Cook & Bynum Capital Management LLC Acquires Shares of 1,078,495 Ambev S.A. $ABEV

Key Points

• Cook & Bynum Capital Management LLC acquired 1,078,495 shares of Ambev S.A. valued at approximately $2.5 million, making it the fund's 5th largest position.
• Ambev recently increased its dividend to $0.023 per share, up from $0.02, representing a substantial dividend yield of 660.0%.
• Analysts have set a consensus price target for Ambev at $2.35, with a mix of ratings, including six "Hold" ratings and one "Sell" rating.

Cook & Bynum Capital Management LLC acquired a new position in shares of Ambev S.A. (NYSE:ABEV - Free Report) during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 1,078,495 shares of the company's stock, valued at approximately $2,513,000. Ambev makes up about 2.0% of Cook & Bynum Capital Management LLC's portfolio, making the stock its 5th largest position.

Several other hedge funds have also modified their holdings of ABEV. Talaria Asset Management Pty Ltd purchased a new stake in shares of Ambev during the 4th quarter worth approximately $38,602,000. Bank of America Corp DE grew its position in Ambev by 201.7% in the 4th quarter. Bank of America Corp DE now owns 26,087,675 shares of the company's stock valued at $48,262,000 after acquiring an additional 17,440,564 shares during the last quarter. Two Sigma Advisers LP grew its position in Ambev by 329.6% in the 4th quarter. Two Sigma Advisers LP now owns 16,354,000 shares of the company's stock valued at $30,255,000 after acquiring an additional 12,546,800 shares during the last quarter. Two Sigma Investments LP grew its position in Ambev by 202.5% in the 4th quarter. Two Sigma Investments LP now owns 13,181,359 shares of the company's stock valued at $24,386,000 after acquiring an additional 8,823,911 shares during the last quarter. Finally, Russell Investments Group Ltd. grew its position in shares of Ambev by 105.8% during the 1st quarter. Russell Investments Group Ltd. now owns 16,170,388 shares of the company's stock worth $37,677,000 after buying an additional 8,312,561 shares in the last quarter. 8.13% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on ABEV. HSBC reissued a "hold" rating on shares of Ambev in a research report on Friday, August 1st. Hsbc Global Res upgraded Ambev to a "hold" rating in a research note on Friday, August 1st. Barclays upped their price objective on Ambev from $2.00 to $2.50 and gave the stock an "equal weight" rating in a research note on Monday, May 12th. Finally, UBS Group decreased their price target on Ambev from $2.50 to $2.20 and set a "neutral" rating for the company in a research note on Wednesday, August 20th. Six investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Ambev currently has a consensus rating of "Reduce" and a consensus target price of $2.35.

Ambev Stock Performance

Shares of NYSE:ABEV traded up $0.03 during trading on Tuesday, hitting $2.23. The stock had a trading volume of 40,014,182 shares, compared to its average volume of 32,985,070. Ambev S.A. has a 12-month low of $1.76 and a 12-month high of $2.63. The stock has a market capitalization of $35.06 billion, a price-to-earnings ratio of 13.91, a price-to-earnings-growth ratio of 2.43 and a beta of 0.84. The company has a quick ratio of 0.80, a current ratio of 1.11 and a debt-to-equity ratio of 0.02. The stock has a 50-day simple moving average of $2.29 and a two-hundred day simple moving average of $2.34.

Ambev (NYSE:ABEV - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The company reported $0.03 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.03. Ambev had a return on equity of 15.39% and a net margin of 16.18%.The firm had revenue of $3.59 billion during the quarter, compared to analysts' expectations of $21.84 billion. On average, equities research analysts expect that Ambev S.A. will post 0.18 earnings per share for the current fiscal year.

Ambev Increases Dividend

The company also recently disclosed a -- dividend, which will be paid on Tuesday, October 14th. Stockholders of record on Monday, August 11th will be paid a $0.023 dividend. The ex-dividend date is Monday, August 11th. This is a positive change from Ambev's previous -- dividend of $0.02. This represents a dividend yield of 660.0%. Ambev's dividend payout ratio (DPR) is 31.25%.

Ambev Profile

Ambev SA, through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products in Brazil, Central America and Caribbean, Latin America South, and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Budweiser, Bud Light, Beck, Leffe, Hoegaarden, Balboa ICE, Balboa, Atlas Golden Light, Atlas, Bucanero, Cristal, Mayabe, Presidente, Presidente Light, Brahma Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Bud 66, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith's, and Kokanee brands.