Fomento Economico Mexicano (NYSE:FMX) Rating Lowered to Hold at Zacks Research

Key Points

• Zacks Research downgraded FEMSA from “strong buy” to “hold,” bringing the analyst consensus to “hold” with a target price of $127.12.
• Analyst views remain mixed: Barclays and Wall Street Zen also rate the stock “hold,” while UBS, Bank of America and others maintain bullish ratings with targets as high as $150.
• FMX opened at $124.28, versus a 52-week range of $83.08 to $141.47. The company most recently reported quarterly earnings of $0.93 per share on $13.20 billion in revenue, while institutional investors own 61% of its shares.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

FMX has been the subject of a number of other reports. Barclays raised their price target on shares of Fomento Economico Mexicano from $125.00 to $130.00 and gave the company an "equal weight" rating in a report on Tuesday, July 14th. UBS Group boosted their price target on Fomento Economico Mexicano from $122.00 to $139.00 and gave the stock a "buy" rating in a research note on Thursday, May 28th. Wall Street Zen downgraded Fomento Economico Mexicano from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Bank of America upgraded Fomento Economico Mexicano from a "neutral" rating to a "buy" rating and raised their price objective for the company from $125.00 to $150.00 in a research note on Tuesday. Finally, Deutsche Bank Aktiengesellschaft set a $150.00 target price on Fomento Economico Mexicano in a research report on Tuesday. Four analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $127.12.

Fomento Economico Mexicano Stock Performance

Shares of NYSE:FMX opened at $124.28 on Tuesday. The company has a market cap of $42.95 billion, a P/E ratio of 24.86, a PEG ratio of 0.69 and a beta of 0.40. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.85 and a current ratio of 1.14. Fomento Economico Mexicano has a one year low of $83.08 and a one year high of $141.47. The business's 50-day simple moving average is $126.55 and its 200 day simple moving average is $117.56.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The company reported $0.93 earnings per share for the quarter. The firm had revenue of $13.20 billion during the quarter. Fomento Economico Mexicano had a return on equity of 8.38% and a net margin of 3.60%. On average, sell-side analysts forecast that Fomento Economico Mexicano will post 6.09 earnings per share for the current fiscal year.

Institutional Trading of Fomento Economico Mexicano

Hedge funds and other institutional investors have recently bought and sold shares of the company. Royal Bank of Canada lifted its holdings in Fomento Economico Mexicano by 3.2% during 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 last quarter. Nuveen LLC boosted its holdings in Fomento Economico Mexicano by 2.4% in the fourth 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 period. Invesco Ltd. boosted its holdings in Fomento Economico Mexicano by 18.9% in the fourth 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 period. Bank of America Corp DE raised its holdings in shares of Fomento Economico Mexicano by 21.2% during the third quarter. Bank of America Corp DE now owns 758,186 shares of the company's stock worth $74,780,000 after purchasing an additional 132,440 shares during the period. Finally, AQR Capital Management LLC raised its holdings in shares of Fomento Economico Mexicano by 11,692.3% during 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 period. 61.00% of the stock is owned by institutional investors.

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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