Brokerages Set Ambev S.A. (NYSE:ABEV) Target Price at $2.35

Key Points

• Ambev S.A. has received a consensus rating of "Reduce" from brokerages, including one sell recommendation and six hold recommendations.
• Barclays raised its target price for Ambev from $2.00 to $2.50, while UBS reduced its target from $2.50 to $2.20, indicating mixed signals about the stock's future.
• The company recently announced a dividend increase to $0.023, representing a significant yield of 660.0%, with the ex-dividend date set for August 11th.

Ambev S.A. (NYSE:ABEV - Get Free Report) has received an average rating of "Reduce" from the seven research firms that are currently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell rating and six have assigned a hold rating to the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $2.35.

ABEV has been the subject of a number of research analyst reports. Hsbc Global Res upgraded shares of Ambev to a "hold" rating in a research note on Friday, August 1st. HSBC reaffirmed a "hold" rating on shares of Ambev in a report on Friday, August 1st. Barclays boosted 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, UBS Group decreased their price target on shares of Ambev from $2.50 to $2.20 and set a "neutral" rating for the company in a report on Wednesday, August 20th.

Ambev Stock Up 1.6%

Shares of NYSE:ABEV traded up $0.04 during midday trading on Thursday, hitting $2.24. 9,176,762 shares of the stock were exchanged, compared to its average volume of 32,819,594. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.80 and a current ratio of 1.11. Ambev has a 52-week low of $1.76 and a 52-week high of $2.63. The business's fifty day simple moving average is $2.29 and its two-hundred day simple moving average is $2.34. The company has a market capitalization of $35.22 billion, a PE ratio of 13.91, a P/E/G ratio of 2.43 and a beta of 0.84.

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

Ambev Increases Dividend

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Talaria Asset Management Pty Ltd bought a new stake in shares of Ambev during the 4th quarter worth approximately $38,602,000. Bank of America Corp DE lifted its stake in Ambev by 201.7% in the 4th quarter. Bank of America Corp DE now owns 26,087,675 shares of the company's stock valued at $48,262,000 after purchasing an additional 17,440,564 shares during the last quarter. Two Sigma Advisers LP lifted its stake in Ambev by 329.6% in the 4th quarter. Two Sigma Advisers LP now owns 16,354,000 shares of the company's stock valued at $30,255,000 after purchasing an additional 12,546,800 shares during the last quarter. Two Sigma Investments LP lifted its stake in Ambev by 202.5% in the 4th quarter. Two Sigma Investments LP now owns 13,181,359 shares of the company's stock valued at $24,386,000 after purchasing an additional 8,823,911 shares during the last quarter. Finally, Russell Investments Group Ltd. lifted its stake in Ambev by 105.8% in the 1st quarter. Russell Investments Group Ltd. now owns 16,170,388 shares of the company's stock valued at $37,677,000 after purchasing an additional 8,312,561 shares during the last quarter. Institutional investors and hedge funds own 8.13% of the company's stock.

Ambev Company Profile

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.