Ambev (NYSE:ABEV) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Ambev to “hold” from “buy,” adding to a cautious analyst outlook. MarketBeat reports an average rating of “Reduce” and a consensus price target of $3.01.
• Ambev’s latest quarterly EPS of $0.05 matched expectations, but revenue of $4.17 billion fell short of the $4.21 billion consensus, while reports indicated profit declined 10% year over year.
• Barclays cut its price target from $3.50 to $3.00, while Ambev approved a new two-year program to repurchase up to 190 million shares, potentially supporting per-share value.

Ambev (NYSE:ABEV - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

ABEV has been the topic of a number of other research reports. Barclays cut their target price on shares of Ambev from $3.50 to $3.00 and set an "equal weight" rating on the stock in a research report on Friday. Bank of America downgraded shares of Ambev from a "neutral" rating to an "underperform" rating and set a $3.30 price target on the stock. in a research report on Wednesday, October 7th. Weiss Ratings downgraded Ambev from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday. UBS Group set a $2.85 price objective on shares of Ambev in a research report on Tuesday, August 11th. Finally, Scotiabank downgraded shares of Ambev from a "sector outperform" rating to a "sector perform" rating in a research report on Wednesday, July 15th. Four analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Ambev presently has an average rating of "Reduce" and a consensus target price of $3.01.

Ambev Stock Down 0.4%

Shares of ABEV opened at $2.66 on Friday. The company has a current ratio of 1.02, a quick ratio of 0.76 and a debt-to-equity ratio of 0.02. Ambev has a 12 month low of $2.28 and a 12 month high of $3.45. The firm's 50 day moving average is $3.02 and its 200-day moving average is $3.02. The stock has a market capitalization of $41.93 billion, a PE ratio of 14.05, a P/E/G ratio of 1.71 and a beta of 0.58.

Ambev (NYSE:ABEV - Get Free Report) last released its earnings results on Thursday, October 29th. The company reported $0.05 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.05. The company had revenue of $4.17 billion for the quarter, compared to analyst estimates of $4.21 billion. Ambev had a return on equity of 18.36% and a net margin of 17.80%. Equities research analysts forecast that Ambev will post 0.20 EPS for the current year.

Insider Activity

In related news, insider Carla Smith De Vasconcellos Crippa Prado sold 60,757 shares of Ambev stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $3.09, for a total value of $187,739.13. Following the completion of the transaction, the insider directly owned 80,707 shares in the company, valued at approximately $249,384.63. The trade was a 42.95% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Institutional Trading of Ambev

Several hedge funds and other institutional investors have recently bought and sold shares of ABEV. Envestnet Portfolio Solutions Inc. purchased a new position in shares of Ambev in the second quarter worth $32,000. Integrated Advisors Network LLC purchased a new position in shares of Ambev during the 1st quarter worth approximately $31,000. World Investment Advisors purchased a new stake in Ambev in the first quarter worth $32,000. Equitable Trust Co. bought a new position in shares of Ambev in the 1st quarter worth about $34,000. Finally, Global Wealth Strategies & Associates bought a new position in shares of Ambev during the second quarter valued at approximately $37,000. Hedge funds and other institutional investors own 8.13% of the company's stock.

Key Stories Impacting Ambev

Here are the key news stories impacting Ambev this week:

• Positive Sentiment: Ambev’s board approved a new two-year program to repurchase up to 190 million shares. The company also completed a prior program and canceled 279 million repurchased shares, which could support per-share value by reducing the share count. Ambev share buyback program
• Positive Sentiment: Quarterly earnings per share were $0.05, matching analyst expectations, while Ambev reported a 17.48% return on equity and an 18.47% net margin. Ambev fiscal third-quarter earnings
• Neutral Sentiment: Ambev filed its October Form 6-K with the U.S. Securities and Exchange Commission and discussed third-quarter results with analysts. The earnings-call materials provide additional detail on performance and the outlook, but the headline results were broadly in line with expectations. Ambev Form 6-K filing
• Negative Sentiment: Revenue of $4.17 billion fell short of the $4.21 billion consensus estimate, and reports characterized third-quarter profit as down 10%. The revenue miss and weaker profit trend likely outweighed the in-line EPS result. Ambev third-quarter profit report
• Negative Sentiment: Barclays lowered its price target for ABEV from $3.50 to $3.00 and maintained an “equal weight” rating. Although the new target still implies potential upside, the reduction signals more cautious expectations for the brewer’s growth and valuation. Barclays Ambev price target

About Ambev

Ambev SA is a Brazilian beverage company headquartered in São Paulo and one of the largest beverage producers in Latin America. Its principal business is the production, distribution and sale of beer, although it also offers soft drinks, carbonated beverages, bottled water, energy drinks and other non-alcoholic products.

The company's beer portfolio includes brands such as Brahma, Skol, Antarctica, Bohemia, Original, Budweiser, Stella Artois and Corona, with brand availability varying by market.

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