In the last week, one of the controllers of vivara (VIVA3) sold about 3% of its stake in company. Altogether, traded 7,075 million shares at BRL 21.66.
The news came shortly after the retailer released the 4Q22 balance sheet which, unlike the vast majority of retail companies, presented positive results.
However, after the sale of the stake, Vivara’s shares showed drop of more than 5% throughout the week. In view of this, the following question arises:
Is this a signal to stay away from the stock or a buying opportunity?
Below, I explain in more detail what is at stake in the case of Vivara.
Why did Vivara shares fall?
One of the causes of the asset’s fall may have been the fact that the shares were sold with a 2.4% discount in relation to the close of the day before trading.
In other words, the discount would be responsible for pulling up the share price, so much so that, on Friday (24), the asset recovered a good part of the week’s fall, closing the day with a up 4.27%.
On the other hand, when one of the majority shareholders of a company decides to sell its stake, it sends a “yellow signal” to many investors. After all, it is the departure of someone who has more information about the situation of that company.
Vivara is still a family business and, according to Empiricus Research analysts, one of the main reasons for the departure of one of the controllers was disagreements between the brothers about the company’s management.
In this scenario, the sale of the stake of one of the controllers has a direct impact on the performance of Vivara’s shares and, therefore, the asset may be affected for some more time, in the analysts’ view.
It turns out that the 7,075 million shares were just the first batch of a total of 13.2% of the company’s capital that will be sold on the market.
In this scenario, “knowing that you still have a relevant shareholder as a marginal seller prevents the stock from taking off. It won’t be tomorrow that this share will go up by 10%, 15%”, says Richard Camargo.
Is it time to buy or sell VIVA3?
the analysts Rodolfo Amstalden, Richard Camargo It is Ruy Hungary have been studying Vivara’s performance, growth prospects and share price.
This team has prepared a report for subscribers of the series “Microcap Alert”, by Empiricus Research, in which they say in all letters if is it worth it or not to include Vivara in the portfolio.
In general, only those who paid for this series can access analyst reports. But the good news is that you will be able to read this content without being a subscriber and for free.
A Empiricus Investimentos is offering as courtesy free access to the report on Vivara. Enough click on this link or the button below and follow the instructions.
You can rest assured that access to this report is 100% free.
Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
