Banco Santander (Brasil) S.A. (BSBR) has been making waves in the financial world, with hedge funds taking notice of its potential. As of the end of February 2025, 8 hedge funds were bullish on BSBR, indicating a positive sentiment towards the bank's prospects. In this article, we will delve into the reasons behind this interest and explore whether BSBR is indeed one of the best bank penny stocks to buy according to hedge funds.



Financial Performance and Market Trends

BSBR has a market capitalization of $14.96 billion, a P/E ratio of 5.36, and a beta of 1.01. Its debt-to-equity ratio is 0.25, current ratio is 0.30, and quick ratio is 0.30. The stock has a 1-year low of $3.75 and a 1-year high of $6.44. The 50-day simple moving average is $4.23, and the 200-day simple moving average is $4.90.

To compare BSBR's financials and market trends with other bank penny stocks, let's consider General Dynamics Corporation (NYSE:GD), Aon plc (NYSE:AON), and Dollar General Corp. (NYSE:DG). These companies have market capitalizations of $64.27 billion, $41.47 billion, and $51.24 billion, respectively. Their P/E ratios are 21.45, 22.54, and 20.47, while their P/E/G ratios are 2.47, 2.55, and 2.35, and their betas are 0.73, 1.04, and 0.44, respectively.

Comparing these metrics, we can see that BSBR has a lower market capitalization, P/E ratio, and beta compared to GD, AON, and DG. This suggests that BSBR may be undervalued relative to these other bank penny stocks. Additionally, BSBR's debt-to-equity ratio is lower than GD's and AON's, indicating a stronger balance sheet. However, BSBR's current and quick ratios are lower than GD's and AON's, which could indicate liquidity concerns.

In terms of market trends, BSBR's stock price has been volatile in the past year, with a low of $3.75 and a high of $6.44. This volatility is similar to that of GD and AON, but DG has shown more consistent growth over the past year. BSBR's 50-day and 200-day simple moving averages are higher than GD's and AON's, but lower than DG's, suggesting that BSBR's stock price has been more volatile than GD's and AON's, but less volatile than DG's.



Hedge Fund Interest and Sentiment

The flat hedge fund sentiment towards BSBR at the end of the last quarter may indicate caution among some investors. However, the fact that 8 hedge funds are bullish on the stock suggests that there is still a level of confidence among some of the most sophisticated investors in the market regarding the company's prospects. Some of the largest hedge funds with stakes in BSBR include Renaissance Technologies, Millennium Management, Engineers Gate Manager, AQR Capital Management, and Schonfeld Strategic Advisors.



Analyst Ratings and Price Targets

Analysts have provided mixed ratings for BSBR. StockNews.com downgraded shares of BSBR from a "buy" rating to a "hold" rating in a report on Tuesday, November 26th. Bank of America cut shares of BSBR from a "buy" rating to a "neutral" rating in a research note on Tuesday, December 10th. However, JPMorgan Chase & Co. upgraded shares of BSBR from a "neutral" rating to an "overweight" rating and decreased their price target for the stock from $7.00 to $6.00 in a research note on Monday, November 25th.



Conclusion

Banco Santander (Brasil) S.A. (BSBR) appears to be an attractive penny stock for hedge funds due to its significant institutional ownership, hedge fund interest, dividend payout, analyst ratings, price history, and valuation. However, the flat hedge fund sentiment at the end of the last quarter may indicate caution among some investors. As always, it is important to conduct thorough research and consider multiple factors before making any investment decisions.