TIMB Shares Soar 7.14% on Strong Earnings, Revenue Growth

TIM (TIMB) shares surged 0.17% today, marking the second consecutive day of gains, with a cumulative increase of 7.14% over the past two days. The stock price reached its highest level since May 2024, with an intraday gain of 1.38%.

The strategy of buying TIMB shares after they reached a recent high and holding for one week resulted in a 3.29% return over the past five years, significantly underperforming the benchmark's 41.68% return. The strategy's Sharpe ratio was 0.53, indicating moderate returns and risk, with a maximum drawdown of -1.77% and a CAGR of 1.40%. The volatility was 2.66%, which added to the risk profile of the strategy.

TIM SA (TIMB) reported a 6.2% year-over-year increase in mobile revenue, driven by strong post-pay growth. This growth, coupled with a 6.7% year-over-year increase in EBITDA and margin expansion, has likely contributed positively to the stock price. The company's financial performance, particularly in mobile revenue and EBITDA growth, has been a key driver of investor confidence.

Barclays analyst Mathieu Robilliard increased the price target for TIM SA (TIMB) from $16.50 to $17.50. This upward revision in the price target has potentially influenced investor sentiment, contributing to the stock's recent gains. Positive analyst outlooks often serve as a catalyst for increased investor interest and stock price appreciation.

On May 5, 2025, TIM S.A. announced the approval of a R$ 300 million distribution to shareholders. This announcement has positively impacted the stock price due to anticipated shareholder returns. Strategic shareholder returns, such as dividends or buybacks, are often seen as a sign of a company's financial health and commitment to returning value to its investors.

TIM’s stock price rose 6% following the announcement of better-than-expected quarterly earnings. This strong financial performance has been a key driver of the stock's recent gains, as investors respond positively to the company's ability to exceed earnings expectations. The earnings report has reinforced investor confidence in TIM's financial health and growth prospects.