Fomento Economico Mexicano S.A.B. de C.V. (FMX) - What Are Analysts Thinking About This Stock?

Key Points

• Analysts are moderately bullish on FMX: Eight analysts evenly split between buy and hold ratings, producing a “Moderate Buy” consensus and an average 12-month price target of $140.50 versus the reported $127.41 share price.
• Recent financial results exceeded expectations: FEMSA reported quarterly EPS of $1.10, above the $1.04 consensus, while revenue reached $13.03 billion compared with expectations of $12.84 billion.
• The company reduced its dividend: The quarterly payout fell to $1.7804 from $1.8270, though the annualized dividend remains $7.12, representing a reported 5.6% yield and a 40.38% payout ratio.

Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX - Get Free Report) has received an average rating of "Moderate Buy" from the eight ratings firms that are currently covering the company, MarketBeat.com reports. Four research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $140.50.

FMX has been the topic of several recent research reports. JPMorgan Chase & Co. raised shares of Fomento Economico Mexicano from a "neutral" rating to an "overweight" rating and raised their target price for the company from $126.00 to $151.00 in a research note on Friday, October 16th. Zacks Research downgraded shares of Fomento Economico Mexicano from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 4th. Weiss Ratings upgraded shares of Fomento Economico Mexicano from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, September 4th. Wall Street Zen cut shares of Fomento Economico Mexicano from a "buy" rating to a "hold" rating in a research note on Saturday, July 18th. Finally, Benchmark raised shares of Fomento Economico Mexicano to an "overweight" rating in a research note on Friday, October 16th.

Insider Buying and Selling at Fomento Economico Mexicano

In related news, Director Michael David Kahn purchased 2,100 shares of Fomento Economico Mexicano stock in a transaction dated Tuesday, August 11th. The shares were acquired at an average cost of $118.13 per share, for a total transaction of $248,073.00. Following the transaction, the director directly owned 2,100 shares of the company's stock, valued at approximately $248,073. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 5.68% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Fomento Economico Mexicano

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. V Square Quantitative Management LLC bought a new position in Fomento Economico Mexicano during the first quarter worth about $28,000. Pin Oak Investment Advisors Inc. bought a new stake in shares of Fomento Economico Mexicano in the 2nd quarter valued at about $33,000. GAMMA Investing LLC increased its stake in shares of Fomento Economico Mexicano by 79.2% in the 3rd quarter. GAMMA Investing LLC now owns 396 shares of the company's stock valued at $47,000 after acquiring an additional 175 shares during the last quarter. Trust Co. of Vermont bought a new stake in shares of Fomento Economico Mexicano in the 2nd quarter valued at about $102,000. Finally, IFP Advisors Inc acquired a new stake in shares of Fomento Economico Mexicano in the 2nd quarter valued at approximately $118,000. Institutional investors own 61.00% of the company's stock.

Fomento Economico Mexicano Trading Up 1.0%

FMX stock opened at $127.41 on Tuesday. The company has a quick ratio of 0.85, a current ratio of 1.14 and a debt-to-equity ratio of 0.41. Fomento Economico Mexicano has a twelve month low of $90.87 and a twelve month high of $141.47. The company has a market cap of $44.02 billion, a P/E ratio of 22.27, a PEG ratio of 0.66 and a beta of 0.41. The business has a fifty day moving average of $121.31 and a 200-day moving average of $118.42.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The company reported $1.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.04 by $0.06. The business had revenue of $13.03 billion for the quarter, compared to analysts' expectations of $12.84 billion. Fomento Economico Mexicano had a return on equity of 7.78% and a net margin of 3.98%. As a group, equities research analysts expect that Fomento Economico Mexicano will post 6.32 EPS for the current year.

Fomento Economico Mexicano Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, October 26th. Stockholders of record on Wednesday, October 14th were paid a $1.7804 dividend. This is a decrease from Fomento Economico Mexicano's previous quarterly dividend of $1.8270. The ex-dividend date of this dividend was Wednesday, October 14th. This represents a $7.12 dividend on an annualized basis and a dividend yield of 5.6%. Fomento Economico Mexicano's dividend payout ratio (DPR) is currently 40.38%.

Fomento Economico Mexicano Company Profile

Fomento Económico Mexicano, SAB. de C.V. (FEMSA) is a Monterrey, Mexico-based multinational company with operations focused on beverage bottling, retail and related consumer services. The company traces its origins to 1890, when it was established as a brewery in Monterrey, and has since developed into one of Latin America's largest consumer-facing businesses.

FEMSA's principal beverage business is Coca-Cola FEMSA, which produces, markets, sells and distributes Coca-Cola trademark beverages and other nonalcoholic drinks.

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