The Technical Case For Continuing To Love Banco Santander, S.A. (NYSE:SAN) Shares

The stock is lingering around the initial support level of $3.92. After this, the following support is at the zone of $3.91. Up until the time the SAN stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 46.19 on the daily chart, and this may be a cause for concern. In case the price goes below $3.91 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $3.96 level may cause a pull-back move approaching $3.99 mark.

Banco Santander, S.A. (SAN) is most likely going to rise 20.35 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $6.27 as 12-month high price target. This represents a whopping 55.58 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $5.08, which means a return possibility of 26.05 percent in comparison with the closing price of the stock of $4.03 in recent trading session. The lowest price set for the stock is $3.55 which is just above -11.91 percent from SAN share’s price at the end of session.

Let’s take a glimpse at some insider activity at Banco Santander, S.A. (NYSE:SAN) and observe the pattern. The earliest insider trade happened on 12/03/2012. NORDSTROM MICHAEL N. gathered a total of 4 thousand shares of the firm at average share price of $7.39. The total amount for the purchase was set at $29.56 thousand. On completing this exchange, the Director account balance was 14.8 thousand shares. The stock lost -46.55 percent from that insider purchase.

In the recent trading session, Banco Santander, S.A. (NYSE:SAN) shares gained 2.16% or 0.09 points to reach at $4.03 with a thin trading volume of 3.385 million shares. It opened the trading session at $3.96, the shares rose to $3.97 and dropped to $3.93, the range by which the price of stock traded the whole session. The company now has a market cap of $67 billion and currently has 17 billion outstanding shares. Banco Santander, S.A. (SAN) stock has plunged -3.67 percent of market value in 21 trading days.

Stock analysts at Deutsche Bank cut their rating on shares of Banco Santander, S.A. (NYSE:SAN) from Buy to a new rating of Hold in their opinion released on December 11. Deutsche Bank analysts have downgraded their rating of SAN shares from Buy to Hold in a separate flash note to investors on December 10. Analysts at Keefe Bruyette downgraded the company stock to a Underperform call from its previous Outperform stance, in a flash note that dated back to October 31.

SAN stock’s trailing 3-year beta is 1.11, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $0.95 share in the trailing 52 weeks. The stock’s value fallen -4.83 percent year to date (YTD) compared to a decline of -19.1 percent in 52 week’s period. The firm’s shares are still trading -23.33 percent below its 1-year high of $5.25 and 10.27 percent up from 52-week low of $3.65. The average consensus ranking on the company is 3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

Banco Santander, S.A. (SAN) shares are trading at a P/E ratio of 5.09 times earnings posted in the trailing 12 months. The industry SAN deals with has an average P/E of 14.07. Its P/B ratio is standing at 0.62X compared to the 1.52 industry average.

Past records have indicated that shares in Banco Santander, S.A. declined on 10 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.