Why Banco Macro S.A. (BMA) Stock Gained Sharply Today

Banco Macro S.A. (NYSE:BMA) is one of the best performers on the stock market today. At current price of $26.27, the shares have already added 1.47 points (5.93% higher) from its previous close of $24.8. Should you buy or avoid them? The stock sets an active trading volume day with a reported 110479 contracts so far this session. BMA shares had a relatively better volume day versus average trading capacity of 510.54 thousand shares, but with a 26.28 million float and a -1.7% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for BMA stock indicates that the average analyst price target is $36.44 per share. This means the stock has a potential increase of 38.71% from where the BMA share price has been trading recently which is between $24.0027 and $24.92.

During the recent trading session for Banco Macro S.A. (NYSE:BMA), the company witnessed their stock rise $0.85 over a week and surge $1.73 from the price 20 days ago. When compared to their established 52-week high of $77.31, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 09/08/19. The recent low of $21.41 stood for a -66.02% since 04/09/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.18 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Banco Macro S.A., the two-week RSI stands at 57.08. This figure suggests that BMA stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current BMA readings is similarly very revealing as it has a stochastic reading of 61.84% at this stage. This figure means that BMA share price today is being neutral.

Technical chart claims that Banco Macro S.A. (BMA) would settle between $25.15/share to $25.49/share level. However, if the stock price goes below the $24.23 mark, then the market for Banco Macro S.A. becomes much weaker. If that happens, the stock price might even plunge as low as $23.66 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.2. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Citigroup lowered their recommendation on shares of BMA from Buy to Neutral in their opinion released on September 19. BofA/Merrill analysts have lowered their rating of Banco Macro S.A. (NYSE:BMA) stock from Buy to Underperform in a separate flash note issued to investors on September 19. Analysts at Morgan Stanley lowered the stock to a Underweight call from its previous Overweight recommendation, in a research note that dated back to August 12.

BMA equity has an average rating of 2.83, with the figure leaning towards a bullish end. 6 analysts who tracked the company were contacted by Reuters. Amongst them, 4 rated the stock as a hold while the remaining 2 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 1 analysts rated Banco Macro S.A. (NYSE:BMA) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, BMA stock price is currently trading at 3.69X forward 12-month Consensus EPS estimates, and its P/E ratio is 15.7 while for the average stock in the same group, the multiple is 11.3. Banco Macro S.A. current P/B ratio of 0 means it is trading at a discount against its industry’s 1.3.

Banco Macro S.A. (BMA)’s current-quarter revenues are projected to climb by nearly -10.5% to hit $372580, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over -20.8% from $1.81 billion to a noteworthy $1.43 billion. At the other end of the current quarter income statement, Banco Macro S.A. is expected to see its adjusted earnings surge by roughly -33.6% to hit $1.46 per share. For the fiscal year, BMA’s earnings are projected to climb by roughly -13.2% to hit $7.36 per share.