Banco Macro S.A. (BMA): More Irrationality?

The stock of Banco Macro S.A. (NYSE:BMA) has been Downgraded to Hold from Buy by HSBC Securities in its latest research note that was published on June 05. Citigroup analysts bumped their recommendation on BMA stock from Neutral to Buy in a separate flash note to investors on January 08. Analysts at Citigroup downgraded the stock to a Neutral call from its previous Buy stance, in a research note that dated back to August 30.

Banco’s stock is covered by 8 analysts, with 2 of them rating the stock as Buy. It has been deemed to have strong buy by 1 of the analysts, 5 of them have rated it as a Hold while none of them rated it as sell. The situation was different a month ago when the stock was rated as a Buy by only 2 analysts. 2 of them rated it as strong buy with 4 of them recommended investors to Hold on to the stock. Meanwhile, none analyst(s) rated it as a sell. The above data shows that BMA has an average analyst rating of 2.38.

Banco Macro S.A., which has current market capitalization of above $5 Billion, published its last quarter earnings on March 31, 2019. The company was able to amass $416.83 million in revenue. This figure is $5.44 million more than what analysts had expected which was $411.39 million. During the first quarter of the year, Banco also recorded $2.95 earnings per share (EPS) which is $0.88 above the $2.07 estimated by Thomson Reuter’s analyst, leading to a surprise factor of 42.22%.

BMA surged by $3.17 during the normal trading session on Tuesday and reaching a high of $66.42 during the day while it closed the day at $66.30. The Banco stock had a low trading volume of 0.38 million shares on that day, which is low compared to the average daily volume of 624.98M shares. BMA has also lost 6.49% of its value over the past 7 days. However, the stock has surged by 45.08% in the 3 months of the year. Over the past six months meanwhile, it has gained 11.09% while it has added 49.93% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -13.01% from its 3 months high price. However, taking another look at BMA will indicate that it is trading +57.44% away from its 90-day low. Looking at the bigger picture, the Banco Macro S.A. stock has dropped by -13.01% from its 52-week high while it has surged by +107.19% from its 52-week low price.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 68.08%. This figure is better than the company’s 20-day Raw Stochastic average which currently stands at 28.53%. Over the past 20 days, Banco’s Stochastic %K stood at 17.36% while its Stochastic %D was revealed to be 19.98%.