Grupo Supervielle (NYSE:SUPV) announced its quarterly earnings results on October 31, 2023, revealing a significant earnings per share (EPS) loss of ($0.43). This figure fell short of analysts’ expectations, which had anticipated a profit of $0.03, resulting in a notable miss of $0.46. The company’s return on equity stood at 6.82%, with a net margin of 4.08%.
Despite the disappointing earnings report, Grupo Supervielle’s stock rose by 5.5% during Tuesday’s trading session, closing at $10.22. The trading volume reached 1,967,573 shares, surpassing its average of 1,653,686 shares. Current financial ratios included a current ratio of 0.96, a quick ratio of 0.96, and a debt-to-equity ratio of 0.38. The stock has fluctuated significantly over the past year, with a low of $4.54 and a high of $19.75.
Analyst Ratings and Market Response
In the aftermath of the earnings announcement, several analysts reassessed their ratings of Grupo Supervielle. On October 28, 2023, JPMorgan Chase & Co. upgraded the company from an “underweight” to a “neutral” rating, raising its price target from $5.00 to $12.00. Following this, Citigroup elevated its rating from “neutral” to “buy” on November 3, 2023. Wall Street Zen also upgraded its stance from “sell” to “hold”.
Currently, two investment analysts have assigned a Buy rating to the stock, while three have issued Hold ratings. According to MarketBeat.com, Grupo Supervielle maintains a consensus rating of “Hold” with an average target price of $14.67.
Institutional Investment Activity
Recent movements in institutional investments have also been noteworthy. UBS Group AG increased its stake in Grupo Supervielle by 151.2% during the third quarter, now holding 567,393 shares valued at approximately $2.81 million. Similarly, BNP Paribas Financial Markets raised its position by 45.7%, acquiring an additional 167,265 shares to reach a total of 533,041 shares valued at around $2.64 million.
Other hedge funds, such as Quantbot Technologies LP, have initiated new positions, while Engineers Gate Manager LP and Brevan Howard Capital Management LP have significantly bolstered their holdings in the company.
Grupo Supervielle operates as a financial services holding company based in Argentina, providing a range of banking products and services. Its offerings include personal and business banking, corporate banking, consumer finance, insurance, and asset management among others. The company’s diverse portfolio includes savings accounts, various loan products, credit and debit cards, and investment services.
As the market continues to react to Grupo Supervielle’s financial performance, stakeholders will be closely monitoring both its earnings trends and analyst sentiment moving forward.
