Ambev S.A. (NYSE:ABEV) Given Average Rating of "Reduce" by Analysts

Key Points

• Analysts remain cautious on Ambev: Six firms collectively rate the stock “Reduce,” including one sell and five hold ratings. The average 12-month price target is approximately $3.08, above the reported $2.79 opening price.
• Quarterly results were mixed: Ambev met the consensus EPS estimate at $0.04, but revenue of $3.89 billion fell short of the $4.05 billion forecast.
• Insider activity and dividend: Director Ricardo Manuel Frangat Moreira sold 468,040 shares for about $1.44 million. Ambev declared a quarterly dividend of $0.0092 per share, equivalent to an annualized yield of roughly 1.3%.

Shares of Ambev S.A. (NYSE:ABEV - Get Free Report) have been given a consensus recommendation of "Reduce" by the six research firms that are covering the firm, MarketBeat.com reports. One analyst has rated the stock with a sell rating and five have given a hold rating to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $3.0767.

Several equities analysts have weighed in on ABEV shares. Scotiabank downgraded shares of Ambev from a "sector outperform" rating to a "sector perform" rating in a report on Wednesday, July 15th. Barclays increased their price target on shares of Ambev from $3.00 to $3.50 and gave the company an "equal weight" rating in a research report on Wednesday, May 6th. Weiss Ratings reissued a "hold (c+)" rating on shares of Ambev in a research note on Monday, August 3rd. UBS Group set a $2.85 price objective on Ambev in a research report on Tuesday, August 11th. Finally, Wall Street Zen raised Ambev from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st.

Insider Buying and Selling at Ambev

In other news, Director Ricardo Manuel Frangat Moreira sold 468,040 shares of the company's stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $3.08, for a total value of $1,441,563.20. Following 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

Institutional Trading of Ambev

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Integrated Wealth Concepts LLC purchased a new position in shares of Ambev during the first quarter valued at approximately $26,000. Millennium Management LLC increased its holdings in Ambev by 62.5% in the 1st quarter. Millennium Management LLC now owns 2,399,472 shares of the company's stock valued at $5,591,000 after purchasing an additional 922,566 shares in the last quarter. Goldman Sachs Group Inc. raised its position in Ambev by 13.2% in the first quarter. Goldman Sachs Group Inc. now owns 5,000,107 shares of the company's stock valued at $11,650,000 after purchasing an additional 582,153 shares during the period. Focus Partners Wealth purchased a new position in Ambev in the first quarter valued at about $33,000. Finally, Acadian Asset Management LLC purchased a new position in Ambev in the first quarter valued at about $264,000. Hedge funds and other institutional investors own 8.13% of the company's stock.

Ambev Stock Up 0.5%

Ambev stock opened at $2.79 on Thursday. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.76 and a current ratio of 1.02. The firm has a market capitalization of $44.05 billion, a price-to-earnings ratio of 13.97, a price-to-earnings-growth ratio of 2.03 and a beta of 0.65. Ambev has a fifty-two week low of $2.10 and a fifty-two week high of $3.45. The stock's fifty day moving average is $3.06 and its two-hundred day moving average is $3.05.

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

Ambev Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, January 11th. Shareholders of record on Wednesday, September 23rd will be given a dividend of $0.0092 per share. The ex-dividend date of this dividend is Wednesday, September 23rd. This represents a $0.04 annualized dividend and a yield of 1.3%. Ambev's dividend payout ratio (DPR) is presently 10.00%.

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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