Ambev (NYSE:ABEV) Earns “Underperform” Rating from Bank of America

Ambev (NYSE:ABEV)‘s stock had its “underperform” rating reiterated by stock analysts at Bank of America in a research report issued to clients and investors on Wednesday, Marketbeat reports. They presently have a $3.30 price objective on the stock. Bank of America‘s price target indicates a potential upside of 3.29% from the company’s current price.

A number of other research analysts also recently commented on the stock. Weiss Ratings reiterated a “hold (c+)” rating on shares of Ambev in a research note on Monday, August 3rd. UBS Group set a $2.85 price objective on shares of Ambev in a research note on Tuesday, August 11th. Scotiabank downgraded shares of Ambev from a “sector outperform” rating to a “sector perform” rating in a research note on Wednesday, July 15th. Finally, Wall Street Zen downgraded shares of Ambev from a “buy” rating to a “hold” rating in a research note on Saturday, August 22nd. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $3.13.

Ambev Stock Up 0.2%

NYSE ABEV traded up $0.01 during trading hours on Wednesday, reaching $3.20. 17,949,705 shares of the company traded hands, compared to its average volume of 26,541,369. Ambev has a 12 month low of $2.10 and a 12 month high of $3.45. The company has a current ratio of 1.02, a quick ratio of 0.76 and a debt-to-equity ratio of 0.02. The stock has a market capitalization of $50.36 billion, a PE ratio of 15.98, a PEG ratio of 2.02 and a beta of 0.58. The company has a 50 day moving average of $2.96 and a two-hundred day moving average of $3.05.

Ambev (NYSE:ABEV) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.04 EPS for the quarter, meeting analysts’ consensus estimates of $0.04. Ambev had a net margin of 18.47% and a return on equity of 17.48%. The firm had revenue of $3.89 billion for the quarter, compared to the consensus estimate of $4.05 billion. As a group, equities analysts expect that Ambev will post 0.2 earnings per share for the current year.

Insider Transactions at Ambev

In other news, Director Manuel Moreira sold 468,040 shares of the firm’s stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $3.08, for a total value of $1,441,563.20. Following the transaction, the director directly owned 3,000,000 shares in the company, valued at approximately $9,240,000. This trade represents a 13.50% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Carla Smith De Vasconcellos Crippa Prado sold 60,757 shares of the firm’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 transaction, the insider owned 80,707 shares in the company, valued at approximately $249,384.63. The trade was a 42.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure.

Institutional Trading of Ambev

Hedge funds have recently bought and sold shares of the company. Royal Bank of Canada grew its stake in shares of Ambev by 18.1% in the 1st quarter. Royal Bank of Canada now owns 3,700,035 shares of the company’s stock worth $10,804,000 after purchasing an additional 566,949 shares during the last quarter. First Eagle Investment Management LLC grew its stake in shares of Ambev by 0.7% in the 2nd quarter. First Eagle Investment Management LLC now owns 349,323,217 shares of the company’s stock worth $1,096,875,000 after purchasing an additional 2,338,660 shares during the last quarter. Cook & Bynum Capital Management LLC acquired a new position in shares of Ambev in the 2nd quarter worth approximately $4,251,588. Engineers Gate Manager LP grew its stake in shares of Ambev by 712.8% in the 2nd quarter. Engineers Gate Manager LP now owns 1,837,660 shares of the company’s stock worth $5,770,000 after purchasing an additional 1,611,577 shares during the last quarter. Finally, ARGA Investment Management LP grew its stake in shares of Ambev by 62.0% in the 1st quarter. ARGA Investment Management LP now owns 967,134 shares of the company’s stock worth $2,824,000 after purchasing an additional 370,112 shares during the last quarter. 8.13% of the stock is currently owned by institutional investors.

Trending Headlines about Ambev

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

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.