Are Cosan Limited (CZZ) Shares Headed For A Pullback?

On Tuesday, shares of Cosan Limited (NYSE:CZZ) marked $13.90 per share versus a previous $13.75 closing price. With having a 1.09% gain, an insight into the fundamental values of Cosan Limited, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. CZZ showed a rise of 57.95% within its YTD performance, with highs and lows between $6.20 – $14.99 during the period of 52 weeks, compared to the simple moving average of 23.37% in the period of the last 200 days.

JP Morgan equity researchers changed the status of Cosan Limited (NYSE: CZZ) shares from “Neutral” to a “Overweight” rating in the report published on February 19th, 2019. Other analysts, including Morgan Stanley, also published their reports on CZZ shares. Morgan Stanley repeated the rating from the previous report, marking CZZ under “Overweight” rating, in the report published on January 16th, 2019. Additionally, CZZ shares got another “Neutral” rating from JP Morgan. On the other hand, Standpoint Research Downgrade the “Hold” rating for CZZ shares, as published in the report on October 7th, 2016. BofA/Merrill seems to be going bullish on the price of CZZ shares, based on the price prediction for CZZ, indicating that the shares will jump from $8.40 to $3.60, giving the shares “Neutral” rating based on their report from September 28th, 2015. Another “Buy” rating came from Goldman, providing a prediction for $3.60 price target according to the report published in May 12th, 2015.

Cosan Limited (CZZ) Analysis

The present dividend yield for CZZ owners is set at 0.01, marking the return investors will get regardless of the company’s performance in the upcoming period.However, in order for the company to be able to pay its dividends, just like it is the case with Cosan Limited, the company needs to provide a healthy cash flow, currently at the value of 19.12. In addition, the growth of sales from quarter to quarter is recording 33.20%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Cosan Limited (CZZ) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 17.90% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.60 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while CZZ is currently recording an average of 796.46K in volumes. The volatility of the stock on monthly basis is set at 3.38%, while the weekly volatility levels are marked at 4.94%with 1.76% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $14.22, indicating growth from the present price of $13.90, which can represent yet another valuable research and analysis points that can help you decide whether to invest in CZZ or pass.

What to Look for When Analyzing Cosan Limited Shares?

Cosan Limited (CZZ) is based in the Brazil and it represents one of the well-known company operating with Utilities sector. If you wish to compare CZZ shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 12.93 for Cosan Limited, while the value 8.93 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 1.08 is supported by the yearly ESP growth of 0.00%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 38.10%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 64.00% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in CZZ Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in CZZ in the recent period. That is how Renaissance Technologies LLC now has an increase position in CZZ by 12.59% in the first quarter, owning 7.57 million shares of CZZ stocks, with the value of $111.11 million after the purchase of an additional 846,700 shares during the last quarter. In the meanwhile, Asset Value Investors Ltd. also increased their stake in CZZ shares changed 192.88% in the first quarter, which means that the company now owns 5.91 million shares of company, all valued at $86.64 million after the acquisition of additional 3,889,602 shares during the last quarter.

Norges Bank Investment Management acquired a new position in Cosan Limited during the first quarter, with the value of $66.09 million, and Arrowstreet Capital LP increased their stake in the company’s shares by 75.71% in the first quarter, now owning 1,050,174 shares valued at $35.76 million after the acquisition of the additional 2.44 million shares during the last quarter. At the present, 64.00% of CZZ shares are in the ownership of institutional investors.