Pre-Market Activity Shows Heavy Volume And Movement For BRF (BRFS)

Trade-Ideas LLC identified BRF ( BRFS) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified BRF as such a stock due to the following factors:

  • BRFS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.2 million.
  • BRFS traded 310,252 shares today in the pre-market hours as of 8:34 AM, representing 12.5% of its average daily volume.

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More details on BRFS:

BRF S.A., together with its subsidiaries, focuses on raising, producing, and slaughtering poultry, pork, and beef in Brazil. It operates in three segments: Domestic Market (Brazil), Foreign Market (International), and Food Service. The stock currently has a dividend yield of 1.8%. BRFS has a PE ratio of 29. Currently there is 1 analyst that rates BRF a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for BRF has been 2.3 million shares per day over the past 30 days. BRF has a market cap of $11.3 billion and is part of the consumer goods sector and food & beverage industry. Shares are down 38.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates BRF as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Food Products industry and the overall market, BRF SA's return on equity exceeds that of both the industry average and the S&P 500.
  • BRF SA's earnings per share declined by 41.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BRF SA increased its bottom line by earning $0.93 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($3.12 versus $0.93).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Food Products industry average. The net income has significantly decreased by 27.6% when compared to the same quarter one year ago, falling from $228.47 million to $165.51 million.
  • Net operating cash flow has decreased to $235.51 million or 40.16% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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