Compania Cervecerias Unidas (NYSE:CCU) Sets New 12-Month Low - Time to Sell?

Key Points

• CCU shares fell to a new 52-week low of $10.14, trading near $10.26, below both its 50-day and 200-day moving averages.
• Analyst sentiment is strongly negative: three analysts rate the stock as a sell and one as a hold, producing a “Strong Sell” consensus and an average price target of $11.50.
• The company met quarterly EPS expectations at a loss of $0.12 but exceeded revenue estimates with $659.17 million; institutional investors own approximately 24.1% of the shares.

Compania Cervecerias Unidas, S.A. (NYSE:CCU - Get Free Report)'s share price reached a new 52-week low on Monday. The company traded as low as $10.14 and last traded at $10.2550, with a volume of 47,404 shares traded. The stock had previously closed at $10.43.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the company. Weiss Ratings lowered Compania Cervecerias Unidas from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, August 11th. HSBC reaffirmed a "reduce" rating and set a $10.00 price target (down from $15.00) on shares of Compania Cervecerias Unidas in a report on Monday, September 21st. JPMorgan Chase & Co. dropped their price objective on shares of Compania Cervecerias Unidas from $14.00 to $13.00 and set an "underweight" rating on the stock in a research note on Monday, August 31st. Finally, Wall Street Zen downgraded shares of Compania Cervecerias Unidas from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. One analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Strong Sell" and a consensus target price of $11.50.

Compania Cervecerias Unidas Stock Performance

The stock has a 50 day moving average of $11.34 and a two-hundred day moving average of $11.48. The stock has a market capitalization of $1.90 billion, a PE ratio of 16.60, a P/E/G ratio of 1.03 and a beta of 0.49. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.84 and a quick ratio of 1.17.

Compania Cervecerias Unidas (NYSE:CCU - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.12) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.12). The firm had revenue of $659.17 million during the quarter, compared to analysts' expectations of $641.90 million. Compania Cervecerias Unidas had a return on equity of 6.77% and a net margin of 3.71%. Research analysts expect that Compania Cervecerias Unidas, S.A. will post 0.69 EPS for the current fiscal year.

Institutional Investors Weigh In On Compania Cervecerias Unidas

Hedge funds and other institutional investors have recently modified their holdings of the stock. Engineers Gate Manager LP purchased a new position in Compania Cervecerias Unidas in the 2nd quarter valued at approximately $169,000. GAMMA Investing LLC raised its stake in Compania Cervecerias Unidas by 65.0% in the 2nd quarter. GAMMA Investing LLC now owns 3,857 shares of the company's stock valued at $43,000 after purchasing an additional 1,520 shares during the last quarter. Bank of America Corp DE raised its position in shares of Compania Cervecerias Unidas by 5.4% in the first quarter. Bank of America Corp DE now owns 329,197 shares of the company's stock valued at $3,736,000 after buying an additional 16,834 shares during the last quarter. Royal Bank of Canada lifted its stake in shares of Compania Cervecerias Unidas by 7.1% during the 1st quarter. Royal Bank of Canada now owns 70,005 shares of the company's stock worth $795,000 after purchasing an additional 4,616 shares during the period. Finally, Dimensional Fund Advisors LP boosted its stake in Compania Cervecerias Unidas by 4.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 183,897 shares of the company's stock worth $2,087,000 after buying an additional 8,258 shares during the last quarter. 24.07% of the stock is currently owned by institutional investors and hedge funds.

About Compania Cervecerias Unidas

Compañía Cervecerías Unidas SA (CCU) is a Chile-based beverage company with operations spanning alcoholic and non-alcoholic drinks. The company traces its roots to Chile's brewing industry and was established in 1902. Its principal activities include the production, marketing and distribution of beer, soft drinks, bottled water, juices and other beverages.

CCU's beer portfolio includes Chilean brands such as Cristal, Escudo and Royal Guard, along with internationally recognized brands produced or distributed under license.

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