Ambev (NYSE:ABEV) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Ambev from “hold” to “buy,” while Weiss Ratings also issued an upgrade. However, broader analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $3.13.
• Ambev shares opened at $3.19, near the consensus target, and the company reported quarterly EPS of $0.04 in line with estimates. Revenue of $3.89 billion fell short of the $4.05 billion analyst forecast.
• Insiders recently sold shares, including director Manuel Moreira’s $1.44 million sale and Carla Smith de Va Crippa Prado’s $187,739 sale, while institutional ownership stands at 8.13%.

Ambev (NYSE:ABEV - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday, Wall Street Zen reports.

A number of other research analysts have also recently commented on the company. Weiss Ratings upgraded Ambev from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday. Scotiabank lowered shares of Ambev from a "sector outperform" rating to a "sector perform" rating in a research note on Wednesday, July 15th. UBS Group set a $2.85 price objective on Ambev in a research note on Tuesday, August 11th. Finally, Bank of America reiterated an "underperform" rating and set a $3.30 price objective on shares of Ambev in a research note on Wednesday. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Ambev has an average rating of "Reduce" and a consensus target price of $3.13.

Ambev Stock Performance

Shares of ABEV stock opened at $3.19 on Friday. Ambev has a one year low of $2.10 and a one year high of $3.45. The company has a 50 day moving average price of $2.96 and a 200 day moving average price of $3.05. The firm has a market capitalization of $50.36 billion, a price-to-earnings ratio of 15.97, a price-to-earnings-growth ratio of 2.01 and a beta of 0.58. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.76 and a current ratio of 1.02.

Ambev (NYSE:ABEV - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $0.04 earnings per share for the quarter, hitting the consensus estimate of $0.04. The business had revenue of $3.89 billion for the quarter, compared to analyst estimates of $4.05 billion. Ambev had a return on equity of 17.48% and a net margin of 18.47%. Sell-side analysts anticipate that Ambev will post 0.21 EPS for the current year.

Insider Buying and Selling

In related news, Director Manuel Moreira sold 468,040 shares of the firm's stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $3.08, for a total transaction of $1,441,563.20. Following the completion of the sale, the director directly owned 3,000,000 shares in the company, valued at approximately $9,240,000. This trade represents a 13.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Carla Smith De Vasconcellos Crippa Prado sold 60,757 shares of the stock in a transaction 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 owned 80,707 shares of the company's stock, valued at $249,384.63. This trade represents a 42.95% decrease in their position. The disclosure for this sale is available in the SEC filing.

Institutional Trading of Ambev

Several large investors have recently added to or reduced their stakes in the company. DJE Kapital AG acquired a new stake in shares of Ambev during the 1st quarter valued at $14,778,000. First Eagle Investment Management LLC boosted its stake in shares of Ambev by 0.7% during the 2nd quarter. First Eagle Investment Management LLC now owns 349,323,217 shares of the company's stock worth $1,096,875,000 after acquiring an additional 2,338,660 shares in the last quarter. Renaissance Technologies LLC grew its holdings in Ambev by 6.5% during the first quarter. Renaissance Technologies LLC now owns 27,354,300 shares of the company's stock valued at $79,875,000 after purchasing an additional 1,674,900 shares during the last quarter. Engineers Gate Manager LP grew its stake in Ambev by 712.8% in the 2nd quarter. Engineers Gate Manager LP now owns 1,837,660 shares of the company's stock valued at $5,770,000 after buying an additional 1,611,577 shares during the last quarter. Finally, Cook & Bynum Capital Management LLC bought a new position in shares of Ambev in the second quarter worth about $4,251,588. 8.13% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Ambev

Here are the key news stories impacting Ambev this week:

• Positive Sentiment: Zacks identified Ambev as a potential growth stock, citing business attributes that could support stronger returns. The commentary may be encouraging investors looking for growth within the consumer-staples sector. Is Ambev a Solid Growth Stock?
• Positive Sentiment: Ambev’s balance sheet remains a relative strength, with debt-to-equity of just 0.02. The company also pays a modest dividend, supporting its appeal to income-oriented investors.
• Neutral Sentiment: Zacks compared Ambev’s performance with other consumer-staples companies, including Archer Daniels Midland, giving investors context on its year-to-date relative performance rather than introducing a new company-specific catalyst. Consumer Staples Performance Comparison
• Neutral Sentiment: Ambev reported no treasury-share transactions during September, indicating no recent buyback or share-issuance activity to influence the stock. No Treasury Share Transactions
• Negative Sentiment: Corporate Affairs Vice President Carla Smith de Va Crippa sold 60,757 shares for approximately $187,739, reducing her direct ownership by 42.95%. Although the sale was disclosed after the transaction, the sizable reduction can weigh on sentiment. Ambev Insider Share Sale
• Negative Sentiment: Brokerage sentiment remains cautious: Bank of America reaffirmed an “Underperform” rating with a $3.30 target, while the broader consensus is “Reduce,” with an average target of $3.13. This limits the upside implied by current valuation levels. Ambev Average Reduce Rating

Ambev Company Profile

Ambev SA is a Brazilian beverage company and one of the largest brewers in Latin America. The company produces, distributes and sells beer, carbonated soft drinks, nonalcoholic beverages and other drink products through a portfolio that includes brands such as Brahma, Skol, Antarctica, Bohemia, Budweiser, Stella Artois and Guaraná Antarctica.

Founded in 1999 through the merger of Companhia Antarctica Paulista and Companhia Cervejaria Brahma, Ambev became part of Anheuser-Busch InBev following the latter's combination with Anheuser-Busch in 2008.

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