Compania Cervecerias Unidas, S.A. (NYSE:CCU) Receives Consensus Recommendation of "Strong Sell" from Brokerages

Key Points

• Analysts' consensus rates Compania Cervecerias Unidas as a Strong Sell (five analysts: three sell, two hold) with an average 12‑month price target of $12.00.
• The stock opened at $12.33 and trades near its 50‑ and 200‑day averages (~$12.54 and $12.91) with a $2.28B market cap and a 1‑year range of $10.71–$15.75; the company reported $0.33 EPS on $948.1M revenue last quarter with ROE 7.2% and a net margin of 4.03%.

Compania Cervecerias Unidas, S.A. (NYSE:CCU - Get Free Report) has received an average rating of "Strong Sell" from the five analysts that are presently covering the firm, MarketBeat Ratings reports. Three research analysts have rated the stock with a sell recommendation and two have assigned a hold recommendation to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $12.00.

CCU has been the subject of several recent analyst reports. Zacks Research downgraded Compania Cervecerias Unidas from a "hold" rating to a "strong sell" rating in a research note on Wednesday, April 1st. JPMorgan Chase & Co. raised their target price on Compania Cervecerias Unidas from $10.00 to $14.00 and gave the company an "underweight" rating in a research note on Monday, February 2nd. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Compania Cervecerias Unidas in a research note on Friday, March 27th.

Compania Cervecerias Unidas Stock Up 0.8%

Shares of Compania Cervecerias Unidas stock opened at $12.33 on Friday. The business has a 50-day moving average of $12.54 and a 200-day moving average of $12.91. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.90 and a quick ratio of 1.34. The company has a market capitalization of $2.28 billion, a PE ratio of 18.40, a P/E/G ratio of 3.74 and a beta of 0.56. Compania Cervecerias Unidas has a 1-year low of $10.71 and a 1-year high of $15.75.

Compania Cervecerias Unidas (NYSE:CCU - Get Free Report) last announced its earnings results on Saturday, February 14th. The company reported $0.33 earnings per share for the quarter. The company had revenue of $948.09 million during the quarter. Compania Cervecerias Unidas had a return on equity of 7.20% and a net margin of 4.03%. As a group, equities analysts forecast that Compania Cervecerias Unidas will post 0.68 EPS for the current fiscal year.

Hedge Funds Weigh In On Compania Cervecerias Unidas

A number of hedge funds have recently bought and sold shares of CCU. Arax Advisory Partners grew its stake in Compania Cervecerias Unidas by 917.9% in the fourth quarter. Arax Advisory Partners now owns 2,270 shares of the company's stock worth $29,000 after purchasing an additional 2,047 shares in the last quarter. Parallel Advisors LLC grew its stake in Compania Cervecerias Unidas by 69.1% in the fourth quarter. Parallel Advisors LLC now owns 2,557 shares of the company's stock worth $33,000 after purchasing an additional 1,045 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in Compania Cervecerias Unidas by 1,252.7% in the second quarter. EverSource Wealth Advisors LLC now owns 3,233 shares of the company's stock worth $42,000 after purchasing an additional 2,994 shares in the last quarter. First Horizon Corp acquired a new position in Compania Cervecerias Unidas in the third quarter worth about $60,000. Finally, Rhumbline Advisers grew its stake in Compania Cervecerias Unidas by 12.7% in the third quarter. Rhumbline Advisers now owns 7,277 shares of the company's stock worth $88,000 after purchasing an additional 822 shares in the last quarter. 24.07% of the stock is currently owned by institutional investors and hedge funds.

About Compania Cervecerias Unidas

Compañía Cervecerías Unidas SA NYSE: CCU is a Chile-based beverages company with operations across Latin America. The company engages in the production, marketing and distribution of beer, soft drinks, wines, mineral water and other non-alcoholic beverages. Through a combination of owned brands and licensing agreements, CCU serves both domestic and export markets with a diversified portfolio designed to meet evolving consumer tastes.

In its beer segment, CCU produces flagship brands such as Cristal, Escudo and Royal Guard, while also brewing international labels under license, including Heineken in select markets.

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