Ambev S.A. (NYSE:ABEV) Receives Consensus Recommendation of "Reduce" from Brokerages

Key Points

• Ambev S.A. has received an average recommendation of "Reduce" from analysts, with one sell rating and six hold ratings, and an average target price of $2.60 for the next 12 months.
• The company recently announced a dividend increase to $0.023, payable on October 14th, with an impressive yield of 660.0%.
• Institutional investors have significantly increased their stakes in Ambev, with Bank of America Corp DE growing its position by 201.7% in the last quarter alone.

Ambev S.A. (NYSE:ABEV - Get Free Report) has received a consensus rating of "Reduce" from the seven research firms that are covering the firm, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating and six have given a hold rating to the company. The average 1-year price target among analysts that have covered the stock in the last year is $2.60.

A number of brokerages have recently commented on ABEV. Barclays boosted their price objective on shares of Ambev from $2.00 to $2.50 and gave the stock an "equal weight" rating in a research report on Monday, May 12th. Wall Street Zen started coverage on shares of Ambev in a research report on Wednesday, April 23rd. They set a "buy" rating on the stock. HSBC restated a "hold" rating on shares of Ambev in a research note on Friday, August 1st. Hsbc Global Res upgraded shares of Ambev to a "hold" rating in a research note on Friday, August 1st. Finally, 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 research report on Wednesday, June 4th.

Institutional Investors Weigh In On Ambev

A number of hedge funds have recently made changes to their positions in the business. State of Wyoming boosted its holdings in shares of Ambev by 11.3% during the 1st quarter. State of Wyoming now owns 39,606 shares of the company's stock valued at $92,000 after buying an additional 4,030 shares in the last quarter. Signaturefd LLC raised its position in Ambev by 63.2% in the 2nd quarter. Signaturefd LLC now owns 12,712 shares of the company's stock worth $31,000 after buying an additional 4,924 shares during the last quarter. Jeppson Wealth Management LLC raised 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 worth $181,000 after buying an additional 5,250 shares during the last quarter. Tranquilli Financial Advisor LLC raised 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 worth $49,000 after buying an additional 5,685 shares during the last quarter. Finally, NewEdge Advisors LLC raised its position in Ambev by 51.4% in the 4th quarter. NewEdge Advisors LLC now owns 17,084 shares of the company's stock worth $32,000 after buying an additional 5,798 shares during the last quarter. 8.13% of the stock is currently owned by institutional investors.

Ambev Trading Down 1.1%

Shares of NYSE:ABEV traded down $0.03 during trading on Friday, hitting $2.19. 6,692,525 shares of the company's stock were exchanged, compared to its average volume of 33,297,570. The firm has a market cap of $34.43 billion, a P/E ratio of 13.66, a PEG ratio of 2.44 and a beta of 0.74. The firm has a 50-day moving average price of $2.37 and a two-hundred day moving average price of $2.29. 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 has a 1-year low of $1.76 and a 1-year high of $2.63.

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

Ambev Increases Dividend

The company also recently disclosed a -- dividend, which will be paid on Tuesday, October 14th. Shareholders of record on Monday, August 11th will be issued a dividend of $0.023 per share. The ex-dividend date of this dividend is Monday, August 11th. This represents a yield of 660.0%. This is a positive change from Ambev's previous -- dividend of $0.02. Ambev's payout ratio is presently 31.25%.

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.