Ambev (NYSE:ABEV) Shares Cross Above 200 Day Moving Average - Here's Why

Key Points

• Ambev shares moved above their 200-day moving average, trading as high as $3.16 and last changing hands near $3.125. The move came on heavy volume of more than 30.5 million shares.
• Analyst sentiment remains cautious overall, with an average rating of “Reduce” and an average price target of $3.09. Recent updates were mixed, including a upgrade from Wall Street Zen and a downgrade from Weiss Ratings.
• The company reported Q1 earnings in line with estimates at $0.05 per share, while revenue slightly missed forecasts. Ambev also announced a quarterly dividend of $0.0092 per share, implying a 1.2% annual yield.

Ambev S.A. (NYSE:ABEV - Get Free Report) passed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $2.90 and traded as high as $3.16. Ambev shares last traded at $3.1250, with a volume of 30,510,487 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the stock. Wall Street Zen raised shares of Ambev from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Weiss Ratings downgraded Ambev from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 6th. UBS Group increased their price target on Ambev from $2.65 to $2.90 and gave the company a "sell" rating in a research note on Thursday, May 14th. Finally, Barclays raised their price target on Ambev from $3.00 to $3.50 and gave the stock 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 assigned a Sell rating to the stock. According to MarketBeat, Ambev currently has an average rating of "Reduce" and an average price target of $3.09.

Ambev Trading Up 0.2%

The company has a market capitalization of $49.26 billion, a P/E ratio of 16.45, a PEG ratio of 1.79 and a beta of 0.64. The business has a 50 day moving average price of $3.15 and a 200 day moving average price of $2.90. The company has a current ratio of 1.03, a quick ratio of 0.78 and a debt-to-equity ratio of 0.02.

Ambev (NYSE:ABEV - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported $0.05 earnings per share for the quarter, hitting the consensus estimate of $0.05. The business had revenue of $4.32 billion for the quarter, compared to analyst estimates of $4.38 billion. Ambev had a net margin of 17.69% and a return on equity of 16.63%. Analysts anticipate that Ambev S.A. will post 0.21 EPS for the current year.

Ambev Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, January 11th. Stockholders of record on Wednesday, June 24th will be given a dividend of $0.0092 per share. This represents a $0.04 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Wednesday, June 24th. Ambev's dividend payout ratio (DPR) is currently 57.89%.

Insiders Place Their Bets

In other news, insider De Lacerda Eduardo Cavalcanti sold 152,386 shares of the business's stock in a transaction on Friday, March 27th. The shares were sold at an average price of $2.85, for a total value of $434,300.10. Following the completion of the transaction, the insider owned 223,340 shares of the company's stock, valued at $636,519. The trade was a 40.56% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Paulo Andre Zagman sold 136,250 shares of the company's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $3.41, for a total transaction of $464,612.50. Following the completion of the sale, the insider owned 230,535 shares of the company's stock, valued at approximately $786,124.35. This represents a 37.15% decrease in their position. The disclosure for this sale is available in the SEC filing.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. GQG Partners LLC lifted its holdings in shares of Ambev by 9.1% during the 4th quarter. GQG Partners LLC now owns 172,969,655 shares of the company's stock valued at $427,235,000 after purchasing an additional 14,468,963 shares in the last quarter. Morgan Stanley increased its stake in Ambev by 291.2% during the 4th quarter. Morgan Stanley now owns 45,462,628 shares of the company's stock worth $112,293,000 after purchasing an additional 33,842,540 shares in the last quarter. Bank of America Corp DE increased its stake in Ambev by 9.9% during the 2nd quarter. Bank of America Corp DE now owns 27,505,192 shares of the company's stock worth $66,288,000 after purchasing an additional 2,479,310 shares in the last quarter. Renaissance Technologies LLC raised its holdings in Ambev by 6.5% during the 1st quarter. Renaissance Technologies LLC now owns 27,354,300 shares of the company's stock worth $79,875,000 after buying an additional 1,674,900 shares during the period. Finally, Brandes Investment Partners LP raised its holdings in Ambev by 4.0% during the 4th quarter. Brandes Investment Partners LP now owns 22,600,124 shares of the company's stock worth $55,822,000 after buying an additional 874,657 shares during the period. 8.13% of the stock is owned by institutional investors and hedge funds.

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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