Bank of America Corp DE Reduces Stock Position in Fomento Economico Mexicano S.A.B. de C.V. $FMX

Key Points

• Bank of America reduced its FEMSA position by 2.6% in the first quarter, selling 10,908 shares and retaining 404,135 shares valued at approximately $44.9 million. Institutional investors collectively own 61% of the company.
• FEMSA reported quarterly revenue of $13.2 billion and earnings of $0.93 per share, while analysts expect $6.09 in full-year EPS. The company increased its quarterly dividend to $1.827, implying a 6.2% annualized yield.
• Analyst sentiment is mixed: Bank of America upgraded the stock to “buy” with a $150 target, while several firms maintained “hold” ratings. The consensus rating remains “Hold,” with an average price target of $127.12.

Bank of America Corp DE lessened its position in Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX - Free Report) by 2.6% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 404,135 shares of the company's stock after selling 10,908 shares during the period. Bank of America Corp DE owned 0.12% of Fomento Economico Mexicano worth $44,883,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently modified their holdings of the company. AQR Capital Management LLC grew its stake in shares of 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 worth $73,171,000 after purchasing an additional 709,957 shares during the last quarter. Invesco Ltd. increased its holdings in Fomento Economico Mexicano by 67.8% during the 3rd quarter. Invesco Ltd. now owns 1,046,906 shares of the company's stock valued at $103,256,000 after purchasing an additional 423,073 shares during the period. Itau Unibanco Holding S.A. bought a new position in Fomento Economico Mexicano during the 4th quarter valued at approximately $41,408,000. Goldman Sachs Group Inc. raised its position in Fomento Economico Mexicano by 253.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 567,718 shares of the company's stock valued at $57,379,000 after purchasing an additional 407,140 shares during the last quarter. Finally, Royal Bank of Canada lifted its holdings in 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 worth $690,649,000 after buying an additional 193,432 shares during the period. Hedge funds and other institutional investors own 61.00% of the company's stock.

Fomento Economico Mexicano Stock Down 0.6%

NYSE:FMX opened at $117.48 on Thursday. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.85 and a current ratio of 1.14. The firm has a market cap of $40.59 billion, a P/E ratio of 23.50, a P/E/G ratio of 0.66 and a beta of 0.40. Fomento Economico Mexicano S.A.B. de C.V. has a fifty-two week low of $83.08 and a fifty-two week high of $141.47. The firm has a 50-day simple moving average of $126.54 and a two-hundred day simple moving average of $118.15.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) last issued its earnings results on Tuesday, June 30th. The company reported $0.93 earnings per share (EPS) for the quarter. Fomento Economico Mexicano had a net margin of 3.60% and a return on equity of 8.38%. The firm had revenue of $13.20 billion for the quarter. Analysts predict that Fomento Economico Mexicano S.A.B. de C.V. will post 6.09 earnings per share for the current fiscal year.

Fomento Economico Mexicano Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, July 27th. Investors of record on Wednesday, July 15th were given a $1.827 dividend. 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 6.2%. Fomento Economico Mexicano's payout ratio is currently 48.60%.

Insider Buying and Selling

In other Fomento Economico Mexicano news, Director Michael David Kahn bought 2,100 shares of the business's stock in a transaction on 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 purchase, the director owned 2,100 shares in the company, valued at approximately $248,073. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 5.68% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently weighed in on FMX. Bank of America upgraded Fomento Economico Mexicano from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $125.00 to $150.00 in a research report on Tuesday, August 4th. Wall Street Zen cut shares of Fomento Economico Mexicano from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Zacks Research lowered shares of Fomento Economico Mexicano from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. JPMorgan Chase & Co. raised their target price on shares of Fomento Economico Mexicano from $117.00 to $126.00 and gave the stock an "overweight" rating in a research report on Friday, June 26th. Finally, Deutsche Bank Aktiengesellschaft set a $150.00 target price on Fomento Economico Mexicano in a research note on Tuesday, August 4th. Four equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $127.12.

Fomento Economico Mexicano Company 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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