Ambev (NYSE:ABEV) Downgraded by UBS Group to Strong Sell

Key Points

• UBS Group downgraded Ambev from a "hold" to a "strong sell" and set a $2.65 price objective, signaling an estimated ~13.3% downside from the current share price.
• Analyst coverage is mixed — one Buy, four Holds and one Sell — leaving Ambev with an average rating of "Hold" and a consensus target of $2.84.
• Insider De Lacerda sold 152,386 shares at about $2.85, even as institutions like Morgan Stanley, GQG and Goldman materially increased positions; the stock trades near $3.06 with a market cap of ~$48.1B and a PE around 17.

Ambev (NYSE:ABEV - Get Free Report) was downgraded by equities research analysts at UBS Group from a "hold" rating to a "strong sell" rating in a report released on Thursday, Marketbeat.com reports. They currently have a $2.65 price objective on the stock. UBS Group's price target points to a potential downside of 13.26% from the company's current price.

Other research analysts also recently issued reports about the company. Wall Street Zen downgraded Ambev from a "buy" rating to a "hold" rating in a research report on Monday, March 30th. Barclays lifted their price target on Ambev from $2.50 to $3.00 and gave the stock an "equal weight" rating in a research report on Tuesday, February 17th. Finally, Weiss Ratings raised shares of Ambev from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, March 5th. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $2.84.

Ambev Stock Down 2.4%

ABEV stock opened at $3.06 on Thursday. The company has a current ratio of 0.96, a quick ratio of 0.73 and a debt-to-equity ratio of 0.03. Ambev has a 1 year low of $2.10 and a 1 year high of $3.24. The company has a fifty day simple moving average of $3.00 and a 200 day simple moving average of $2.65. The firm has a market cap of $48.14 billion, a PE ratio of 16.97, a PEG ratio of 2.24 and a beta of 0.65.

Ambev (NYSE:ABEV - Get Free Report) last released its earnings results on Friday, February 13th. The company reported $0.05 earnings per share for the quarter, hitting analysts' consensus estimates of $0.05. The firm had revenue of $4.50 billion during the quarter, compared to analyst estimates of $4.28 billion. Ambev had a net margin of 17.75% and a return on equity of 16.41%. Sell-side analysts anticipate that Ambev will post 0.18 EPS for the current fiscal year.

Insider Activity at Ambev

In other news, insider De Lacerda Eduardo Cavalcanti sold 152,386 shares of the company's stock in a transaction dated Friday, March 27th. The shares were sold at an average price of $2.85, for a total transaction of $434,300.10. Following the completion of the transaction, the insider owned 223,340 shares of the company's stock, valued at approximately $636,519. This represents a 40.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ABEV. Morgan Stanley grew its stake in Ambev by 291.2% during the fourth quarter. Morgan Stanley now owns 45,462,628 shares of the company's stock worth $112,293,000 after buying an additional 33,842,540 shares during the last quarter. GQG Partners LLC grew its stake in Ambev by 9.1% during the fourth quarter. GQG Partners LLC now owns 172,969,655 shares of the company's stock worth $427,235,000 after buying an additional 14,468,963 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in Ambev by 248.1% during the fourth quarter. Goldman Sachs Group Inc. now owns 13,135,697 shares of the company's stock worth $32,445,000 after buying an additional 9,361,815 shares during the last quarter. CANADA LIFE ASSURANCE Co grew its stake in Ambev by 74.8% during the second quarter. CANADA LIFE ASSURANCE Co now owns 13,409,316 shares of the company's stock worth $32,624,000 after buying an additional 5,740,155 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA grew its stake in Ambev by 12.0% during the third quarter. Massachusetts Financial Services Co. MA now owns 36,058,376 shares of the company's stock worth $80,410,000 after buying an additional 3,864,844 shares during the last quarter. Institutional investors and hedge funds own 8.13% of the company's stock.

About Ambev

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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