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 restated by equities researchers at HSBC in a research report issued on Friday.

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

Ambev Stock Down 4.6%

ABEV stock opened at $2.20 on Friday. Ambev has a twelve month low of $1.76 and a twelve month high of $2.63. The company has a market cap of $34.59 billion, a PE ratio of 13.72, a price-to-earnings-growth ratio of 2.44 and a beta of 0.74. The business's 50-day simple moving average is $2.41 and its 200 day simple moving average is $2.27. 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 (NYSE:ABEV - Get Free Report) last posted its earnings results on Thursday, May 8th. The company reported $0.04 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.04. Ambev had a net margin of 15.76% and a return on equity of 14.74%. The company had revenue of $3.92 billion during the quarter, compared to analysts' expectations of $22.40 billion. On average, research analysts anticipate that Ambev will post 0.18 earnings per share for the current year.

Institutional Trading of Ambev

A number of institutional investors have recently bought and sold shares of the company. Bank of America Corp DE boosted its position in Ambev by 201.7% during the fourth quarter. Bank of America Corp DE now owns 26,087,675 shares of the company's stock valued at $48,262,000 after acquiring an additional 17,440,564 shares during the last quarter. Talaria Asset Management Pty Ltd bought a new stake in Ambev during the fourth quarter valued at $38,602,000. Two Sigma Advisers LP boosted its position in Ambev by 329.6% during the fourth quarter. Two Sigma Advisers LP now owns 16,354,000 shares of the company's stock valued at $30,255,000 after acquiring an additional 12,546,800 shares during the last quarter. Russell Investments Group Ltd. boosted its position in Ambev by 105.8% during the first quarter. Russell Investments Group Ltd. now owns 16,170,388 shares of the company's stock valued at $37,677,000 after acquiring an additional 8,312,561 shares during the last quarter. Finally, CANADA LIFE ASSURANCE Co boosted its position in Ambev by 101.1% during the fourth quarter. CANADA LIFE ASSURANCE Co now owns 15,639,612 shares of the company's stock valued at $29,512,000 after acquiring an additional 7,862,672 shares during the last quarter. Institutional investors own 8.13% of the company's stock.

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.

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