Companhia de Saneamento Basico (NYSE:SBS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “In the last three months, SABESP's American Depository Receipts (ADR) underperformed the industry. We believe that the company is exposed to risks arising from governmental interference and dependence on electricity as a source of energy. Moreover, the company's higher debt levels, if unchecked, will inflate its financial obligations, posing serious threats to its profitability. Also, any unwarranted rise in operating expenses as well as adverse impacts from currency translation will impact its margins and hence dent its profitability. In the third quarter 2017, the company's revenues were down 5.6% year over year due to 35.1% decline in construction revenues as a result of lower investments in municipalities served. The stock's earnings estimates for 2018 decreased in the last 60 days.”

Several other equities research analysts have also recently issued reports on SBS. Scotiabank raised Companhia de Saneamento Basico from an “underperform” rating to a “sector perform” rating in a research note on Monday, October 9th. ValuEngine raised Companhia de Saneamento Basico from a “hold” rating to a “buy” rating in a research note on Tuesday, November 14th. UBS Group cut Companhia de Saneamento Basico from a “buy” rating to a “neutral” rating in a research note on Thursday, November 2nd. JPMorgan Chase & Co. raised Companhia de Saneamento Basico from a “neutral” rating to an “overweight” rating in a research note on Monday, November 27th. Finally, HSBC raised Companhia de Saneamento Basico from a “hold” rating to a “buy” rating in a research note on Wednesday, November 22nd. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and five have assigned a buy rating to the stock. The company currently has an average rating of “Hold”.

Companhia de Saneamento Basico (NYSE SBS) traded up $0.01 during mid-day trading on Tuesday, reaching $10.45. The company’s stock had a trading volume of 457,300 shares, compared to its average volume of 1,772,572. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.07 and a current ratio of 1.10. The firm has a market capitalization of $7,230.00, a PE ratio of 8.29 and a beta of 1.85. Companhia de Saneamento Basico has a one year low of $8.15 and a one year high of $11.33.

Several hedge funds and other institutional investors have recently modified their holdings of SBS. Raymond James Trust N.A. grew its stake in shares of Companhia de Saneamento Basico by 0.9% in the second quarter. Raymond James Trust N.A. now owns 10,474 shares of the utilities provider’s stock valued at $100,000 after buying an additional 91 shares in the last quarter. Ameriprise Financial Inc. acquired a new stake in shares of Companhia de Saneamento Basico in the second quarter valued at $117,000. Virtu KCG Holdings LLC acquired a new stake in shares of Companhia de Saneamento Basico in the second quarter valued at $119,000. Institute for Wealth Management LLC. acquired a new stake in shares of Companhia de Saneamento Basico in the second quarter valued at $140,000. Finally, ETRADE Capital Management LLC grew its stake in shares of Companhia de Saneamento Basico by 2.6% in the second quarter. ETRADE Capital Management LLC now owns 17,462 shares of the utilities provider’s stock valued at $166,000 after buying an additional 440 shares in the last quarter. 15.97% of the stock is owned by institutional investors and hedge funds.

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Companhia de Saneamento Basico Company Profile

Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP is a water and sewage service provider. The Company provides water and sewage services to a range of residential, commercial, industrial and governmental customers in over 360 municipalities in the state of Sao Paulo, including the city of Sao Paulo.

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