Wall Street Zen Downgrades Compania Cervecerias Unidas (NYSE:CCU) to Hold

Key Points

• Wall Street Zen downgraded CCU from “Buy” to “Hold.” With additional mixed analyst revisions, the stock has an overall “Reduce” rating and an average price target of $12.00.
• CCU opened at $11.99, near its average analyst price target, with a $2.22 billion market capitalization and a 52-week range of $10.71 to $15.36.
• The company’s latest quarterly results matched the EPS estimate at a loss of $0.12 per share, while revenue of $659.17 million exceeded analyst expectations of $641.90 million; institutional investors own 24.07% of the stock.

Compania Cervecerias Unidas (NYSE:CCU - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

Several other equities research analysts also recently commented on the company. Weiss Ratings downgraded Compania Cervecerias Unidas from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, June 8th. Zacks Research raised shares of Compania Cervecerias Unidas from a "strong sell" rating to a "hold" rating in a research report on Monday, June 15th. Two investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and an average price target of $12.00.

Compania Cervecerias Unidas Price Performance

Compania Cervecerias Unidas stock opened at $11.99 on Friday. The stock has a market capitalization of $2.22 billion, a price-to-earnings ratio of 19.35, a PEG ratio of 0.82 and a beta of 0.52. Compania Cervecerias Unidas has a 52-week low of $10.71 and a 52-week high of $15.36. The stock's 50 day moving average price is $11.37 and its two-hundred day moving average price is $12.18. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.46 and a current ratio of 1.84.

Compania Cervecerias Unidas (NYSE:CCU - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported ($0.12) earnings per share for the quarter, meeting the consensus estimate of ($0.12). The company had revenue of $659.17 million during the quarter, compared to analyst estimates of $641.90 million. Compania Cervecerias Unidas had a net margin of 3.71% and a return on equity of 6.77%. On average, equities analysts predict that Compania Cervecerias Unidas will post 0.75 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Wellington Management Group LLP grew its position in Compania Cervecerias Unidas by 27.2% during the 3rd quarter. Wellington Management Group LLP now owns 2,461,212 shares of the company's stock worth $29,830,000 after acquiring an additional 526,665 shares during the last quarter. Empowered Funds LLC purchased a new stake in shares of Compania Cervecerias Unidas during the fourth quarter valued at approximately $6,748,000. Bank of America Corp DE boosted its stake in shares of Compania Cervecerias Unidas by 5.4% during the first quarter. Bank of America Corp DE now owns 329,197 shares of the company's stock valued at $3,736,000 after purchasing an additional 16,834 shares during the period. Marshall Wace LLP grew its holdings in shares of Compania Cervecerias Unidas by 83.8% in the second quarter. Marshall Wace LLP now owns 255,380 shares of the company's stock worth $3,300,000 after purchasing an additional 116,418 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in shares of Compania Cervecerias Unidas by 4.7% in the first 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 period. Institutional investors own 24.07% of the company's stock.

Compania Cervecerias Unidas Company Profile

Compañía Cervecerías Unidas SA NYSE: CCU is a Chile-based beverages company with operations across Latin America. The company engages in the production, marketing and distribution of beer, soft drinks, wines, mineral water and other non-alcoholic beverages. Through a combination of owned brands and licensing agreements, CCU serves both domestic and export markets with a diversified portfolio designed to meet evolving consumer tastes.

In its beer segment, CCU produces flagship brands such as Cristal, Escudo and Royal Guard, while also brewing international labels under license, including Heineken in select markets.

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