Compania Cervecerias Unidas (NYSE:CCU) Sees Strong Trading Volume - Should You Buy?

Key Points

• Compania Cervecerias Unidas experienced a significant spike in trading volume, with 404,847 shares traded, marking a 94% increase from the previous session.
• Scotiabank downgraded CCU from a "strong-buy" to a "hold" rating, while the consensus target price for the stock is now $9.40.
• Institutional investors have shown increased interest in CCU, with notable purchases and stake increases from several firms during the second quarter.

Compania Cervecerias Unidas, S.A. (NYSE:CCU - Get Free Report) shares saw strong trading volume on Tuesday . 404,847 shares were traded during trading, an increase of 94% from the previous session's volume of 209,084 shares.The stock last traded at $12.63 and had previously closed at $12.60.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Scotiabank downgraded shares of Compania Cervecerias Unidas from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 8th. Wall Street Zen downgraded shares of Compania Cervecerias Unidas from a "strong-buy" rating to a "buy" rating in a report on Friday, May 9th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus price target of $9.40.

Compania Cervecerias Unidas Trading Up 2.1%

The company has a debt-to-equity ratio of 0.68, a current ratio of 2.14 and a quick ratio of 1.43. The company has a market capitalization of $2.27 billion, a price-to-earnings ratio of 14.48, a price-to-earnings-growth ratio of 1.13 and a beta of 0.66. The business's 50 day simple moving average is $12.47 and its 200 day simple moving average is $13.67.

Institutional Investors Weigh In On Compania Cervecerias Unidas

Several hedge funds have recently made changes to their positions in the business. BLI Banque de Luxembourg Investments acquired a new position in shares of Compania Cervecerias Unidas during the 4th quarter valued at $7,141,000. Acadian Asset Management LLC grew its holdings in Compania Cervecerias Unidas by 130.1% during the 2nd quarter. Acadian Asset Management LLC now owns 487,149 shares of the company's stock worth $6,285,000 after acquiring an additional 275,435 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of Compania Cervecerias Unidas by 386.6% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 166,244 shares of the company's stock worth $2,148,000 after buying an additional 132,083 shares during the last quarter. Marshall Wace LLP lifted its position in shares of Compania Cervecerias Unidas by 83.8% in the 2nd quarter. Marshall Wace LLP now owns 255,380 shares of the company's stock worth $3,300,000 after buying an additional 116,418 shares during the last quarter. Finally, American Century Companies Inc. lifted its position in Compania Cervecerias Unidas by 172.2% in the 2nd quarter. American Century Companies Inc. now owns 173,672 shares of the company's stock valued at $2,244,000 after purchasing an additional 109,867 shares during the last quarter. Institutional investors and hedge funds own 24.07% of the company's stock.

About Compania Cervecerias Unidas

Compañía Cervecerías Unidas SA operates as a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company operates through three segments: Chile, International Business, and Wine. It produces and sells alcoholic and non-alcoholic beer under proprietary and licensed brands, as well as distributes Pernod Ricard products in non-supermarket retail stores.