The decline in Banco de Chile (BCH) stock price is a huge buying opportunity

Banco de Chile (NYSE: BCH) is -14.24% lower on its value in year-to-date trading and has touched a low of $12.50 and a high of $29.77 in the current 52-week trading range. The BCH stock was last observed hovering at around $18.14 in the last trading session, with the day’s loss setting it -0.14% off its average median price target of $20.50 for the next 12 months. It is also 30.77% off the consensus price target high of $26.00 offered by 12 analysts, but current levels are -2.97% lower than the price target low of $17.48 for the same period.

Currently trading at $18.00, the stock is -3.45% and -0.90% below its SMA20 and SMA50 respectively. However, with a daily trading volume of 0.19 million and changing -0.77% at the moment leaves the stock -10.97% off its SMA200. BCH registered -39.05% loss for a year compared to 6-month loss of -15.41%. The firm has a 50-day simple moving average (SMA 50) of $18.79 and a 200-day simple moving average (SMA200) of $18.35.

The stock witnessed a -1.64% gain in the last 1 month and extending the period to 3 months gives it a 12.15%, and is -4.31% down over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 2.71% over the week and 2.83% over the month.

Banco de Chile (BCH) has around 10911 employees, a market worth around $9.47B and $2.83B in sales. Current P/E ratio is 11.42 and Fwd P/E is 6.22. Profit margin for the company is 28.20%. Distance from 52-week low is 44.00% and -39.54% from its 52-week high. The company has generated returns on investments over the last 12 months (5.90%).

Banco de Chile (BCH) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Banco de Chile (BCH) is a “Hold”. 12 analysts offering their recommendations for the stock have an average rating of 3.00, where 8 rate it as a Hold and 0 think it is a “Overweight”. 3 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

Banco de Chile is expected to release its quarterly report on 08/06/2020 and quarterly earnings per share for the current quarter are estimated at $0.29 with sales reaching $647.45M over the same period.The EPS is expected to shrink by -0.30% this year, but quarterly earnings will post -7.10% year-over-year. Quarterly sales are estimated to shrink -8.60% in year-over-year returns.

Banco de Chile (BCH) Top Institutional Holders

108 institutions hold shares in Banco de Chile (BCH), with institutional investors hold 1.30% of the company’s shares. The shares outstanding are 505.09M, and float is at 384.32M with Short Float at 0.18%. Institutions hold 1.30% of the Float.

The top institutional shareholder in the company is Renaissance Technologies, LLC with over 1.98 million shares valued at $31.9 million. The investor’s holdings represent 81.86% of the BCH Shares outstanding. As of Mar 30, 2020, the second largest holder is Dimensional Fund Advisors LP with 0.54 million shares valued at $8.74 million to account for 22.42% of the shares outstanding. The other top investors are Parametric Portfolio Associates which holds 0.39 million shares representing 16.13% and valued at over $6.28 million, while GW&K Investment Management, LLC holds 13.04% of the shares totaling 0.32 million with a market value of $5.08 million.

Banco de Chile (BCH): Who are the competitors?

The company’s main competitors (and peers) include Banco Latinoamericano de Comercio Exterior S.A (BLX) that is trading -48.35% down over the past 12 months. Itau Corpbanca (ITCB) is -65.31% down on the 1-year trading charts. Short interest in the company’s stock has risen 23.48% from the last report on May 28, 2020 to stand at a total of 0.53 million short shares sold with a short interest ratio of 4.94.