Ambev (NYSE:ABEV) Shares Gap Down - Here's Why

Key Points

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Ambev S.A. (NYSE:ABEV - Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $2.30, but opened at $2.16. Ambev shares last traded at $2.20, with a volume of 19,284,816 shares.

Analysts Set New Price Targets

Several research analysts have recently commented on ABEV shares. Wall Street Zen started coverage on shares of Ambev in a research note on Wednesday, April 23rd. They set a "buy" rating on the stock. HSBC reaffirmed a "hold" rating on shares of Ambev in a report on Friday. UBS Group upped their price objective on shares of Ambev from $2.60 to $2.70 and gave the stock a "neutral" rating in a report on Wednesday, June 4th. Barclays increased their price target on shares of Ambev from $2.00 to $2.50 and gave the company an "equal weight" rating in a report on Monday, May 12th. Finally, Morgan Stanley downgraded shares of Ambev from an "equal weight" rating to an "underweight" rating in a report on Monday, April 7th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and one has assigned a buy rating to the company's stock. According to MarketBeat, Ambev currently has an average rating of "Hold" and an average price target of $2.60.

Ambev Stock Up 2.1%

The business's fifty day moving average price is $2.41 and its 200 day moving average price is $2.27. The company has a market capitalization of $35.06 billion, a P/E ratio of 13.91, a P/E/G ratio of 2.31 and a beta of 0.74. The company has a current ratio of 1.11, a quick ratio of 0.80 and a debt-to-equity ratio of 0.02.

Ambev (NYSE:ABEV - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.03 EPS for the quarter, hitting analysts' consensus estimates of $0.03. The company had revenue of $3.59 billion during the quarter, compared to the consensus estimate of $21.84 billion. Ambev had a net margin of 16.18% and a return on equity of 15.39%. As a group, equities research analysts predict that Ambev S.A. will post 0.18 earnings per share for the current fiscal year.

Ambev Cuts Dividend

The company also recently announced a -- dividend, which was paid on Thursday, July 17th. Investors of record on Monday, May 19th were given a dividend of $0.0219 per share. The ex-dividend date was Monday, May 19th. This represents a dividend yield of 500.0%. Ambev's dividend payout ratio (DPR) is 68.75%.

Institutional Investors Weigh In On Ambev

A number of hedge funds have recently made changes to their positions in the company. State of Wyoming increased its position in shares of Ambev by 11.3% during the 1st quarter. State of Wyoming now owns 39,606 shares of the company's stock worth $92,000 after purchasing an additional 4,030 shares in the last quarter. Signaturefd LLC increased its position in shares of Ambev by 63.2% during the 2nd quarter. Signaturefd LLC now owns 12,712 shares of the company's stock worth $31,000 after purchasing an additional 4,924 shares in the last quarter. Jeppson Wealth Management LLC increased its position in Ambev by 7.5% in the 2nd quarter. Jeppson Wealth Management LLC now owns 75,205 shares of the company's stock valued at $181,000 after acquiring an additional 5,250 shares in the last quarter. Tranquilli Financial Advisor LLC increased its position in Ambev by 37.3% in the 1st quarter. Tranquilli Financial Advisor LLC now owns 20,943 shares of the company's stock valued at $49,000 after acquiring an additional 5,685 shares in the last quarter. Finally, NewEdge Advisors LLC increased its position in Ambev by 51.4% in the 4th quarter. NewEdge Advisors LLC now owns 17,084 shares of the company's stock valued at $32,000 after acquiring an additional 5,798 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.