Itau Unibanco ( (ITUB) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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Itau Unibanco shares climbed as investors focused on the bank’s move to protect shareholder returns despite a tougher tax backdrop. The bank adjusted its gross interest on capital payments to offset higher withholding tax, so investors receive roughly the same net cash, and it formalized a clearer payout policy that ties future distributions to capital levels, profitability and regulatory demands. Itau also tightened its trading and disclosure rules in a bid to strengthen corporate governance and give investors better visibility into how the bank is run. Analyst views remain divided: solid revenue growth, strong profitability and an attractive dividend yield support the stock’s momentum, but concerns about leverage, tighter cash flow and evolving regulatory and tax conditions temper expectations for further gains.
More about Itau Unibanco
YTD Price Performance: 17.18%
Average Trading Volume: 20,458,751
Technical Sentiment Signal: Buy
Current Market Cap: $88.82B
For further insights into ITUB stock on TipRanks’ Stock Analysis page.
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