Ambev (NYSE:ABEV) Stock Moved Up to “Buy” by Wall Street Zen

Wall Street Zen upgraded shares of Ambev (NYSE:ABEV – Free Report) from a hold rating to a buy rating in a research note issued to investors on Saturday morning,Wall Street Zen reports.

ABEV has been the topic of several other reports. Bank of America reiterated an “underperform” rating and issued a $3.30 price target on shares of Ambev in a research report on Wednesday. UBS Group set a $2.85 price objective on Ambev in a report on Tuesday, August 11th. Weiss Ratings raised shares of Ambev from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday. Finally, Scotiabank lowered shares of Ambev from a “sector outperform” rating to a “sector perform” rating in a research report on Wednesday, July 15th. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Ambev currently has a consensus rating of “Reduce” and a consensus target price of $3.13.

Read Our Latest Research Report on ABEV

Ambev Stock Performance

Shares of NYSE ABEV opened at $3.19 on Friday. Ambev has a 52-week low of $2.10 and a 52-week high of $3.45. The company has a quick ratio of 0.76, a current ratio of 1.02 and a debt-to-equity ratio of 0.02. The firm’s 50-day moving average price is $2.96 and its two-hundred day moving average price is $3.05. The stock has a market capitalization of $50.36 billion, a P/E ratio of 15.97, a P/E/G ratio of 2.01 and a beta of 0.58.

Ambev (NYSE:ABEV – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.04 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.04. The company had revenue of $3.89 billion during the quarter, compared to the consensus estimate of $4.05 billion. Ambev had a net margin of 18.47% and a return on equity of 17.48%. As a group, sell-side analysts forecast that Ambev will post 0.21 earnings per share for the current year.

Ambev Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, January 11th. Investors of record on Wednesday, September 23rd will be given a $0.0092 dividend. This represents a $0.04 annualized dividend and a yield of 1.1%. The ex-dividend date is Wednesday, September 23rd. Ambev’s payout ratio is 15.00%.

Insider Activity

In other Ambev news, insider Carla Smith De Vasconcellos Crippa Prado sold 60,757 shares of the business’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $3.09, for a total transaction of $187,739.13. Following the completion of the sale, the insider directly owned 80,707 shares of the company’s stock, valued at approximately $249,384.63. The trade was a 42.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Manuel Moreira sold 468,040 shares of the company’s stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $3.08, for a total transaction of $1,441,563.20. Following the sale, the director owned 3,000,000 shares of the company’s stock, valued at $9,240,000. The trade was a 13.50% decrease in their position. The disclosure for this sale is available in the SEC filing.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Envestnet Portfolio Solutions Inc. bought a new position in Ambev in the second quarter valued at approximately $32,000. Integrated Advisors Network LLC acquired a new stake in shares of Ambev in the 1st quarter valued at approximately $31,000. World Investment Advisors acquired a new stake in shares of Ambev in the 1st quarter valued at approximately $32,000. S Harris Financial Group LLC bought a new position in shares of Ambev in the fourth quarter valued at $28,000. Finally, Equitable Trust Co. bought a new position in shares of Ambev in the first quarter valued at $34,000. 8.13% of the stock is currently owned by institutional investors.

Key Ambev News

Here are the key news stories impacting Ambev this week:

  • Positive Sentiment: Zacks identified Ambev as a potential growth stock, citing business attributes that could support stronger returns. The commentary may be encouraging investors looking for growth within the consumer-staples sector. Is Ambev a Solid Growth Stock?
  • Positive Sentiment: Ambev’s balance sheet remains a relative strength, with debt-to-equity of just 0.02. The company also pays a modest dividend, supporting its appeal to income-oriented investors.
  • Neutral Sentiment: Zacks compared Ambev’s performance with other consumer-staples companies, including Archer Daniels Midland, giving investors context on its year-to-date relative performance rather than introducing a new company-specific catalyst. Consumer Staples Performance Comparison
  • Neutral Sentiment: Ambev reported no treasury-share transactions during September, indicating no recent buyback or share-issuance activity to influence the stock. No Treasury Share Transactions
  • Negative Sentiment: Corporate Affairs Vice President Carla Smith de Va Crippa sold 60,757 shares for approximately $187,739, reducing her direct ownership by 42.95%. Although the sale was disclosed after the transaction, the sizable reduction can weigh on sentiment. Ambev Insider Share Sale
  • Negative Sentiment: Brokerage sentiment remains cautious: Bank of America reaffirmed an “Underperform” rating with a $3.30 target, while the broader consensus is “Reduce,” with an average target of $3.13. This limits the upside implied by current valuation levels. Ambev Average Reduce Rating

Ambev Company Profile

(Get Free Report)

Ambev SA is a Brazilian beverage company and one of the largest brewers in Latin America. The company produces, distributes and sells beer, carbonated soft drinks, nonalcoholic beverages and other drink products through a portfolio that includes brands such as Brahma, Skol, Antarctica, Bohemia, Budweiser, Stella Artois and Guaraná Antarctica.

Founded in 1999 through the merger of Companhia Antarctica Paulista and Companhia Cervejaria Brahma, Ambev became part of Anheuser-Busch InBev following the latter’s combination with Anheuser-Busch in 2008.

See Also

Analyst Recommendations for Ambev (NYSE:ABEV)

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