Lookout for price to sales ratio Index Banco Bradesco S.A. (NYSE:BBD)

shares of Banco Bradesco S.A. (NYSE:BBD) reached at $2.87 price level during last trade its distance from 20 days simple moving average was 4.23%, and its distance from 50 days simple moving average was 3.74% while it has a distance of -14.21% from the 200 days simple moving average.

Investors in Banco Bradesco S.A. BBD need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 20, 2023 $1.24 Call had some of the highest implied volatility of all equity options today.

 What is Implied Volatility?

Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?

Clearly, options traders are pricing in a big move for Banco Bradesco shares, but what is the fundamental picture for the company? Currently, Banco Bradesco is a Zacks Rank #4 (Sell) in the Banks – Foreign industry that ranks in the Top 18% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while two analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 12 cents per share to 9 cents in that period.

Given the way analysts feel about Banco Bradesco right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

Liquidity:

The stock has a market cap of $28.68B with 5.32B shares outstanding, of which the float was 5.32B shares. Analysts consider this stock active, since it switched Trading volume reached 44,867,248 shares as compared to its average volume of 46.66M 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. BBD’s relative volume was 0.96.

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.

Banco Bradesco S.A. has an average true range (ATR) of 0.11. Other technical indicators are worth considering in assessing the prospects for EQT. BBD’s price to sales ratio for trailing twelve months was 2.05 and price to book ratio for most recent quarter was 0.49, whereas price to cash per share for the most recent quarter was 0.

The Company’s price to free cash flow for trailing twelve months was 0. Its quick ratio for most recent quarter was 0. Analysts mean recommendation for the stock was 2.40. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

Banco Bradesco S.A.‘s shares owned by insiders remained 35.30%, whereas shares owned by institutional owners are 17.70%.

Meanwhile, BBD traded under umbrella of Financial sector, the stock was traded -30.37% ahead of its 52-week high and 19.57% 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.

About Brad Watson

This is Brad Watson and I like to introduce myself as an adviser, in the Financial Stocks Sector. I worked independently as a self motivator and with the financial institute as financial adviser to invest in the financial sector for over 7 years in the developing countries by introducing new phases and ways to improve in the Financial sector. I analyze trading strategy, individual stocks, asset classes, market sectors, and risk to reward parameters in order to provide valuable insight to the alphafinstocks.com community. I like to travel all over the globe to get new experience and provide by best services to the companies. As an adviser I like to work with new people to share and explore new ideas keeping in view minimizing the operating cost and giving the best final product through new Financial and minimizing the time of development.

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