Banco Bradesco (NYSE:BBD) Shares Gap Up Following Analyst Upgrade

Banco Bradesco SA (NYSE:BBD)’s share price gapped up before the market opened on Tuesday after JPMorgan Chase & Co. upgraded the stock from a neutral rating to an overweight rating. The stock had previously closed at $4.33, but opened at $4.52. Banco Bradesco shares last traded at $4.4750, with a volume of 19,655,258 shares.

BBD has been the subject of a number of other research reports. Weiss Ratings cut Banco Bradesco from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, July 24th. Bradesco Corretora raised Banco Bradesco from a “neutral” rating to an “overweight” rating in a research report on Tuesday. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Banco Bradesco presently has a consensus rating of “Moderate Buy”.

Banco Bradesco News Roundup

Here are the key news stories impacting Banco Bradesco this week:

• Positive Sentiment: JPMorgan upgraded Banco Bradesco from “Neutral” to “Overweight,” prompting gains in the bank’s shares. The upgrade suggests the firm sees improving earnings prospects or valuation upside following the bank’s turnaround and Brazil’s election-related market rally. JPMorgan upgrades Banco Bradesco stock to Overweight
• Positive Sentiment: An executive responsible for Banco Bradesco’s digital retail operations bought 55,444 shares for approximately $997,000. The purchase increased the executive’s prior equity position by about 7%, providing a notable insider-confidence signal. Banco Bradesco executive share purchase
• Positive Sentiment: Director Caffarelli separately purchased 31,266 preference shares for roughly $562,000. Multiple sizable insider purchases may bolster investor confidence in Bradesco’s valuation and recovery outlook. Banco Bradesco director share purchase
• Negative Sentiment: Put-option activity surged to 20,124 contracts, approximately 621% above average daily volume. The activity may reflect hedging or bearish speculation and signals increased near-term uncertainty, though it does not necessarily indicate that investors expect a decline.
• Negative Sentiment: A Seeking Alpha analysis downgraded Bradesco, arguing the bank may no longer offer the same turnaround upside after the election-driven rally. This creates a counterpoint to JPMorgan’s upgrade and raises concerns that some positive expectations are already reflected in the stock price. Bradesco is no longer just a turnaround story after the election rally

Institutional Investors Weigh In On Banco Bradesco

A number of institutional investors have recently made changes to their positions in BBD. Arrowstreet Capital Limited Partnership boosted its stake in Banco Bradesco by 25.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 82,163,260 shares of the bank’s stock valued at $273,604,000 after purchasing an additional 16,908,425 shares during the period. Franklin Resources Inc. increased its position in Banco Bradesco by 2,469.2% during the 4th quarter. Franklin Resources Inc. now owns 47,947,074 shares of the bank’s stock worth $159,664,000 after buying an additional 46,080,856 shares during the period. Bank of America Corp DE lifted its holdings in shares of Banco Bradesco by 355.9% during the first quarter. Bank of America Corp DE now owns 28,078,599 shares of the bank’s stock worth $102,487,000 after buying an additional 21,920,074 shares in the last quarter. Amundi lifted its holdings in shares of Banco Bradesco by 20.0% during the first quarter. Amundi now owns 24,583,083 shares of the bank’s stock worth $89,728,000 after buying an additional 4,099,099 shares in the last quarter. Finally, Sei Investments Co. boosted its position in shares of Banco Bradesco by 3.4% in the first quarter. Sei Investments Co. now owns 19,296,977 shares of the bank’s stock valued at $70,434,000 after acquiring an additional 641,744 shares during the period.

Banco Bradesco Stock Performance

The company has a debt-to-equity ratio of 2.93, a current ratio of 1.48 and a quick ratio of 1.48. The stock’s 50-day moving average price is $3.44 and its 200-day moving average price is $3.56. The company has a market cap of $46.04 billion, a P/E ratio of 10.35, a PEG ratio of 0.69 and a beta of 0.46.

Banco Bradesco (NYSE:BBD) last released its quarterly earnings results on Tuesday, June 30th. The bank reported $0.12 EPS for the quarter. The business had revenue of $6.77 billion for the quarter. Banco Bradesco had a net margin of 10.55% and a return on equity of 14.61%. Equities analysts anticipate that Banco Bradesco SA will post 0.5 EPS for the current year.

Banco Bradesco Dividend Announcement

The business also recently announced a special dividend, which will be paid on Monday, May 10th. Stockholders of record on Thursday, October 15th will be issued a $0.0728 dividend. The ex-dividend date of this dividend is Thursday, October 15th. Banco Bradesco’s dividend payout ratio is 7.14%.

Banco Bradesco Company Profile

Banco Bradesco SA is a Brazilian financial services company headquartered in Osasco, São Paulo. Through its banking operations, the company serves individuals, businesses, corporate clients and public-sector entities across Brazil.

Bradesco offers a broad range of products and services, including checking and savings accounts, loans, credit cards, mortgages, investment and wealth-management products, payment solutions, foreign-exchange services and investment banking. Its operations also include insurance, pension plans and capitalization products through affiliated businesses.

Founded in 1943 in Marília, São Paulo, Bradesco has developed an extensive distribution network of branches, automated banking facilities and digital channels.