IRB Brasil share (IRBR3) rises 8%. What’s happening?

IRB Brasil share (IRBR3) rises 8.93% and leads highs.  What's happening?
IRB Brazil: Photo: Publicity

In the Ibovespa session this Wednesday (10), the stock of IRB Brazil (IRBR3) increased 8.93% at the close, quoted at R$ 2.44, leading highs.

Although the company has not disclosed any material fact, the market is awaiting the results of the second quarter of 2022 (2Q22) from IRB Brasil, postponed to August 15th.

About the rise of IRB Brazil sharesWaldir Morgado, partner at Nexgen Capital, explains: “We imagine that it is because of the expectation of this balance sheet and also because the company is being negotiated at a very high discount.”

On July 21, the company announced that it had registered a loss of R$273.1 million in May, compared to a profit of R$7.5 million in the same period in 2021.

The results, disclosed in a note, add to a series of mishaps experienced by the company throughout 2022. In the first five months of this year alone, the company has already accumulated a net loss of R$ 285.3 million. In the same period of the previous year, the company’s performance was very different — with its net income reaching R$ 9.4 million.

On the day of the release, the market reacted badly to the announcement, which led to a drop of more than 7% in the trading of the following day. In June, the shares of the IRB came to accumulate a fall of 24%.

Caique Stein, CNPI-T at DV Invest, said that IRB Brasil “is under considerable pressure from the selling end, with many investors shorting the paper. That is, selling the stock without having it in the portfolio, which makes the price really pressured further down.”

According to the IRB, the issued award in May 2022, it fell 3.7% compared to May of the previous year, totaling R$564.2 million. In the domestic market, the premium increased by 8.4%, but abroad it had a radical drop of 27.4%, reaching R$ 143.6 million.

Between January and May 2022, the award issued by the IRB Brazil was R$ 3.122 billion, down 5.5%, with growth of 11.2% in Brazil and a reduction of 25% worldwide.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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