Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Analyst sentiment is mixed: Four of seven analysts rate FMX a “hold” and three recommend buying, with an average 12-month price target of $137.17 versus a share price of $116.86.
• FEMSA reported quarterly EPS of $0.93 on revenue of $13.20 billion, while analysts expect full-year EPS of approximately $6.09.
• The company increased its quarterly dividend to $1.827 per share, representing an annualized payout of $7.31 and a 6.3% yield; institutional investors and hedge funds own 61% of the stock.

Shares of Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX - Get Free Report) have been given a consensus recommendation of "Hold" by the seven analysts that are presently covering the stock, MarketBeat reports. Four equities research analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $137.1667.

FMX has been the subject of a number of research reports. 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. JPMorgan Chase & Co. lifted their price objective on Fomento Economico Mexicano from $117.00 to $126.00 and gave the stock an "overweight" rating in a report on Friday, June 26th. Deutsche Bank Aktiengesellschaft set a $150.00 price objective on Fomento Economico Mexicano in a research note on Tuesday, August 4th. UBS Group restated a "neutral" rating and issued a $139.00 target price on shares of Fomento Economico Mexicano in a research report on Thursday, August 6th. Finally, Barclays lifted their price target on Fomento Economico Mexicano from $125.00 to $130.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 14th.

Insider Transactions at Fomento Economico Mexicano

In other Fomento Economico Mexicano news, Director Michael David Kahn bought 2,100 shares of the company's stock in a transaction dated Tuesday, August 11th. The stock was acquired at an average price of $118.13 per share, with a total value of $248,073.00. Following the completion of the acquisition, the director directly owned 2,100 shares of the company's stock, valued at $248,073. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 5.68% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Fomento Economico Mexicano

Institutional investors and hedge funds have recently bought and sold shares of the business. Tidal Investments LLC grew its stake in Fomento Economico Mexicano by 11.4% during the 2nd quarter. Tidal Investments LLC now owns 8,778 shares of the company's stock valued at $1,123,000 after acquiring an additional 896 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new position in Fomento Economico Mexicano in the 2nd quarter worth approximately $217,000. NewEdge Advisors LLC boosted its holdings in shares of Fomento Economico Mexicano by 30.9% during the 2nd quarter. NewEdge Advisors LLC now owns 7,872 shares of the company's stock worth $1,007,000 after purchasing an additional 1,856 shares during the last quarter. IFP Advisors Inc acquired a new position in shares of Fomento Economico Mexicano during the 2nd quarter worth approximately $118,000. Finally, Squarepoint Ops LLC purchased a new stake in shares of Fomento Economico Mexicano in the second quarter valued at approximately $705,000. 61.00% of the stock is currently owned by institutional investors and hedge funds.

Fomento Economico Mexicano Trading Down 0.1%

Shares of NYSE:FMX opened at $116.86 on Monday. The business's 50 day moving average price is $123.59 and its 200-day moving average price is $119.62. Fomento Economico Mexicano has a 1 year low of $89.54 and a 1 year high of $141.47. The firm has a market capitalization of $40.38 billion, a price-to-earnings ratio of 23.37, a price-to-earnings-growth ratio of 0.65 and a beta of 0.40. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.14 and a quick ratio of 0.85.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) last issued its quarterly earnings results on Tuesday, June 30th. The company reported $0.93 EPS for the quarter. The company had revenue of $13.20 billion during the quarter. Fomento Economico Mexicano had a net margin of 3.60% and a return on equity of 8.38%. On average, equities research analysts forecast that Fomento Economico Mexicano will post 6.09 earnings per share for the current fiscal year.

Fomento Economico Mexicano Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, July 27th. Shareholders of record on Wednesday, July 15th were paid a dividend of $1.827 per share. This is a boost from Fomento Economico Mexicano's previous quarterly dividend of $0.67. The ex-dividend date of this dividend was Wednesday, July 15th. This represents a $7.31 annualized dividend and a yield of 6.3%. Fomento Economico Mexicano's dividend payout ratio is presently 48.60%.

About Fomento Economico Mexicano

Fomento Económico Mexicano, SAB. de C.V. (FEMSA) is a Mexico-based company with operations spanning beverage production and distribution, retail, and digital services. Through Coca-Cola FEMSA, the company produces, markets, sells and distributes products under The Coca-Cola Company portfolio, including sparkling beverages, water, sports drinks and other nonalcoholic beverages.

FEMSA also operates a broad network of convenience stores under the OXXO brand. Its retail activities include the sale of packaged food, beverages, tobacco products, personal-care items and other everyday goods, as well as services such as bill payment and financial transactions.

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