Ambev S.A. (NYSE:ABEV) Stock Has Consensus Target Price of $3.13

Key Points

• Analysts are cautious on Ambev: Six firms have a consensus “Reduce” rating, with two sells and four holds. The average 12-month price target is $3.13, below the reported opening price of $3.19.
• Ambev reported quarterly EPS of $0.04, in line with estimates, while revenue of $3.89 billion fell short of the $4.05 billion consensus forecast. Analysts expect full-year EPS of approximately $0.20.
• The company declared a quarterly dividend of $0.0092 per share, equivalent to an annualized dividend of about $0.04 and a 1.2% yield; insiders also recently sold shares.

Ambev S.A. (NYSE:ABEV - Get Free Report) has been given a consensus recommendation of "Reduce" by the six research firms that are currently covering the stock, Marketbeat reports. Two analysts have rated the stock with a sell rating and four have given a hold rating to the company. The average 12 month price target among analysts that have covered the stock in the last year is $3.13.

A number of equities research analysts have recently commented on ABEV shares. Scotiabank cut Ambev from a "sector outperform" rating to a "sector perform" rating in a research note on Wednesday, July 15th. Wall Street Zen cut shares of Ambev from a "buy" rating to a "hold" rating in a research note on Saturday, August 22nd. Bank of America reissued an "underperform" rating and set a $3.30 price objective on shares of Ambev in a research report on Wednesday. Weiss Ratings restated a "hold (c+)" rating on shares of Ambev in a research note on Monday, August 3rd. Finally, UBS Group set a $2.85 target price on shares of Ambev in a research note on Tuesday, August 11th.

Ambev Price Performance

Shares of NYSE ABEV opened at $3.19 on Friday. Ambev has a fifty-two week low of $2.10 and a fifty-two week high of $3.45. The company has a 50 day simple moving average of $2.96 and a two-hundred day simple moving average of $3.05. The company has a market capitalization of $50.20 billion, a price-to-earnings ratio of 15.92, a P/E/G ratio of 2.02 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 quarterly earnings results on Wednesday, July 29th. The company reported $0.04 EPS for the quarter, hitting analysts' consensus estimates of $0.04. Ambev had a return on equity of 17.48% and a net margin of 18.47%.The firm had revenue of $3.89 billion for the quarter, compared to analysts' expectations of $4.05 billion. Analysts expect that Ambev will post 0.2 EPS for the current fiscal year.

Ambev Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, January 11th. Investors of record on Wednesday, September 23rd will be given a $0.0092 dividend. The ex-dividend date of this dividend is Wednesday, September 23rd. This represents a $0.04 annualized dividend and a yield of 1.2%. Ambev's dividend payout ratio is 15.00%.

Insider Buying and Selling at Ambev

In other Ambev news, Director Manuel Moreira sold 468,040 shares of Ambev stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $3.08, for a total value of $1,441,563.20. Following the completion of the sale, the director owned 3,000,000 shares of the company's stock, valued at approximately $9,240,000. This trade represents a 13.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Prado Carla Smith De Va Crippa sold 60,757 shares of the business's stock in a transaction on Thursday, September 3rd. The stock was 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 represents a 42.95% decrease in their position. The SEC filing for this sale provides additional information.

Hedge Funds Weigh In On Ambev

A number of hedge funds have recently bought and sold shares of the business. S Harris Financial Group LLC purchased a new stake in shares of Ambev during the 4th quarter valued at about $28,000. Integrated Advisors Network LLC bought a new position in Ambev during the first quarter valued at approximately $31,000. World Investment Advisors bought a new position in Ambev during the first quarter valued at approximately $32,000. Envestnet Portfolio Solutions Inc. purchased a new stake in Ambev in the second quarter worth approximately $32,000. Finally, Equitable Trust Co. purchased a new stake in Ambev in the first quarter worth approximately $34,000. Hedge funds and other institutional investors own 8.13% of the company's stock.

About Ambev

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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