Cosan (NYSE:CZZ) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Friday.
According to Zacks, “For 2018, Cosan affirmed its pro-forma net revenues to be R$50-R$53 billion. It also confirmed the EBITDA outlook of R$4.9-R$5.4 billion for the year. At Raizen, Cosan expects crushed sugarcane volumes of 60-63 million tons down from 62-66 million tons expected earlier for the crop-year April 2018-March 2019. The company has trimmed estimates for sugarcane crushing at Raízen due to drier weather which affected productivity at some regions. The company is also dealing with the adverse impacts of rising costs of sales and services. If unchecked, rise in costs is likely to prove detrimental to its profitability. Also, higher debt levels remain a concern. “
Separately, Credit Suisse Group cut shares of Cosan from an “outperform” rating to a “neutral” rating in a research report on Monday, July 23rd. One investment analyst has rated the stock with a sell rating, four have given a hold rating and one has assigned a buy rating to the company. Cosan currently has a consensus rating of “Hold” and an average price target of $12.50.
NYSE:CZZ traded down $0.06 during trading hours on Friday, reaching $6.47. The company’s stock had a trading volume of 18,869 shares, compared to its average volume of 1,073,808. The stock has a market cap of $1.58 billion, a PE ratio of 10.11 and a beta of 2.24. Cosan has a 1 year low of $6.34 and a 1 year high of $11.89. The company has a quick ratio of 1.48, a current ratio of 1.58 and a debt-to-equity ratio of 1.43.
Cosan (NYSE:CZZ) last issued its earnings results on Friday, August 10th. The basic materials company reported $0.13 EPS for the quarter. The company had revenue of $1.14 billion for the quarter. Cosan had a net margin of 4.79% and a return on equity of 4.77%. sell-side analysts anticipate that Cosan will post 1.95 EPS for the current year.
Several hedge funds have recently added to or reduced their stakes in the business. Wells Fargo & Company MN increased its position in shares of Cosan by 97.1% in the second quarter. Wells Fargo & Company MN now owns 3,862,922 shares of the basic materials company’s stock valued at $29,474,000 after acquiring an additional 1,903,141 shares during the period. Acadian Asset Management LLC increased its position in shares of Cosan by 91.1% in the second quarter. Acadian Asset Management LLC now owns 2,613,750 shares of the basic materials company’s stock valued at $19,942,000 after acquiring an additional 1,245,933 shares during the period. Hsbc Holdings PLC increased its position in shares of Cosan by 27.6% in the first quarter. Hsbc Holdings PLC now owns 2,163,847 shares of the basic materials company’s stock valued at $22,484,000 after acquiring an additional 467,838 shares during the period. Millennium Management LLC increased its position in shares of Cosan by 10.0% in the first quarter. Millennium Management LLC now owns 2,118,061 shares of the basic materials company’s stock valued at $22,007,000 after acquiring an additional 192,606 shares during the period. Finally, BlackRock Inc. increased its position in shares of Cosan by 47.0% in the second quarter. BlackRock Inc. now owns 1,757,324 shares of the basic materials company’s stock valued at $13,409,000 after acquiring an additional 561,980 shares during the period. Hedge funds and other institutional investors own 26.72% of the company’s stock.
Cosan Limited, together with its subsidiaries, engages in fuel and natural gas distribution, logistics, lubricant, sugar and ethanol businesses primarily in Brazil and internationally. The company's Raízen Energia produces and markets products derived from sugar cane, including raw sugar, anhydrous, and hydrated ethanol, as well as activities related to energy cogeneration from sugarcane bagasse.
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