Ambev (NYSE:ABEV) Stock Price Up 2.4% – Here’s Why

Ambev S.A. (NYSE:ABEV)’s stock price was up 2.4% during mid-day trading on Monday . The stock traded as high as $2.33 and last traded at $2.34. Approximately 2,472,320 shares changed hands during mid-day trading, a decline of 91% from the average daily volume of 26,181,355 shares. The stock had previously closed at $2.28.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on ABEV shares. Bank of America downgraded Ambev from a “buy” rating to a “neutral” rating in a research note on Friday, January 17th. StockNews.com began coverage on shares of Ambev in a research note on Monday, January 27th. They issued a “buy” rating on the stock. Citigroup reiterated a “neutral” rating on shares of Ambev in a research note on Wednesday, January 22nd. Finally, Barclays reduced their price target on shares of Ambev from $2.50 to $2.00 and set an “equal weight” rating for the company in a report on Tuesday, January 21st. Three investment analysts have rated the stock with a hold rating and two have given a buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $2.45.

Ambev Stock Performance

The company has a quick ratio of 0.89, a current ratio of 1.20 and a debt-to-equity ratio of 0.02. The firm has a 50-day moving average of $2.03 and a 200 day moving average of $2.12. The stock has a market capitalization of $36.79 billion, a P/E ratio of 12.97, a PEG ratio of 5.80 and a beta of 0.94.

Ambev (NYSE:ABEV) last issued its earnings results on Wednesday, February 26th. The company reported $0.05 earnings per share for the quarter, missing the consensus estimate of $0.06 by ($0.01). Ambev had a net margin of 17.02% and a return on equity of 16.12%. The business had revenue of $4.63 billion for the quarter, compared to analyst estimates of $22.42 billion. Research analysts anticipate that Ambev S.A. will post 0.18 EPS for the current fiscal year.

Ambev Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, April 14th. Investors of record on Tuesday, March 18th will be given a dividend of $0.0221 per share. This represents a $0.09 dividend on an annualized basis and a dividend yield of 3.78%. The ex-dividend date is Tuesday, March 18th. Ambev’s dividend payout ratio (DPR) is currently 52.94%.

Institutional Trading of Ambev

Several hedge funds have recently modified their holdings of the company. Cerity Partners LLC increased its holdings in Ambev by 61.7% during the 3rd quarter. Cerity Partners LLC now owns 202,835 shares of the company’s stock valued at $495,000 after purchasing an additional 77,423 shares in the last quarter. Daiwa Securities Group Inc. raised its holdings in shares of Ambev by 22.5% in the third quarter. Daiwa Securities Group Inc. now owns 212,000 shares of the company’s stock valued at $517,000 after buying an additional 39,000 shares during the last quarter. Bank of Montreal Can lifted its position in Ambev by 16.4% during the 3rd quarter. Bank of Montreal Can now owns 910,885 shares of the company’s stock worth $2,186,000 after buying an additional 128,439 shares in the last quarter. FMR LLC grew its holdings in Ambev by 35.5% during the 3rd quarter. FMR LLC now owns 78,604 shares of the company’s stock worth $192,000 after acquiring an additional 20,599 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Ambev by 34.0% in the 3rd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 382,600 shares of the company’s stock valued at $934,000 after acquiring an additional 97,150 shares in the last quarter. Institutional investors and hedge funds own 8.13% of the company’s stock.

About Ambev

Ambev SA, through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products in Brazil, Central America and Caribbean, Latin America South, and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Budweiser, Bud Light, Beck, Leffe, Hoegaarden, Balboa ICE, Balboa, Atlas Golden Light, Atlas, Bucanero, Cristal, Mayabe, Presidente, Presidente Light, Brahma Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Bud 66, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith’s, and Kokanee brands.