On TUESDAY, shares of Itau Unibanco Holding S.A. (NYSE:ITUB) reached at $4.45 price level during last trade its distance from 20 days simple moving average was -12.01%, and its distance from 50 days simple moving average was -19.88% while it has a distance of -10.16% from the 200 days simple moving average. Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of Banco Itau Uruguay S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 10 February 2021 in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee.
Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication.
Key rating considerations are summarized below.Banco Itau Uruguay’s (Itau Uruguay) Baa3 long-term local and foreign currency deposit ratings reflect the bank’s baseline credit assessment (BCA) of ba1 and Moody’s assessment of a very high probability of affiliate support from its parent Itau Unibanco S.A (Ba2, ba2), which results in one-notch uplift to the BCA.Itau Uruguay’s ba1 BCA reflects the bank’s consistent track record of adequate financial metrics, namely liquidity and funding. Itau Unibanco’s asset quality benefits from the large share of collateralized corporate loans in the bank’s portfolio, which are predominantly dollar-denominated and short-term. The bank keeps a sizable volume of liquid assets in the form of government securities and deposits at foreign banks, which boosts its liquidity. Abundant access to low cost, dollar-denominated core deposits is also a positive for Itau Unibanco’s financial profile.
The bank has managed to maintain the participation of market funds in its funding base at low levels. Conversely, the bank’s tightly managed capital position limits its BCA, but it is adequate to support growth.This document summarizes Moody’s view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.The principal methodology used for this review was Banks Methodology published in November 2019.
This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
Past 5 years growth of ITUB observed at -4.80%, and for the next five years the analysts that follow this company are expecting its growth at 1.50%. The average true range (ATR) is a measure of volatility introduced by Welles Wilder in his book, “New Concepts in Technical Trading Systems.” The true range indicator is the greatest of the following: current high less the current low, the absolute value of the current high less the previous close and the absolute value of the current low less the previous close. The average true range is a moving average, generally 14 days, of the true ranges.
The stock has a market cap of $43.22B with 9.76B shares outstanding, of which the float was 5.30B shares. Analysts consider this stock active, since it switched Trading volume reached 24,513,528 shares as compared to its average volume of 38.05M shares. The Average Daily Trading Volume (ADTV) demonstrates trading activity related to the liquidity of the security. When Ave Volume tends to increase, it shows enhanced liquidity.
But when Ave Volume is lower, the security will tend to be cheap as people are not as keen to purchase it. Hence, it might have an effect on the worth of the security. ITUB’s relative volume was 2.01. Relative volume is a great indicator to keep a close eye on, but like most indicators it works best in conjunction with other indicators and on different time frames. Higher relative volume you will have more liquidity in the stock which will tighten spreads and allow you to trade with more size without a ton of slippage.
Important Technical Indicators Analysis Report and Volatility Measures:
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which calculates the predictable return of an asset based on its beta and predictable market returns. Beta is also known as the beta coefficient.
A beta of 1 indicates that the security’s price moves with the market. A beta of less than 1 means that the security is theoretically less volatile than the market. A beta of greater than 1 indicates that the security’s price is theoretically more volatile than the market. After a recent check, beta value for this stock comes out to be 0.98. A statistical measure of the dispersion of returns (volatility) for ITUB producing salvation in Investors mouth, it has week volatility of 4.48% and for the month booked as 3.38%. Regardless of which metric you utilize, a firm understanding of the concept of volatility and how it is measured is essential to successful investing. A stock that maintains a relatively stable price has low volatility. When investing in a volatile security, the risk of success is increased just as much as the risk of failure.
The volatility value is used by the investors for various reasons and purposes in measuring the fundamental price change and the rate of variation in ITUB’s price. The ART is a specific type of indicator, which is capable of weighing up stock volatility in the financial markets effectively.
Itau Unibanco Holding S.A. has an average true range (ATR) of 0.21. Other technical indicators are worth considering in assessing the prospects for EQT. ITUB’s price to sales ratio for trailing twelve months was 1.85 and price to book ratio for most recent quarter was 1.67, whereas price to cash per share for the most recent quarter was 0.23. The Company’s price to free cash flow for trailing twelve months was 5.17. Its quick ratio for most recent quarter was 0. Analysts mean recommendation for the stock was 2.30. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
Should You Go With High Insider Ownership?
Many value investors look for stocks with a high percent of insider ownership, under the theory that when management are shareholders, they will act in its own self interest, and create shareholder value in the long-term. This aligns the interests of shareholders with management, thus benefiting everyone. While this sounds great in theory, high insider ownership can actually lead to the opposite result, a management team that is unaccountable because they can keep their jobs under almost any circumstance.
Itau Unibanco Holding S.A.‘s shares owned by insiders remained 52.10%, whereas shares owned by institutional owners are 24.30%.
Where Do Relative Strength Index (RSI) Stands?
Perhaps, it is one of the most important indicators, because it is used in the technical analysis of the stock in the money market. The relative strength index (RSI) is claimed to depict the latest and past performances of the stock market, based upon the ending price volumes of the current trading period. The RSI is characterized as a momentum oscillator, evaluating the speed and scale of directional price shifts. The momentum exemplifies both rising and falling rates of the Price in the stock market. Using RSI, you can calculate momentum as the percentage of elevated closes to reduced closes. But if the stocks have experienced optimistic changes rapidly, then it might have an increased RSI than stocks. So, it might cause negative changes in the market.
The RSI index is largely used by traders on a 14-day time period and is evaluated on a range from 0 to 100, along with both high and low volumes marked at 70 and 30, correspondingly. Both the shorter and longer timeframes are used by the traders for shorter and longer purposes. It further adds high and low ranges like from 80 to 20 and from 90 to 10. This trend takes place less repeatedly.
However, it represents stronger momentum in the market. In the meantime, the Accenture plc’s 14-day RSI was settled at 29.27. All in all, the trends of the stock market were shifting slowly but surely.
Meanwhile, ITUB traded under umbrella of Financial sector, the stock was traded -37.65% ahead of its 52-week high and 28.65% beyond its 52-week low. So, both the price and 52-week high indicators would give you a clear-cut picture to evaluate the price direction.