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

Key Points

• Fomento Economico Mexicano (NYSE:FMX) has an average analyst rating of “Moderate Buy” from eight brokerages, with a consensus 12-month price target of $119.50.
• The company recently announced a much higher quarterly dividend of $1.827 per share, up from $0.67 previously, implying an annualized yield of 5.8%.
• FMX reported $2.43 EPS and $11.61 billion in revenue in its latest quarter, while institutional ownership remains significant at 61% of shares outstanding.

Shares of Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX - Get Free Report) have been given an average recommendation of "Moderate Buy" by the eight ratings firms that are presently covering the company, Marketbeat reports. Three analysts have rated the stock with a hold recommendation, four have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $119.50.

Several analysts recently issued reports on the company. Zacks Research raised Fomento Economico Mexicano from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 30th. Barclays boosted their price objective on shares of Fomento Economico Mexicano from $125.00 to $130.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 14th. UBS Group raised their target price on shares of Fomento Economico Mexicano from $122.00 to $139.00 and gave the stock a "buy" rating in a research report on Thursday, May 28th. Wall Street Zen lowered shares of Fomento Economico Mexicano from a "buy" rating to a "hold" rating in a research note on Saturday, July 18th. Finally, JPMorgan Chase & Co. upped their target price on Fomento Economico Mexicano from $117.00 to $126.00 and gave the stock an "overweight" rating in a report on Friday, June 26th.

Hedge Funds Weigh In On Fomento Economico Mexicano

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC increased its stake in shares of Fomento Economico Mexicano by 19.0% in the 1st quarter. AQR Capital Management LLC now owns 6,072 shares of the company's stock worth $593,000 after acquiring an additional 969 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in shares of Fomento Economico Mexicano by 2,006.2% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 337 shares of the company's stock valued at $35,000 after purchasing an additional 321 shares in the last quarter. New York State Common Retirement Fund purchased a new position in shares of Fomento Economico Mexicano during the second quarter valued at approximately $429,000. EverSource Wealth Advisors LLC boosted its position in shares of Fomento Economico Mexicano by 61.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,156 shares of the company's stock worth $119,000 after purchasing an additional 438 shares in the last quarter. Finally, Jump Financial LLC purchased a new stake in shares of Fomento Economico Mexicano in the 2nd quarter worth approximately $504,000. Hedge funds and other institutional investors own 61.00% of the company's stock.

Fomento Economico Mexicano Stock Down 0.1%

Shares of NYSE FMX opened at $126.97 on Friday. The company has a quick ratio of 0.87, a current ratio of 1.16 and a debt-to-equity ratio of 0.47. Fomento Economico Mexicano has a 52 week low of $83.08 and a 52 week high of $134.52. The firm's fifty day moving average is $125.81 and its 200 day moving average is $116.11. The company has a market cap of $43.87 billion, a price-to-earnings ratio of 28.40, a PEG ratio of 0.69 and a beta of 0.41.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) last posted its quarterly earnings results on Tuesday, March 31st. The company reported $2.43 EPS for the quarter. The company had revenue of $11.61 billion during the quarter. Fomento Economico Mexicano had a net margin of 3.40% and a return on equity of 7.33%. On average, equities research analysts expect that Fomento Economico Mexicano will post 6.19 earnings per share for the current year.

Fomento Economico Mexicano Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, July 27th. Investors of record on Wednesday, July 15th will be given a dividend of $1.827 per share. This is a boost from Fomento Economico Mexicano's previous quarterly dividend of $0.67. This represents a $7.31 annualized dividend and a dividend yield of 5.8%. The ex-dividend date is Wednesday, July 15th. Fomento Economico Mexicano's dividend payout ratio is presently 54.36%.

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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