Is Banco Latinoamericano de Comerc (NYSE:BLX) Overbought?

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Banco Latinoamericano de Comerc (NYSE:BLX) has reached overbought status with a 14-day RSI of 80.42.

The Relative Strength Index (RSI) is a recognized technical indicator used to assess the strength and weakness of momentum in price action. RSI levels above 70 are considered overbought and stocks are considered oversold at levels under 30. Overbought is a technical condition that occurs when prices are considered too high and the probability of decline is higher.

Volatility

(NYSE:BLX) currently has a beta of 1.58 making it more volatile than the market overall which by definition has a beta of 1. Stocks with a beta lower than the market are less risky than the market while those with a higher beta are more risky than the market over the long haul.

The stock’s Average True Range (ATR) is sitting at 0.38. The ATR is a short term indicator of volatility. It doesn’t indicate direction, just proclivity for motion.

Company shares last traded at $28.86 barely above $26.74, the stock’s 50 day moving average and a bit higher than the 200 day moving average of $27.41. The 50 day moving average was up by +7.95% whereas the 200 day moving average was up $1.45 or +5.31%.

Short Interest

Investors are more bearish on shares of the company of late if you watch the rise in short interest. The firm realized a rise in short interest from August 15, 2017 to August 31, 2017 of 15.18%. Short interest increased from 579,137 to 667,034 over that timeframe. With short interest at 667,034 and short average daily volume at 89,424, days to cover is 7.0 and the short interest percentage is 0.02% as of August 31.

Recent Analyst Ratings

On July 21 the stock rating was downgraded from “Neutral” to “Underweight” in an announcement from JP Morgan.

The company also recently announced a dividend paid on Thursday the 17th of August 2017. The dividend was $0.385 per share for the quarter which comes to $1.54 on an annualized basis. This dividend represents a yield of $5.43 which is the dividend as a percentage of the current share price. The ex-dividend date was Monday the 31st of July 2017.

The company’s P/E ratio is 13.81 and market capitalization is 1.14B. As of the latest earnings report the EPS was $2.09 and is expected to be $2.20 for the current year with 39,361,000 shares outstanding. Next quarter’s EPS is forecasted at $0.60 with next year’s EPS projected to be $2.56.

Company Information

Banco Latinoamericano de Comercio Exterior, S.A. (the Bank), launched on January 19, 1978, is a specialized multinational bank. The Bank is established to support the financing of trade and economic integration in Latin America and the Caribbean. The Company operates in two segments: Commercial and Treasury. The Bank has offices in Buenos Aires, Argentina; Mexico City and Monterrey, Mexico; Lima, Peru, and Bogota, Colombia. The Bank serves a range of sectors, including oil and gas (upstream, integrated and downstream), agribusiness, food processing and manufacturing. Its products and services are categorized into three main areas: Financial Intermediation Business, Structuring and Syndications Business, and Treasury. The financial intermediation Business comprises trade and working capital. Trade consists of foreign trade products, such as short and medium term instruments that help drive the cross-border activity of various corporations. Working Capital consist of structured credit and lending facilities for short and medium-term financing of supply chain, materials and equipment, and inventories, across a range of activity sectors. The syndication and structuring business offers financial solutions designed to meet clients’ needs, and provides access to structured funding for a base of financial institutions and companies in Latin America..