Bunge (NYSE:BG) Shares Gap Up After Better-Than-Expected Earnings

Bunge Ltd (NYSE:BG)’s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $54.51, but opened at $56.36. Bunge shares last traded at $58.43, with a volume of 2,253,454 shares changing hands.

The basic materials company reported $1.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $1.20. Bunge had a net margin of 0.74% and a return on equity of 7.81%. The company had revenue of $10.10 billion during the quarter, compared to analyst estimates of $12 billion. During the same period last year, the firm posted $0.10 EPS. Bunge’s revenue for the quarter was down 16.9% compared to the same quarter last year.

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 3rd. Shareholders of record on Tuesday, August 20th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 3.42%. The ex-dividend date is Monday, August 19th. Bunge’s dividend payout ratio is presently 73.53%.

A number of equities analysts have issued reports on BG shares. Zacks Investment Research raised shares of Bunge from a “sell” rating to a “hold” rating in a research report on Tuesday. ValuEngine lowered shares of Bunge from a “hold” rating to a “sell” rating in a research report on Saturday, May 4th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and three have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average price target of $73.33.

In other news, CEO Gregory A. Heckman bought 38,588 shares of the business’s stock in a transaction dated Tuesday, May 21st. The stock was purchased at an average cost of $51.93 per share, with a total value of $2,003,874.84. Following the acquisition, the chief executive officer now directly owns 55,054 shares in the company, valued at $2,858,954.22. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Henry Ward Iv Winship bought 4,000 shares of the business’s stock in a transaction dated Wednesday, May 22nd. The shares were purchased at an average cost of $51.40 per share, with a total value of $205,600.00. Following the completion of the acquisition, the director now owns 6,086 shares in the company, valued at $312,820.40. The disclosure for this purchase can be found here. Over the last ninety days, insiders have bought 212,588 shares of company stock valued at $10,882,275. Insiders own 3.18% of the company’s stock.

Several large investors have recently bought and sold shares of the company. Norges Bank acquired a new stake in Bunge in the 4th quarter valued at $69,827,000. FIL Ltd grew its stake in Bunge by 223.5% in the 1st quarter. FIL Ltd now owns 1,766,886 shares of the basic materials company’s stock valued at $93,768,000 after acquiring an additional 1,220,696 shares during the period. BNP Paribas Arbitrage SA grew its stake in Bunge by 849.1% in the 1st quarter. BNP Paribas Arbitrage SA now owns 355,054 shares of the basic materials company’s stock valued at $18,843,000 after acquiring an additional 317,644 shares during the period. Marathon Asset Management LLP grew its stake in Bunge by 24.8% in the 1st quarter. Marathon Asset Management LLP now owns 1,591,965 shares of the basic materials company’s stock valued at $84,486,000 after acquiring an additional 315,903 shares during the period. Finally, FMR LLC grew its stake in Bunge by 8.9% in the 4th quarter. FMR LLC now owns 2,959,161 shares of the basic materials company’s stock valued at $158,138,000 after acquiring an additional 243,072 shares during the period. 80.20% of the stock is owned by hedge funds and other institutional investors.

The business’s 50 day simple moving average is $56.71. The company has a market capitalization of $8.26 billion, a PE ratio of 21.48 and a beta of 0.86. The company has a current ratio of 1.40, a quick ratio of 0.66 and a debt-to-equity ratio of 0.76.

Bunge Company Profile (NYSE:BG)

Bunge Limited operates as an agribusiness and food company worldwide. It operates in five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains primarily wheat and corn; and vegetable oils and protein meals.

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