What’s Up With All The Volatility in Itau Unibanco Holding S.A. (NYSE:ITUB) Trading?

Taking into account all relevant factors, Itau Unibanco Holding S.A. (NYSE:ITUB) scores 40% Sell on the technical side. The share price is also flashing a Sell from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for ITUB averaged 50% Buy with an average daily trading volume over the past 20 days at 16747967 shares. Those using medium-term investment strategies, the shares have overall a 0.5% Sell signal while the 50-day average daily volume remained almost 18553771 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was 18254248 shares, is signaling100% Sell for long term investors.

The stock is lingering around the initial support level of $8.22. After this, the following support is at the zone of $8.15. Up until the time the ITUB stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 34.84 on the daily chart, and this may be a cause for comfort. In case the price goes below $8.15 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $8.34 level may cause a pull-back move approaching $8.39 mark.

In the recent trading session, Itau Unibanco Holding S.A. (NYSE:ITUB) shares gained 0.36% or 0.03 points to reach at $8.31 with a thin trading volume of 3.776 million shares. It opened the trading session at $8.32, the shares rose to $8.33 and dropped to $8.21, the range by which the price of stock traded the whole session. The company now has a market cap of $77 billion and currently has 9.3 billion outstanding shares. Itau Unibanco Holding S.A. (ITUB) stock has plunged -5.91 percent of market value in 21 trading days.

Stock analysts at UBS cut their rating on shares of Itau Unibanco Holding S.A. (NYSE:ITUB) from Buy to a new rating of Neutral in their opinion released on November 21. JP Morgan analysts have downgraded their rating of ITUB shares from Overweight to Neutral in a separate flash note to investors on November 19. Analysts at Citigroup issued an upgrade for the stock to Buy from previous rating of Neutral, in a research note that dated back to August 27.

ITUB stock’s trailing 3-year beta is 0.77, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $0.63 share in the trailing 52 weeks. The stock’s value fallen -9.51 percent year to date (YTD) compared to a decline of -13.85 percent in 52 week’s period. The firm’s shares are still trading -19.62 percent below its 1-year high of $10.34 and 12.17 percent up from 52-week low of $7.41. The average consensus ranking on the company is 2.8, 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 sell.

Itau Unibanco Holding S.A. (ITUB) shares are trading at a P/E ratio of 15.1 times earnings posted in the trailing 12 months. The industry ITUB deals with has an average P/E of 14.07. Its P/B ratio is standing at 2.55X compared to the 1.52 industry average. It is additionally sporting a 0.77 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.75.

Past records have indicated that shares in Itau Unibanco Holding S.A. rose 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. Investors will get the next hint of ITUB’s Q4 earnings on February 17. Analysts are predicting revenue to climb 5.4 percent to $7.88B in the financial fourth quarter, while EPS will soar by about 5.88 percent to $0.18 per share. In the last quarter, it’s earnings of $0.18998 per share came better than the $0.18123, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $7.76B, topping the $7.65B analysts had expected. Earnings are seen to rise by 7.9 percent this year, 12.29 percent in the coming year and the trend continues by 9.3 percent every year in the next 5 years.