RWC Asset Management LLP Lowers Stock Position in Ambev S.A. (NYSE:ABEV)

Key Points

• RWC Asset Management LLP has reduced its stake in Ambev S.A. by 4.3%, now holding approximately $29.12 million worth, which constitutes about 1.5% of its investment portfolio.
• Analysts have mixed views on Ambev, with Barclays raising its target price to $2.50 while Morgan Stanley downgraded the stock to an "underweight" rating; the consensus rating remains a "Hold."
• Ambev recently cut its dividend payout, announcing a yield of 5% on a dividend of $0.0219 per share, with a payout ratio of 68.75%.

RWC Asset Management LLP lowered its stake in Ambev S.A. (NYSE:ABEV - Free Report) by 4.3% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 12,497,391 shares of the company's stock after selling 566,165 shares during the quarter. Ambev accounts for 1.5% of RWC Asset Management LLP's portfolio, making the stock its 18th biggest position. RWC Asset Management LLP owned 0.08% of Ambev worth $29,119,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently made changes to their positions in ABEV. GAMMA Investing LLC grew its stake in shares of Ambev by 468.4% in the first quarter. GAMMA Investing LLC now owns 10,998 shares of the company's stock worth $26,000 after acquiring an additional 9,063 shares during the last quarter. Perigon Wealth Management LLC purchased a new position in shares of Ambev in the first quarter worth $27,000. Generation Capital Management LLC purchased a new stake in shares of Ambev during the fourth quarter valued at $28,000. U.S. Capital Wealth Advisors LLC bought a new stake in Ambev in the 1st quarter worth about $28,000. Finally, M&T Bank Corp bought a new position in Ambev during the 1st quarter valued at about $30,000. Hedge funds and other institutional investors own 8.13% of the company's stock.

Analysts Set New Price Targets

A number of research analysts recently weighed in on ABEV shares. Barclays increased their price objective on shares of Ambev from $2.00 to $2.50 and gave the company an "equal weight" rating in a research report on Monday, May 12th. UBS Group raised their price objective on shares of Ambev from $2.60 to $2.70 and gave the stock a "neutral" rating in a report on Wednesday, June 4th. Wall Street Zen initiated coverage on Ambev in a research report on Wednesday, April 23rd. They set a "buy" rating on the stock. Finally, Morgan Stanley downgraded Ambev from an "equal weight" rating to an "underweight" rating in a research note on Monday, April 7th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $2.60.

Ambev Price Performance

Shares of Ambev stock traded up $0.04 during trading on Tuesday, reaching $2.34. 19,367,046 shares of the stock traded hands, compared to its average volume of 28,005,690. Ambev S.A. has a 52-week low of $1.76 and a 52-week high of $2.63. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.11 and a quick ratio of 0.80. The business has a fifty day simple moving average of $2.43 and a two-hundred day simple moving average of $2.26. The company has a market capitalization of $36.79 billion, a price-to-earnings ratio of 14.38, a P/E/G ratio of 2.44 and a beta of 0.74.

Ambev (NYSE:ABEV - Get Free Report) last posted its earnings results on Thursday, May 8th. The company reported $0.04 EPS for the quarter, meeting analysts' consensus estimates of $0.04. Ambev had a return on equity of 14.74% and a net margin of 15.76%. The firm had revenue of $3.92 billion during the quarter, compared to the consensus estimate of $22.40 billion. Sell-side analysts expect that Ambev S.A. will post 0.18 EPS for the current year.

Ambev Cuts Dividend

The business also recently disclosed a -- dividend, which was paid on Thursday, July 17th. Investors of record on Monday, May 19th were issued a dividend of $0.0219 per share. The ex-dividend date was Monday, May 19th. This represents a yield of 5%. Ambev's payout ratio is 68.75%.

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.