Is BBVA Banco Frances S.A. (NYSE:BFR) Stock Overbought?

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BBVA Banco Frances S.A. (NYSE:BFR) is at an overbought level with an RSI(14) at 80.27.

The Relative Strength Index (RSI) is a recognized technical indicator used to determine strengthening and weakening momentum in stock movements. 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

BBVA Banco Frances S.A. has a beta of 0.62 meaning it is less volatile than the market as a whole that has a beta of 1. Stocks with beta’s lower than 1 are less risky and those with a higher beta are more risky than the market over the long haul.

The stock’s Average True Range (ATR) is 0.52. The ATR is a short term measure of volatility. It can’t tell you the direction of the stock but indicates how likely the price is to change.

It is currently trading at $19.61 much higher than the 50 day moving average which is $16.97 and barely above the 200 day moving average of $17.89. The 50 day moving average was up $2.64 and the 200 day average was up $1.72.

Short Interest

Traders are more bullish on the company recently as implied by the motion in short interest. The company realized a fall in short interest of -5.84% as of August 31, 2017 from the last reporting period. Short shares decreased from 204,681 to 192,728 over that timeframe. The short-interest ratio decreased to 0.0 and the percentage of shorted shares is 0.00% as of August 31.

The company also recently announced a dividend for shareholders that was paid on Friday the 18th of August 2017. The dividend payment was $0.065 per share for the quarter which comes to $0.26 on an annualized basis. The dividend yield was $1.37. The ex-dividend date was set for Tuesday the 8th of August 2017.

The most current P/E ratio is 21.287 and market cap is 3.51B. In the latest earnings report the EPS was $0.92 and is projected to be $1.19 for the current year with 178,959,000 shares outstanding. Next quarter’s EPS is estimated at $0.35 and the next full year EPS is anticipated to be $1.60.

Company Information

BBVA Banco Frances S.A. (the Bank), launched on December 6, 1886, is a provider of financial services to large corporations, small and medium-size companies (SMEs), as well as individual customers. The Bank is focused on the financial sector, through its activities related to banking/financial, pension fund manager and insurance. The Bank has all its operations, property and customers located in Argentina. As part of its business, the Bank conducts capital markets and securities operations directly in the over-the-counter market and indirectly in Bolsa de Comercio de Buenos Aires (BCBA). The Bank has approximately 285 attention-to-clients units, 251 of which are retail branches and 34 are specialized in the middle-market segment and institutions, while corporate banking is divided by industry, such as consumer, heavy industries and energy. It also has over 14 in-company branches, one point of sale outlet and one point of express attention, approximately 694 automated teller machines (ATMs) and over 797 self-service terminals (ATS), a telephone banking service, an Internet banking service called Frances Net, and an application for smartphones..