Ambev (NYSE:ABEV) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Ambev to “Hold” from “Buy,” while the broader analyst consensus is “Reduce,” based on five Hold ratings and one Sell rating. The average price target is $3.08.
• Ambev’s shares opened at $2.87, below their 50-day and 200-day moving averages near $3.04–$3.05. In its latest quarter, the company met the $0.04 EPS estimate but reported revenue of $3.89 billion, below the $4.05 billion consensus.
• A company director sold 468,040 shares for approximately $1.44 million, reducing his ownership by 13.5%; institutional investors own 8.13% of Ambev’s stock.

Ambev (NYSE:ABEV - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

Other research analysts have also recently issued reports about the company. Scotiabank cut Ambev from a "sector outperform" rating to a "sector perform" rating in a research note on Wednesday, July 15th. UBS Group set a $2.85 price objective on Ambev in a research report on Tuesday, August 11th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Ambev in a report on Monday, August 3rd. Finally, Barclays increased their target price on Ambev from $3.00 to $3.50 and gave the company an "equal weight" rating in a research report on Wednesday, May 6th. Five analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $3.08.

Ambev Trading Up 1.4%

ABEV stock opened at $2.87 on Friday. Ambev has a 52 week low of $2.10 and a 52 week high of $3.45. The company has a market capitalization of $45.24 billion, a PE ratio of 14.35, a price-to-earnings-growth ratio of 2.06 and a beta of 0.65. The company's 50-day simple moving average is $3.04 and its 200 day simple moving average is $3.05. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.76 and a current ratio of 1.02.

Ambev (NYSE:ABEV - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.04 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.04. The business had revenue of $3.89 billion during the quarter, compared to analysts' expectations of $4.05 billion. Ambev had a return on equity of 17.48% and a net margin of 18.47%. As a group, sell-side analysts anticipate that Ambev will post 0.2 earnings per share for the current year.

Insider Activity at Ambev

In other news, Director Ricardo Manuel Frangat Moreira sold 468,040 shares of the stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $3.08, for a total transaction of $1,441,563.20. Following the completion of the sale, the director directly owned 3,000,000 shares in the company, valued at $9,240,000. This represents a 13.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website.

Institutional Investors Weigh In On Ambev

Several institutional investors and hedge funds have recently made changes to their positions in ABEV. First Trust Advisors LP bought a new stake in Ambev in the third quarter worth approximately $25,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Ambev during the 1st quarter worth approximately $26,000. IHT Wealth Management LLC acquired a new stake in shares of Ambev during the 4th quarter worth approximately $27,000. S Harris Financial Group LLC bought a new stake in shares of Ambev in the 4th quarter valued at $28,000. Finally, Royal Palms Capital LLC bought a new stake in shares of Ambev in the 4th quarter valued at $29,000. Institutional investors own 8.13% of the company's stock.

Ambev Company Profile

Ambev NYSE: ABEV is a Brazilian-based beverage company that produces, distributes and markets a broad portfolio of alcoholic and non-alcoholic drinks. The company's core business centers on brewing and selling beer, alongside a range of soft drinks, bottled water, energy drinks and other malt-based beverages. Headquartered in São Paulo, Ambev operates an integrated value chain that covers manufacturing, packaging, logistics and commercial sales to retail, on-premise and institutional customers.

The company traces its origins to the 1999 merger of two historic Brazilian breweries, and later became part of the broader global brewing group through subsequent industry consolidations.

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