On Monday, Banco Bradesco SA (ADR) (NYSE:BBD), along with Itau Unibanco (ITUB), announced that they had slowed things down as far as releasing an IPO for reinsurance company IRB-Brasil Resseguros. They requested that the Securities and Exchange Commission in Brazil delay their analysis for two months. With a 20% stake in IRB-Brasil Resseguros, Banco Bradesco obviously has some concerns, although they didn’t divulge any further information. It is believed that this may be part of the reason for Tuesday’s continued stock decline.
The stock is down 5.55% or $0.34 after the negative news, hitting $5.79 per share. About 8.42 million shares traded hands. BBD has declined 42.39% since April 23, 2015 and is downtrending. It has underperformed by 41.26% the S&P500.
Out of 2 analysts covering Banco Bradesco SA (NYSE:BBD), 2 rate it “Buy”, 0 “Sell”, while 0 “Hold”. This means 100% are positive. Banco Bradesco SA was the topic in 2 analyst reports since July 29, 2015 according to StockzIntelligence Inc. Deutsche Bank upgraded the stock on October 12 to “Buy” rating.
Banco Bradesco S.A. is a commercial bank. The company has a market cap of $32.80 billion. The Bank offers a range of banking and financial services and products in Brazil and abroad to individuals, companies and local and international firms and institutions. It has 5.41 P/E ratio. The Company’s services and products include banking operations, such as loans and advances and deposit-taking, credit card issuance, purchasing consortiums, insurance, leasing, payment collection and processing, pension plans, asset management and brokerage services.