BRF S.A. (BRFS) – The 28.6% Upside Potential Remains

BRF S.A. (NYSE: BRFS) is -57.24% lower on its value in year-to-date trading and has touched a low of $2.27 and a high of $9.78 in the current 52-week trading range. The BRFS stock was last observed hovering at around $3.60 in the last trading session, with the day’s gains setting it 0.12% off its average median price target of $5.21 for the next 12 months. It is also 41.42% off the consensus price target high of $6.35 offered by 11 analysts, but current levels are -4.79% lower than the price target low of $3.55 for the same period.

Currently trading at $3.72, the stock is -2.87% and -4.99% below its SMA20 and SMA50 respectively. However, with a daily trading volume of 8.8 million and changing 3.33% at the moment leaves the stock -30.48% off its SMA200. BRFS registered -58.76% loss for a year compared to 6-month loss of -36.52%. The firm has a 50-day simple moving average (SMA 50) of $3.8856 and a 200-day simple moving average (SMA200) of $4.0573.

The stock witnessed a -4.37% gain in the last 1 month and extending the period to 3 months gives it a -16.78%, and is 2.20% up 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 3.82% over the week and 4.01% over the month.

BRF S.A. (BRFS) has around 87829 employees, a market worth around $2.88B and $6.43B in sales. Current P/E ratio is 12.16 and Fwd P/E is 12.83. Profit margin for the company is 3.40%. Distance from 52-week low is 63.88% and -61.96% from its 52-week high. The company has generated returns on investments over the last 12 months (11.40%).

BRF S.A. (BRFS) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for BRF S.A. (BRFS) is a “Overweight”. 11 analysts offering their recommendations for the stock have an average rating of 2.20, where 5 rate it as a Hold and 0 think it is a “Overweight”. 5 of the analysts rate the stock as a “Buy”. 1 analysts have rated the stock as a Sell or Underperform.

BRF S.A. is expected to release its quarterly report on 11/09/2020 and quarterly earnings per share for the current quarter are estimated at $0.06 with sales reaching $1.85B over the same period.The EPS is expected to grow by 157.90% this year, but quarterly earnings will post -15.20% year-over-year. Quarterly sales are estimated to grow 0.80% in year-over-year returns.

BRF S.A. (BRFS) Top Institutional Holders

201 institutions hold shares in BRF S.A. (BRFS), with institutional investors hold 11.47% of the company’s shares. The shares outstanding are 809.61M, and float is at 804.40M with Short Float at 0.36%. Institutions hold 11.47% of the Float.

The top institutional shareholder in the company is Wells Fargo & Company with over 20.16 million shares valued at $80.04 million. The investor’s holdings represent 2.48% of the BRFS Shares outstanding. As of Jun 29, 2020, the second largest holder is Macquarie Group Limited with 9.62 million shares valued at $38.18 million to account for 1.18% of the shares outstanding. The other top investors are INCA Investments, LLC which holds 6.07 million shares representing 0.75% and valued at over $24.11 million, while BW Gestao de Investimentos Ltda. holds 0.69% of the shares totaling 5.62 million with a market value of $22.31 million.

BRF S.A. (BRFS): Who are the competitors?

The company’s main competitors (and peers) include Tyson Foods Inc. (TSN) that is trading -32.85% down over the past 12 months. The Unilever Group (UL) is -7.26% down on the 1-year trading charts. Short interest in the company’s stock has fallen -17.72% from the last report on Jul 14, 2020 to stand at a total of 4.85 million short shares sold with a short interest ratio of 1.32.