Fomento Economico Mexicano (NYSE:FMX) Sees Strong Trading Volume - Should You Buy?

Key Points

• Fomento Economico Mexicano experienced a significant decline in trading volume, with about 476,467 shares traded, down 24% from the previous session.
• The company reported $0.42 EPS for the last quarter, missing the consensus estimate of $0.91, and its revenue stood at $11.27 billion, significantly below analysts' expectations.
• Fomento Economico Mexicano recently increased its dividend to $1.3625 per share, representing a substantial yield of 200.0% and raising its payout ratio to 74.83%.

Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX - Get Free Report) shares saw unusually-strong trading volume on Friday . Approximately 476,467 shares traded hands during trading, a decline of 24% from the previous session's volume of 624,449 shares.The stock last traded at $85.37 and had previously closed at $84.55.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on FMX shares. Wall Street Zen cut shares of Fomento Economico Mexicano from a "buy" rating to a "hold" rating in a research report on Wednesday, April 30th. Morgan Stanley reissued an "equal weight" rating and set a $97.00 price target (down previously from $132.00) on shares of Fomento Economico Mexicano in a research report on Tuesday. UBS Group increased their price target on shares of Fomento Economico Mexicano from $112.00 to $115.00 and gave the stock a "neutral" rating in a research report on Thursday, July 10th. Finally, Barclays reduced their price target on shares of Fomento Economico Mexicano from $110.00 to $107.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 31st. Two equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Fomento Economico Mexicano presently has a consensus rating of "Hold" and an average target price of $105.16.

Fomento Economico Mexicano Price Performance

The stock's 50 day moving average is $97.09 and its two-hundred day moving average is $98.30. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.34 and a quick ratio of 1.06. The stock has a market capitalization of $30.88 billion, a PE ratio of 29.36, a price-to-earnings-growth ratio of 4.02 and a beta of 0.66.

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

Fomento Economico Mexicano Increases Dividend

The business also recently declared a -- dividend, which was paid on Monday, July 28th. Shareholders of record on Thursday, July 17th were paid a $1.3625 dividend. This is an increase from Fomento Economico Mexicano's previous -- dividend of $0.73. This represents a yield of 200.0%. The ex-dividend date was Thursday, July 17th. Fomento Economico Mexicano's payout ratio is currently 74.83%.

Hedge Funds Weigh In On Fomento Economico Mexicano

Several hedge funds have recently added to or reduced their stakes in FMX. Wells Fargo & Company MN increased its stake in Fomento Economico Mexicano by 17.0% in the fourth quarter. Wells Fargo & Company MN now owns 28,135 shares of the company's stock valued at $2,405,000 after purchasing an additional 4,096 shares during the last quarter. Raymond James Financial Inc. purchased a new position in Fomento Economico Mexicano in the fourth quarter valued at approximately $813,000. Barclays PLC increased its stake in Fomento Economico Mexicano by 28.2% in the fourth quarter. Barclays PLC now owns 92,483 shares of the company's stock valued at $7,907,000 after purchasing an additional 20,324 shares during the last quarter. Mariner LLC increased its stake in Fomento Economico Mexicano by 3.1% in the fourth quarter. Mariner LLC now owns 22,335 shares of the company's stock valued at $1,909,000 after purchasing an additional 674 shares during the last quarter. Finally, NewEdge Advisors LLC increased its stake in Fomento Economico Mexicano by 9.7% in the fourth quarter. NewEdge Advisors LLC now owns 4,328 shares of the company's stock valued at $370,000 after purchasing an additional 382 shares during the last quarter. 61.00% of the stock is currently owned by hedge funds and other institutional investors.

About Fomento Economico Mexicano

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.