Cosan (NYSE:CSAN) Shares Gap Up – Should You Buy?

Cosan S.A. Sponsored ADR (NYSE:CSAN) gapped up prior to trading on Wednesday . The stock had previously closed at $2.59, but opened at $2.75. Cosan shares last traded at $2.7350, with a volume of 244,119 shares changing hands.

Wall Street Analyst Weigh In

A number of analysts have commented on the company. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Cosan in a research report on Tuesday, June 9th. HSBC lowered Cosan from a “hold” rating to a “reduce” rating and cut their price objective for the company from $5.00 to $3.20 in a report on Tuesday, May 26th. Finally, Jefferies Financial Group downgraded Cosan to a “hold” rating in a report on Tuesday, May 26th. Three equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and an average target price of $3.85.

Cosan Trading Down 2.4%

The stock has a market cap of $2.63 billion, a PE ratio of -1.08 and a beta of 0.74. The company’s fifty day moving average is $3.57 and its 200-day moving average is $4.09. The company has a debt-to-equity ratio of 2.12, a current ratio of 1.87 and a quick ratio of 1.76.

Cosan (NYSE:CSAN) last posted its quarterly earnings results on Saturday, February 14th. The company reported ($1.61) EPS for the quarter. The business had revenue of $1.74 billion during the quarter. Cosan had a negative net margin of 24.09% and a negative return on equity of 14.30%.

Insider Activity

In other news, insider Maria Rita De Carvalh Drummond sold 37,400 shares of the company’s stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $5.48, for a total value of $204,952.00. Following the sale, the insider owned 2,128,536 shares in the company, valued at $11,664,377.28. This represents a 1.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Rubens Ometto Silveira Mello sold 77,640 shares of the firm’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $3.44, for a total value of $267,081.60. The SEC filing for this sale provides additional information. Insiders sold a total of 187,040 shares of company stock valued at $869,816 in the last quarter.

Hedge Funds Weigh In On Cosan

Institutional investors have recently made changes to their positions in the company. SmartHarvest Portfolios LLC acquired a new position in shares of Cosan in the 1st quarter valued at $46,000. Caitong International Asset Management Co. Ltd purchased a new position in Cosan in the fourth quarter valued at $46,000. Tuttle Capital Management LLC purchased a new position in Cosan in the fourth quarter valued at $51,000. Royal Bank of Canada raised its position in shares of Cosan by 3,266.6% in the first quarter. Royal Bank of Canada now owns 12,389 shares of the company’s stock worth $51,000 after acquiring an additional 12,021 shares during the period. Finally, Clear Harbor Asset Management LLC purchased a new stake in shares of Cosan during the 4th quarter worth about $53,000.

About Cosan

Cosan Limited (NYSE: CSAN) is a Brazilian diversified energy and logistics group focused on agribusiness, fuels, and infrastructure. Its core activities include the cultivation of sugarcane, production of ethanol and sugar, generation of bioelectricity from bagasse, and distribution of fuels under the Raízen joint venture with Shell. Through its subsidiary Moove, Cosan is a leading global producer of base oils and lubricants, while Comgás serves as one of Brazil’s largest natural gas distributors.

Founded in 1936 in the state of São Paulo, Cosan has grown through organic expansion and strategic acquisitions.