Zacks Investment Research downgraded shares of Fomento Economico Mexicano SAB (NYSE:FMX) from a hold rating to a sell rating in a report released on Monday morning.
According to Zacks, “FEMSA underperformed the industry in the past six months mainly as its margins remain under pressure. Gross margin in the most recent quarter was hurt by growth of lower-margin businesses at FEMSA Comercio, while operating margin contracted due to soft Coca-Cola FEMSA margins. Further, margins at FEMSA Comercio’s Retail division are likely to remain soft going forward. The company also provided a cautious sales outlook for fourth-quarter 2017 and 2018 backed by high inflation rates and ongoing discussions to modernize trade. Estimates have been going down lately ahead of the fourth quarter earnings. However, FEMSA reported positive earnings surprise after four consecutive misses in the third quarter, while sales topped estimates after two straight misses. Moreover, the company is poised for long-term growth through its strategic actions, including expanding store base, diversifying business portfolio and focus on core business activities.”
A number of other equities research analysts have also commented on FMX. Barclays decreased their price target on Fomento Economico Mexicano SAB from $115.00 to $114.00 and set an overweight rating on the stock in a research report on Wednesday, October 11th. ValuEngine upgraded Fomento Economico Mexicano SAB from a hold rating to a buy rating in a research report on Thursday, December 14th. Finally, Credit Suisse Group lowered Fomento Economico Mexicano SAB from an outperform rating to a neutral rating in a research report on Wednesday, December 20th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, four have given a buy rating and two have assigned a strong buy rating to the company. Fomento Economico Mexicano SAB has a consensus rating of Buy and a consensus target price of $114.40.
Fomento Economico Mexicano SAB (NYSE FMX) traded up $0.84 during mid-day trading on Monday, hitting $96.16. The stock had a trading volume of 30,102 shares, compared to its average volume of 386,953. Fomento Economico Mexicano SAB has a 52 week low of $76.51 and a 52 week high of $103.82. The company has a market cap of $35,077.35, a price-to-earnings ratio of 13.41, a P/E/G ratio of 1.69 and a beta of 0.51. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.55 and a current ratio of 1.88.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FMX. Schroder Investment Management Group grew its position in Fomento Economico Mexicano SAB by 45.7% during the 3rd quarter. Schroder Investment Management Group now owns 2,148,339 shares of the company’s stock worth $206,262,000 after acquiring an additional 673,736 shares during the last quarter. Acadian Asset Management LLC lifted its holdings in Fomento Economico Mexicano SAB by 564.7% during the 4th quarter. Acadian Asset Management LLC now owns 503,802 shares of the company’s stock worth $47,307,000 after buying an additional 428,012 shares in the last quarter. Coronation Fund Managers Ltd. acquired a new position in Fomento Economico Mexicano SAB during the 4th quarter worth $38,046,000. Arrowstreet Capital Limited Partnership lifted its holdings in Fomento Economico Mexicano SAB by 456.6% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 354,545 shares of the company’s stock worth $34,866,000 after buying an additional 290,845 shares in the last quarter. Finally, Capital Research Global Investors acquired a new position in Fomento Economico Mexicano SAB during the 2nd quarter worth $14,198,000. Institutional investors and hedge funds own 21.22% of the company’s stock.
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Fomento Economico Mexicano SAB Company Profile
Fomento Economico Mexicano, SAB. de C.V. (FEMSA) is a holding company. The Company’s segments are Coca-Cola FEMSA, FEMSA Comercio-Retail Division and FEMSA Comercio-Fuel Division. The Company conducts its operations through holding companies, such as Coca-Cola FEMSA, SAB. de C.V. and subsidiaries (Coca-Cola FEMSA), which produces, distributes and sells beverages; FEMSA Comercio, SA de C.V.
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