Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts rate FEMSA “Moderate Buy,” with four buy and four hold recommendations. The average 12-month price target is $131.43, with recent targets ranging from $130 to $150.
• FMX opened at $118.67, with a market capitalization of approximately $41 billion and a 52-week range of $83.08 to $141.47. Analysts expect full-year earnings of about $6.09 per share.
• FEMSA increased its quarterly dividend to $1.827, implying an annualized payout of $7.31 and a 6.2% yield; its payout ratio is 48.6%.

Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the eight research firms that are presently covering the company, Marketbeat reports. Four equities research analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $131.4286.

Several brokerages have recently issued reports on FMX. Barclays boosted 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. Bank of America upgraded Fomento Economico Mexicano from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $125.00 to $150.00 in a report on Tuesday, August 4th. Deutsche Bank Aktiengesellschaft set a $150.00 target price on Fomento Economico Mexicano in a report on Tuesday, August 4th. Wall Street Zen cut Fomento Economico Mexicano from a "buy" rating to a "hold" rating in a research note on Saturday, July 18th. Finally, UBS Group restated a "neutral" rating and issued a $139.00 price target on shares of Fomento Economico Mexicano in a report on Thursday, August 6th.

Fomento Economico Mexicano Stock Up 1.2%

Fomento Economico Mexicano stock opened at $118.67 on Thursday. The firm has a market capitalization of $41.00 billion, a price-to-earnings ratio of 23.73, a PEG ratio of 0.65 and a beta of 0.40. The company's 50 day simple moving average is $126.01 and its 200 day simple moving average is $118.51. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.14 and a quick ratio of 0.85. Fomento Economico Mexicano has a fifty-two week low of $83.08 and a fifty-two week high of $141.47.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) last issued its earnings results on Tuesday, June 30th. The company reported $0.93 EPS for the quarter. The firm had revenue of $13.20 billion during the quarter. Fomento Economico Mexicano had a net margin of 3.60% and a return on equity of 8.38%. As a group, sell-side analysts anticipate that Fomento Economico Mexicano will post 6.09 EPS for the current 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. The ex-dividend date was Wednesday, July 15th. This represents a $7.31 annualized dividend and a dividend yield of 6.2%. This is a boost from Fomento Economico Mexicano's previous quarterly dividend of $0.67. Fomento Economico Mexicano's payout ratio is presently 48.60%.

Insider Transactions at Fomento Economico Mexicano

In other Fomento Economico Mexicano news, Director Michael David Kahn bought 2,100 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was acquired at an average cost of $118.13 per share, with a total value of $248,073.00. Following the purchase, the director owned 2,100 shares in the company, valued at $248,073. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 5.68% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Wellington Management Group LLP bought a new stake in shares of Fomento Economico Mexicano during the second quarter worth $439,000. Pin Oak Investment Advisors Inc. bought a new stake in Fomento Economico Mexicano in the 2nd quarter valued at $33,000. Public Employees Retirement System of Ohio bought a new stake in Fomento Economico Mexicano in the 2nd quarter valued at $18,937,000. Councilmark Asset Management LLC acquired a new position in Fomento Economico Mexicano in the 2nd quarter worth $1,126,000. Finally, Cook & Bynum Capital Management LLC acquired a new position in Fomento Economico Mexicano in the 2nd quarter worth $29,857,616,000. Institutional investors and hedge funds own 61.00% of the company's stock.

About Fomento Economico Mexicano

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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