Many stocks have been testing new highs in 2020, and one of the most notable is Grupo Financiero Galicia S.A. (GGAL). Currently, GGAL is trading at $11.50 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $13.58.
To add more color to this target, the company’s high over the last year is $39.22 and the low is $5.66. Over the last 52 weeks, GGAL is down -70.68% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, GGAL reported a profit of $175.74 million. Grupo Financiero Galicia S.A. also saw revenues increase to $594.67 million. In addition, GGAL has free cash flow of $0.0 as of 09-2019.
GGAL booked profit margins of 38.50%, its Return on Equity (ROE) is 52.60%, and its Return on Assets is 6.40%. All told, it is clear that, GGAL needs to be on your watchlist.
About Grupo Financiero Galicia S.A.
If readers are unfamiliar, Grupo Financiero Galicia S.A., a financial services holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, Regional Credit Cards, Insurance, and Other Businesses segments. The company’s products and services cover savings and current accounts, checking accounts, and credit and debit cards; personal and salary advance loans; mortgage loans; and online banking services. Its investments products and services cover fixed term, bonds and shares, FIMA funds, primary tenders, and buying and selling foreign currency; and insurance products and services cover car, home, mobile, bicycle, lifetime, protected bag, integral protection, and future fund. The company’s insurance products cover options for employees, company’s assets, agricultural activity, and contractual guarantees. As of December 31, 2019, it had 326 full service banking branches; 1,034 ATMs; and 1,020 self-service terminals. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. GGAL has a short ratio of 1.10 and outstanding shares of 142.68M.
GGAL has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.24 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 4.24. Investors should also keep an eye on sector updates as GGAL has historically followed its peers on positive news.
All told, Grupo Financiero Galicia S.A. GGAL has strung together solid data and demonstrated underlying fundamentals. At its current valuation, GGAL represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Grupo Financiero Galicia S.A. GGAL is now commanding a market cap of 2.17B and a float of 74.78M. GGAL is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of GGAL stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in GGAL, either long or short, and we have not been compensated for this article.