Fomento Economico Mexicano S.A.B. de C.V. $FMX Shares Acquired by Itau Unibanco Holding S.A.

Key Points

• Itau Unibanco Holding S.A. has increased its stake in Fomento Economico Mexicano by 105.4% to become its 8th largest holding, now owning approximately 1.1 million shares valued at over $106 million.
• A recent earnings report revealed that Fomento Economico Mexicano missed analysts' expectations, reporting earnings per share of $0.42 compared to the consensus estimate of $0.91.
• The company announced a quarterly dividend hike to $1.3625 per share, up significantly from its previous dividend of $0.73, resulting in an annualized payout of $5.45 and a dividend yield of 6.3%.

Itau Unibanco Holding S.A. increased its stake in shares of Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX - Free Report) by 105.4% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,112,036 shares of the company's stock after buying an additional 570,640 shares during the quarter. Fomento Economico Mexicano comprises approximately 4.0% of Itau Unibanco Holding S.A.'s investment portfolio, making the stock its 8th biggest position. Itau Unibanco Holding S.A. owned about 0.31% of Fomento Economico Mexicano worth $106,139,000 as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in the stock. Stephens Inc. AR boosted its holdings in shares of Fomento Economico Mexicano by 2.1% in the 1st quarter. Stephens Inc. AR now owns 5,937 shares of the company's stock valued at $579,000 after purchasing an additional 121 shares in the last quarter. Caitong International Asset Management Co. Ltd bought a new position in shares of Fomento Economico Mexicano in the 1st quarter valued at $29,000. Parallel Advisors LLC raised its position in Fomento Economico Mexicano by 56.2% during the 1st quarter. Parallel Advisors LLC now owns 831 shares of the company's stock worth $81,000 after purchasing an additional 299 shares during the last quarter. Smartleaf Asset Management LLC raised its position in Fomento Economico Mexicano by 69.2% during the 1st quarter. Smartleaf Asset Management LLC now owns 785 shares of the company's stock worth $79,000 after purchasing an additional 321 shares during the last quarter. Finally, Fifth Third Bancorp raised its position in Fomento Economico Mexicano by 1.3% during the 1st quarter. Fifth Third Bancorp now owns 26,474 shares of the company's stock worth $2,583,000 after purchasing an additional 340 shares during the last quarter. Institutional investors and hedge funds own 61.00% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. UBS Group raised their target price on Fomento Economico Mexicano from $112.00 to $115.00 and gave the stock a "neutral" rating in a research report on Thursday, July 10th. Barclays lowered their target price on Fomento Economico Mexicano from $110.00 to $107.00 and set an "equal weight" rating for the company in a research report on Thursday, July 31st. Finally, Morgan Stanley reaffirmed an "equal weight" rating and set a $97.00 target price (down from $132.00) on shares of Fomento Economico Mexicano in a research report on Tuesday, August 19th. Two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $105.16.

Fomento Economico Mexicano Stock Up 0.8%

Fomento Economico Mexicano stock traded up $0.72 during midday trading on Tuesday, reaching $87.36. The stock had a trading volume of 141,060 shares, compared to its average volume of 664,355. Fomento Economico Mexicano S.A.B. de C.V. has a 12 month low of $81.07 and a 12 month high of $108.74. The company has a market capitalization of $31.26 billion, a P/E ratio of 29.72, a PEG ratio of 5.07 and a beta of 0.70. The company has a fifty day moving average price of $94.18 and a two-hundred day moving average price of $98.34. The company has a current ratio of 1.34, a quick ratio of 1.06 and a debt-to-equity ratio of 0.42.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) last issued its earnings results on Monday, July 28th. The company reported $0.42 EPS for the quarter, missing analysts' consensus estimates of $0.91 by ($0.49). The firm had revenue of $11.27 billion during the quarter, compared to the consensus estimate of $216.71 billion. Fomento Economico Mexicano had a net margin of 2.60% and a return on equity of 5.32%. As a group, equities analysts expect that Fomento Economico Mexicano S.A.B. de C.V. will post 5.32 EPS for the current fiscal year.

Fomento Economico Mexicano Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, July 28th. Shareholders of record on Thursday, July 17th were paid a dividend of $1.3625 per share. This is an increase from Fomento Economico Mexicano's previous quarterly dividend of $0.73. The ex-dividend date was Thursday, July 17th. This represents a $5.45 dividend on an annualized basis and a yield of 6.2%. Fomento Economico Mexicano's dividend payout ratio (DPR) is presently 74.83%.

Fomento Economico Mexicano Profile

Fomento Económico Mexicano, SAB. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages. The company produces, markets, and distributes Coca-Cola trademark beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina, and Uruguay.