Geo Capital Gestora de Recursos Ltd has made a significant move in the financial markets by acquiring a new stake in Suzano S.A. Sponsored ADR (NYSE: SUZ) during the third quarter of 2023. According to its recent Form 13F filing with the Securities and Exchange Commission (SEC), the investment firm purchased 239,020 shares of Suzano, valued at approximately $2,247,000. This investment now constitutes 4.1% of Geo Capital’s portfolio, positioning Suzano as its 14th largest holding.
Several other institutional investors have also adjusted their positions in Suzano recently, reflecting growing interest in the company. PNC Financial Services Group Inc. increased its holdings by 10.5% during the second quarter, bringing its total to 11,958 shares, which are worth about $113,000. Similarly, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake by 16.2% in the first quarter, now holding 10,017 shares valued at $93,000.
In the third quarter, Moody National Bank Trust Division expanded its position by 5.2%, acquiring an additional 1,438 shares, resulting in a total of 29,311 shares valued at $276,000. Compound Planning Inc. also made a notable increase of 11.3%, now owning 18,569 shares worth $175,000. Banco BTG Pactual S.A. lifted its stake by an impressive 46.3% during the second quarter, now holding 23,706 shares valued at $223,000. Overall, institutional investors now own 2.55% of Suzano’s stock.
Analysts Adjust Ratings and Price Targets
The recent investment activity has prompted analysts to reassess their ratings on Suzano shares. Zacks Research upgraded the stock from a “strong sell” to a “strong buy” in a report published on January 8, 2024. Weiss Ratings reaffirmed a “hold (c)” rating on December 29, 2023. Jefferies Financial Group initiated coverage of Suzano on February 5, 2024, assigning a “buy” rating with a price target of $13.40.
Currently, two research analysts classify the stock as a Strong Buy, while two others recommend a Buy, and one maintains a Hold rating. According to data from MarketBeat, the consensus target price for Suzano stands at $13.40, indicating positive expectations for the company’s performance.
Stock Performance and Recent Earnings
On the trading floor, shares of NYSE: SUZ opened at $10.77 on a recent Thursday. The company boasts a market capitalization of $13.35 billion, with a price-to-earnings ratio of 5.70 and a PEG ratio of 0.21. Additionally, the stock has a beta of 0.67, indicating lower volatility compared to the broader market. The debt-to-equity ratio stands at 2.09, with a quick ratio of 2.59 and a current ratio of 3.18. Over the past year, the stock reached a low of $8.41 and a high of $11.53.
Suzano recently released its quarterly earnings on February 10, 2024, reporting an earnings per share (EPS) of $0.02, exceeding the consensus estimate of ($0.09) by $0.11. The company achieved a net margin of 26.11% and a return on equity of 30.84%, with revenues of $2.52 billion surpassing the expected $2.30 billion.
Analysts are forecasting Suzano S.A. Sponsored ADR to post an EPS of 1.93 for the current fiscal year, reflecting confidence in its continued growth.
Additionally, Suzano has announced a special dividend, which was distributed on February 11, 2024. Shareholders recorded on December 22, 2023, received a dividend of $0.2036 per share. The company’s dividend payout ratio stands at 9.52%.
Founded in Brazil, Suzano S.A. is recognized as a leading global producer of eucalyptus pulp. The company specializes in a diverse range of fiber-based products, catering to the global demand in printing and writing papers, tissue papers, packaging, and specialty paper markets. With an extensive network of production units and logistics operations, Suzano emphasizes integrated operations and quality control throughout its production process.
The company’s sustainable forestry model covers more than one million hectares of managed eucalyptus plantations across Brazil, underscoring its commitment to environmental stewardship and sustainable practices in the pulp and paper industry.
