Ambev (NYSE:ABEV) Shares Gap Up - Here's What Happened

Key Points

• Shares gapped up: Ambev opened at $3.24 (prior close $2.90) and last traded at $3.3450 on volume of about 10.2 million shares.
• Mixed analyst sentiment: Ratings range from Buy (Weiss) to Sell (UBS) with Barclays raising its target to $3, but the consensus rating is Hold and the consensus target price is $2.84.
• Quarterly results showed EPS of $0.05 that met estimates while revenue of $4.32B slightly missed the $4.36B consensus, and an insider sold 152,386 shares (a 40.56% reduction in their stake) in late March.

Ambev S.A. (NYSE:ABEV - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $2.90, but opened at $3.24. Ambev shares last traded at $3.3450, with a volume of 10,197,184 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on ABEV shares. Weiss Ratings upgraded Ambev from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, March 5th. Barclays raised their target price on Ambev from $2.50 to $3.00 and gave the company an "equal weight" rating in a research report on Tuesday, February 17th. Wall Street Zen downgraded Ambev from a "buy" rating to a "hold" rating in a research report on Monday, March 30th. Finally, UBS Group set a $2.65 target price on Ambev and gave the company a "sell" rating in a research report on Thursday, April 16th. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Ambev currently has an average rating of "Hold" and a consensus target price of $2.84.

Ambev Stock Performance

The stock has a market cap of $53.83 billion, a PE ratio of 18.97, a P/E/G ratio of 2.08 and a beta of 0.61. The company has a quick ratio of 0.73, a current ratio of 0.96 and a debt-to-equity ratio of 0.03. The stock has a 50-day moving average of $2.98 and a 200 day moving average of $2.71.

Ambev (NYSE:ABEV - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.05 EPS for the quarter, hitting analysts' consensus estimates of $0.05. Ambev had a return on equity of 16.41% and a net margin of 17.75%.The firm had revenue of $4.32 billion for the quarter, compared to the consensus estimate of $4.36 billion. Equities analysts predict that Ambev S.A. will post 0.19 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider De Lacerda Eduardo Cavalcanti sold 152,386 shares of Ambev stock in a transaction that occurred on Friday, March 27th. The stock was sold at an average price of $2.85, for a total transaction of $434,300.10. Following the transaction, the insider owned 223,340 shares in the company, valued at approximately $636,519. This trade represents a 40.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link.

Hedge Funds Weigh In On Ambev

A number of institutional investors have recently added to or reduced their stakes in the stock. Advisors Preferred LLC purchased a new position in Ambev during the first quarter worth approximately $391,000. Sanctuary Advisors LLC lifted its position in Ambev by 28.4% during the first quarter. Sanctuary Advisors LLC now owns 120,278 shares of the company's stock worth $351,000 after buying an additional 26,572 shares in the last quarter. Checchi Capital Advisers LLC lifted its position in Ambev by 17.3% during the first quarter. Checchi Capital Advisers LLC now owns 47,498 shares of the company's stock worth $139,000 after buying an additional 7,004 shares in the last quarter. Bleakley Financial Group LLC increased its stake in Ambev by 29.1% during the first quarter. Bleakley Financial Group LLC now owns 258,322 shares of the company's stock worth $754,000 after acquiring an additional 58,296 shares during the last quarter. Finally, ARGA Investment Management LP increased its stake in Ambev by 62.0% during the first quarter. ARGA Investment Management LP now owns 967,134 shares of the company's stock worth $2,824,000 after acquiring an additional 370,112 shares during the last quarter. Hedge funds and other 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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