Assenagon Asset Management S.A. Takes Position in Fomento Economico Mexicano S.A.B. de C.V. $FMX

Key Points

• Assenagon Asset Management acquired 18,852 shares of FEMSA in the second quarter, valued at approximately $2.4 million. Institutional investors and hedge funds collectively own 61% of the company.
• Analyst sentiment remains cautious: FEMSA has an average “Hold” rating and a consensus price target of $127.12, while several firms recently maintained or downgraded their ratings.
• FEMSA increased its quarterly dividend to $1.827 per share, implying an annualized dividend of $7.31 and a 6.3% yield. Shares opened at $116.43, down 0.9%, with quarterly EPS of $0.93 and revenue of $13.2 billion.

Assenagon Asset Management S.A. acquired a new stake in Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 18,852 shares of the company's stock, valued at approximately $2,411,000.

Several other large investors have also modified their holdings of FMX. Royal Bank of Canada increased its holdings in shares of Fomento Economico Mexicano by 3.2% in the 1st quarter. Royal Bank of Canada now owns 6,218,709 shares of the company's stock valued at $690,649,000 after acquiring an additional 193,432 shares during the period. Nuveen LLC grew its position in Fomento Economico Mexicano by 2.4% during the 4th quarter. Nuveen LLC now owns 3,850,882 shares of the company's stock worth $389,209,000 after purchasing an additional 88,721 shares during the last quarter. Invesco Ltd. grew its position in Fomento Economico Mexicano by 18.9% during the 4th quarter. Invesco Ltd. now owns 1,244,820 shares of the company's stock worth $125,814,000 after purchasing an additional 197,914 shares during the last quarter. Bank of America Corp DE increased its stake in Fomento Economico Mexicano by 21.2% in the third quarter. Bank of America Corp DE now owns 758,186 shares of the company's stock valued at $74,780,000 after purchasing an additional 132,440 shares during the period. Finally, AQR Capital Management LLC increased its stake in Fomento Economico Mexicano by 11,692.3% in the second quarter. AQR Capital Management LLC now owns 716,029 shares of the company's stock valued at $73,171,000 after purchasing an additional 709,957 shares during the period. 61.00% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, Director Michael David Kahn acquired 2,100 shares of Fomento Economico Mexicano stock in a transaction that occurred on Tuesday, August 11th. The stock was purchased at an average price of $118.13 per share, for a total transaction of $248,073.00. Following the completion of the purchase, 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 purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 5.68% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. UBS Group reiterated a "neutral" rating and set a $139.00 target price on shares of Fomento Economico Mexicano in a research note on Thursday, August 6th. Barclays boosted their price target on Fomento Economico Mexicano from $125.00 to $130.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 14th. Zacks Research downgraded Fomento Economico Mexicano from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 4th. Wall Street Zen cut Fomento Economico Mexicano from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Fomento Economico Mexicano in a research note on Friday, August 7th. Four analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, Fomento Economico Mexicano currently has an average rating of "Hold" and an average price target of $127.12.

Fomento Economico Mexicano Trading Down 0.9%

Shares of Fomento Economico Mexicano stock opened at $116.43 on Friday. The firm has a market cap of $40.23 billion, a price-to-earnings ratio of 23.29, a price-to-earnings-growth ratio of 0.65 and a beta of 0.40. Fomento Economico Mexicano S.A.B. de C.V. has a 52-week low of $83.08 and a 52-week high of $141.47. The company's 50-day simple moving average is $126.41 and its 200-day simple moving average is $118.22. 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 (NYSE:FMX - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The company reported $0.93 EPS for the quarter. The firm 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%. As a group, equities research analysts anticipate that Fomento Economico Mexicano S.A.B. de C.V. will post 6.09 earnings per share for the current year.

Fomento Economico Mexicano Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, July 27th. Stockholders 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 dividend on an annualized basis and a dividend yield of 6.3%. Fomento Economico Mexicano's dividend payout ratio is currently 48.60%.

Fomento Economico Mexicano Profile

Fomento Económico Mexicano, SAB. de C.V. (FEMSA) is a Mexican multinational company active primarily in the retail and beverage sectors. Headquartered in Monterrey, Mexico, FEMSA's operations span convenience store retailing, beverage bottling and distribution, and related logistics and consumer services. The company's business model combines high-frequency retail outlets with large-scale beverage production and a regional supply chain network.

FEMSA Comercio, the company's retail arm, operates a large chain of convenience stores under the OXXO brand and has expanded its retail footprint with complementary formats and services.

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