ABC Arbitrage SA Makes New Investment in Cemex S.A.B. de C.V. $CX

Key Points

• ABC Arbitrage SA opened a new position in Cemex during the first quarter, buying 1,173,473 shares worth about $13.4 million. The stake represents roughly 1.8% of ABC Arbitrage’s portfolio and about 0.08% of Cemex.
• Institutional interest in Cemex remains strong, with hedge funds and other investors owning 82.97% of the company. Several firms, including Schroder, Wellington, and Orbis Allan Gray, significantly increased their holdings.
• Analysts are generally positive on the stock: Cemex has a consensus rating of “Moderate Buy” and an average price target of $12.83. Recent moves included upgrades from Santander, Wall Street Zen, JPMorgan, and Morgan Stanley.

ABC Arbitrage SA bought a new stake in Cemex S.A.B. de C.V. (NYSE:CX - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 1,173,473 shares of the construction company's stock, valued at approximately $13,425,000. Cemex comprises approximately 1.8% of ABC Arbitrage SA's investment portfolio, making the stock its 14th largest holding. ABC Arbitrage SA owned about 0.08% of Cemex at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in the company. Schroder Investment Management Group lifted its holdings in shares of Cemex by 406.2% in the fourth quarter. Schroder Investment Management Group now owns 26,348,884 shares of the construction company's stock valued at $302,749,000 after purchasing an additional 21,143,554 shares in the last quarter. Wellington Management Group LLP increased its position in Cemex by 451.7% during the third quarter. Wellington Management Group LLP now owns 16,897,356 shares of the construction company's stock worth $151,907,000 after buying an additional 13,834,438 shares in the last quarter. Orbis Allan Gray Ltd increased its position in Cemex by 90.2% during the second quarter. Orbis Allan Gray Ltd now owns 26,300,519 shares of the construction company's stock worth $182,263,000 after buying an additional 12,469,417 shares in the last quarter. Itau Unibanco Holding S.A. raised its holdings in shares of Cemex by 53.1% in the fourth quarter. Itau Unibanco Holding S.A. now owns 10,857,832 shares of the construction company's stock worth $125,392,000 after acquiring an additional 3,766,639 shares during the last quarter. Finally, Millennium Management LLC raised its holdings in shares of Cemex by 129.2% in the fourth quarter. Millennium Management LLC now owns 5,758,476 shares of the construction company's stock worth $66,165,000 after acquiring an additional 3,246,064 shares during the last quarter. Hedge funds and other institutional investors own 82.97% of the company's stock.

Wall Street Analyst Weigh In

CX has been the topic of a number of analyst reports. Santander raised Cemex to an "outperform" rating in a research note on Thursday, June 11th. Wall Street Zen raised shares of Cemex from a "hold" rating to a "buy" rating in a research note on Saturday, May 23rd. JPMorgan Chase & Co. upped their price objective on shares of Cemex from $14.50 to $15.00 and gave the company an "overweight" rating in a research note on Wednesday, July 8th. Morgan Stanley upgraded Cemex from an "equal weight" rating to an "overweight" rating and set a $14.00 price target for the company in a report on Monday, March 23rd. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Cemex in a research note on Tuesday, May 26th. Seven research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, Cemex currently has an average rating of "Moderate Buy" and a consensus target price of $12.83.

Cemex Price Performance

CX stock opened at $12.46 on Tuesday. The stock has a 50-day moving average price of $12.65 and a two-hundred day moving average price of $12.17. The company has a market cap of $18.04 billion, a PE ratio of 38.92 and a beta of 1.52. Cemex S.A.B. de C.V. has a 12-month low of $7.24 and a 12-month high of $13.67. The company has a current ratio of 0.87, a quick ratio of 0.63 and a debt-to-equity ratio of 0.35.

Cemex (NYSE:CX - Get Free Report) last posted its quarterly earnings results on Tuesday, March 31st. The construction company reported $0.16 EPS for the quarter. Cemex had a net margin of 2.74% and a return on equity of 3.64%. As a group, research analysts predict that Cemex S.A.B. de C.V. will post 0.91 EPS for the current year.

Cemex Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 29th. Shareholders of record on Wednesday, June 17th were paid a dividend of $0.0312 per share. This is a boost from Cemex's previous quarterly dividend of $0.02. This represents a $0.12 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date was Wednesday, June 17th. Cemex's payout ratio is presently 37.50%.

Insider Activity

In related news, insider Herrera Jesus Vicente Gonzalez sold 35,000 shares of the firm's stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $12.16, for a total transaction of $425,600.00. Following the sale, the insider directly owned 846,010 shares in the company, valued at approximately $10,287,481.60. This trade represents a 3.97% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 1.00% of the company's stock.

About Cemex

Cemex NYSE: CX is a global building materials company headquartered in Monterrey, Mexico. The company produces, distributes and sells cement, ready-mix concrete and aggregates, as well as related building materials, to construction markets in more than 50 countries. Cemex's product portfolio also includes asphalt and mortar mixes, waste-derived fuels and other complementary construction solutions, supported by a network of production facilities, distribution centers and logistics operations.

Founded in 1906 as Cementos Hidalgo, the company adopted the Cemex name in 1976 following a series of domestic mergers and expansions.

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