HSBC Reiterates Hold Rating for Ambev (NYSE:ABEV)

Key Points

• HSBC has maintained a "hold" rating for Ambev (NYSE:ABEV), while the consensus rating among analysts remains "hold" with a target price of $2.60.
• Ambev's stock has experienced a 4.6% decline, and its recent financial reports indicate a net margin of 15.76% and an earnings per share of $0.04.
• Institutional investors have increased their stakes in Ambev significantly, with notable increases by Bank of America and Two Sigma Advisers, highlighting growing interest in the company.

Ambev (NYSE:ABEV - Get Free Report)'s stock had its "hold" rating reaffirmed by equities researchers at HSBC in a research note issued on Friday, Marketbeat reports.

Several other research firms have also recently commented on ABEV. Barclays increased their price objective on Ambev from $2.00 to $2.50 and gave the company an "equal weight" rating in a research report on Monday, May 12th. Morgan Stanley cut Ambev from an "equal weight" rating to an "underweight" rating in a research report on Monday, April 7th. Wall Street Zen assumed coverage on Ambev in a research report on Wednesday, April 23rd. They issued a "buy" rating on the stock. Finally, UBS Group raised their target price on Ambev from $2.60 to $2.70 and gave the stock a "neutral" rating in a research report on Wednesday, June 4th. One research analyst has rated the stock with a sell rating, six have issued a hold rating and one has assigned a buy rating to the stock. According to MarketBeat.com, Ambev has a consensus rating of "Hold" and a consensus target price of $2.60.

Ambev Stock Down 0.2%

Shares of NYSE ABEV traded down $0.01 during trading on Friday, reaching $2.21. The company had a trading volume of 29,982,384 shares, compared to its average volume of 33,728,125. The company has a quick ratio of 0.80, a current ratio of 1.11 and a debt-to-equity ratio of 0.02. Ambev has a 12-month low of $1.76 and a 12-month high of $2.63. The stock has a market cap of $34.75 billion, a PE ratio of 13.78, a P/E/G ratio of 2.31 and a beta of 0.74. The business's 50-day moving average is $2.40 and its 200 day moving average is $2.28.

Ambev (NYSE:ABEV - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.03 EPS for the quarter, meeting the consensus estimate of $0.03. Ambev had a return on equity of 15.39% and a net margin of 16.18%. The company had revenue of $3.59 billion for the quarter, compared to analysts' expectations of $21.84 billion. As a group, equities analysts forecast that Ambev will post 0.18 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Abacus Wealth Partners LLC purchased a new position in shares of Ambev during the 2nd quarter valued at about $25,000. GAMMA Investing LLC lifted its position in shares of Ambev by 468.4% during the 1st quarter. GAMMA Investing LLC now owns 10,998 shares of the company's stock valued at $26,000 after buying an additional 9,063 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new position in shares of Ambev during the 1st quarter valued at about $26,000. Perigon Wealth Management LLC purchased a new position in shares of Ambev during the 1st quarter valued at about $27,000. Finally, Generation Capital Management LLC purchased a new position in shares of Ambev during the 4th quarter valued at about $28,000. 8.13% of the stock is owned by hedge funds and other institutional investors.

Ambev Company 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.