Zacks Investment Research Lowers Companhia Brasileira de Distribuicao (NYSE:CBD) to Hold

Zacks Investment Research cut shares of Companhia Brasileira de Distribuicao (NYSE:CBD) from a buy rating to a hold rating in a report issued on Friday morning, Zacks.com reports. The firm currently has $16.00 price objective on the stock.

According to Zacks, “Companhia Brasileira has outperfromed the industry in the past six months. The company delivered an impressive second-quarter 2020 performance, wherein gross revenues surged 61.1% year over year with exceptional growth across all operations. Notably, coronavirus-led stock hoarding has been driving volumes. Increased sales to individual customers at Assai, solid recovery of Hypermarket at Multivarejo and online strength at Grupo Exito and Multivarejo were main drivers. Also, social distancing led to a solid digital business, which has been gaining from Companhia Brasileira’s constant digital transformation efforts like James Delivery launch and alliance with Cheftime. However, such endeavors along with store expansion efforts resulted in high costs. Also, additional hiring and elevated safety measures amid the pandemic entail escalated costs.”

Separately, TheStreet raised shares of Companhia Brasileira de Distribuicao from a d+ rating to a c rating in a research report on Thursday, July 30th.

NYSE CBD opened at $13.93 on Friday. The company has a debt-to-equity ratio of 1.47, a quick ratio of 0.56 and a current ratio of 0.98. Companhia Brasileira de Distribuicao has a 52 week low of $9.39 and a 52 week high of $22.64. The business has a 50 day moving average price of $12.45 and a 200-day moving average price of $12.65.

Companhia Brasileira de Distribuicao (NYSE:CBD) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.19 earnings per share (EPS) for the quarter. Companhia Brasileira de Distribuicao had a net margin of 0.51% and a return on equity of 2.88%. The business had revenue of $3.87 billion during the quarter. Equities research analysts forecast that Companhia Brasileira de Distribuicao will post 0.71 EPS for the current year.

Large investors have recently modified their holdings of the business. Portland Hill Asset Management Ltd grew its stake in shares of Companhia Brasileira de Distribuicao by 2.7% in the 2nd quarter. Portland Hill Asset Management Ltd now owns 31,481 shares of the company’s stock worth $416,000 after acquiring an additional 837 shares in the last quarter. US Bancorp DE increased its stake in Companhia Brasileira de Distribuicao by 12.8% in the 1st quarter. US Bancorp DE now owns 10,297 shares of the company’s stock valued at $130,000 after buying an additional 1,170 shares during the last quarter. Confluence Investment Management LLC increased its stake in Companhia Brasileira de Distribuicao by 19.8% in the 2nd quarter. Confluence Investment Management LLC now owns 15,732 shares of the company’s stock valued at $206,000 after buying an additional 2,601 shares during the last quarter. Morgan Stanley lifted its position in shares of Companhia Brasileira de Distribuicao by 90.5% during the 1st quarter. Morgan Stanley now owns 5,852 shares of the company’s stock worth $74,000 after buying an additional 2,780 shares in the last quarter. Finally, AQR Capital Management LLC boosted its stake in shares of Companhia Brasileira de Distribuicao by 5.7% in the 1st quarter. AQR Capital Management LLC now owns 72,837 shares of the company’s stock worth $918,000 after buying an additional 3,923 shares during the last quarter. Institutional investors and hedge funds own 8.59% of the company’s stock.

About Companhia Brasileira de Distribuicao

Companhia Brasileira de DistribuiĆ§Ć£o engages in the retail of food, clothing, home appliances, electronics, and other products through its chain of hypermarkets, supermarkets, specialized stores, and department stores in Brazil. The company operates through two segments, Food Retail; and Cash and Carry.

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