Ambev (NYSE:ABEV) Lowered to Strong Sell Rating by UBS Group

Ambev (NYSE:ABEV) was downgraded by analysts at UBS Group from a “hold” rating to a “strong sell” rating in a note issued to investors on Thursday, MarketBeat.com reports. They currently have a $2.65 price objective on the stock. UBS Group’s price target would indicate a potential downside of 13.26% from the stock’s current price.

Several other analysts have also recently commented on the stock. Weiss Ratings raised shares of Ambev from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, March 5th. Wall Street Zen cut shares of Ambev from a “buy” rating to a “hold” rating in a research note on Monday, March 30th. Finally, Barclays increased their price target on shares of Ambev from $2.50 to $3.00 and gave the company an “equal weight” rating in a research note on Tuesday, February 17th. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Ambev presently has an average rating of “Hold” and a consensus price target of $2.84.

Ambev Price Performance

Shares of Ambev stock opened at $3.06 on Thursday. The company has a current ratio of 0.96, a quick ratio of 0.73 and a debt-to-equity ratio of 0.03. The stock has a market capitalization of $48.14 billion, a price-to-earnings ratio of 16.97, a P/E/G ratio of 2.24 and a beta of 0.65. Ambev has a 1-year low of $2.10 and a 1-year high of $3.24. The firm’s 50-day moving average price is $3.00 and its two-hundred day moving average price is $2.65.

Ambev (NYSE:ABEV) last released its quarterly earnings results on Friday, February 13th. The company reported $0.05 EPS for the quarter, meeting the consensus estimate of $0.05. Ambev had a net margin of 17.75% and a return on equity of 16.41%. The business had revenue of $4.50 billion for the quarter, compared to analysts’ expectations of $4.28 billion. On average, equities analysts predict that Ambev will post 0.18 earnings per share for the current fiscal year.

Insider Activity at Ambev

In related news, insider De Lacerda Eduardo Cavalcanti sold 152,386 shares of the firm’s stock in a transaction on Friday, March 27th. The shares were sold at an average price of $2.85, for a total transaction of $434,300.10. Following the sale, the insider directly owned 223,340 shares in the company, valued at $636,519. This trade represents a 40.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. NewEdge Advisors LLC grew its position in Ambev by 17.7% in the fourth quarter. NewEdge Advisors LLC now owns 23,578 shares of the company’s stock valued at $58,000 after purchasing an additional 3,553 shares in the last quarter. Perigon Wealth Management LLC grew its position in Ambev by 34.3% in the fourth quarter. Perigon Wealth Management LLC now owns 15,411 shares of the company’s stock valued at $38,000 after purchasing an additional 3,936 shares in the last quarter. Federation des caisses Desjardins du Quebec grew its position in Ambev by 4.4% in the fourth quarter. Federation des caisses Desjardins du Quebec now owns 100,451 shares of the company’s stock valued at $248,000 after purchasing an additional 4,237 shares in the last quarter. Blair William & Co. IL grew its position in shares of Ambev by 3.4% in the 3rd quarter. Blair William & Co. IL now owns 140,579 shares of the company’s stock valued at $313,000 after acquiring an additional 4,557 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. grew its position in shares of Ambev by 2.0% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 240,887 shares of the company’s stock valued at $595,000 after acquiring an additional 4,700 shares during the period. Institutional investors own 8.13% of the company’s stock.

Ambev Company Profile

Ambev (NYSE: ABEV) is a Brazilian-based beverage company that produces, distributes and markets a broad portfolio of alcoholic and non-alcoholic drinks. The company’s core business centers on brewing and selling beer, alongside a range of soft drinks, bottled water, energy drinks and other malt-based beverages. Headquartered in São Paulo, Ambev operates an integrated value chain that covers manufacturing, packaging, logistics and commercial sales to retail, on-premise and institutional customers.

The company traces its origins to the 1999 merger of two historic Brazilian breweries, and later became part of the broader global brewing group through subsequent industry consolidations.