Ambev’s (ABEV) Underperform Rating Reiterated at Bank of America

Bank of America reaffirmed their underperform rating on shares of Ambev (NYSE:ABEV) in a research note released on Wednesday morning, MarketBeat reports. The brokerage currently has a $3.30 target price on the stock.

Several other research analysts have also recently weighed in on ABEV. Scotiabank cut shares of Ambev from a “sector outperform” rating to a “sector perform” rating in a research report on Wednesday, July 15th. Wall Street Zen lowered shares of Ambev from a “buy” rating to a “hold” rating in a research report on Saturday, August 22nd. UBS Group set a $2.85 price target on shares of Ambev in a research note on Tuesday, August 11th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Ambev in a report on Monday, August 3rd. 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 company’s stock. According to MarketBeat.com, the company has an average rating of “Reduce” and an average target price of $3.13.

Ambev Price Performance

NYSE:ABEV opened at $3.19 on Wednesday. Ambev has a 52-week low of $2.10 and a 52-week high of $3.45. The stock has a fifty day moving average of $2.96 and a 200 day moving average of $3.05. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.76 and a current ratio of 1.02. The firm has a market capitalization of $50.36 billion, a price-to-earnings ratio of 15.97, a P/E/G ratio of 2.01 and a beta of 0.58.

Ambev (NYSE:ABEV) last announced its earnings results on Wednesday, July 29th. The company reported $0.04 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.04. Ambev had a return on equity of 17.48% and a net margin of 18.47%. The business had revenue of $3.89 billion for the quarter, compared to analyst estimates of $4.05 billion. On average, research analysts expect that Ambev will post 0.21 EPS for the current fiscal year.

Ambev Dividend Announcement

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

Insider Activity

In related news, 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 transaction, the insider directly owned 80,707 shares of the company’s stock, valued at approximately $249,384.63. This trade represents a 42.95% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Manuel Moreira sold 468,040 shares of the business’s stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $3.08, for a total value of $1,441,563.20. Following the completion of 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 SEC filing for this sale provides additional information.

Institutional Investors Weigh In On Ambev

A number of hedge funds have recently made changes to their positions in ABEV. CHICAGO TRUST Co NA lifted its position in Ambev by 2.2% in the first quarter. CHICAGO TRUST Co NA now owns 173,886 shares of the company’s stock valued at $508,000 after purchasing an additional 3,702 shares during the last quarter. PNC Financial Services Group Inc. grew its holdings in shares of Ambev by 7.1% in the first quarter. PNC Financial Services Group Inc. now owns 62,574 shares of the company’s stock worth $183,000 after purchasing an additional 4,121 shares during the last quarter. Waverly Advisors LLC grew its holdings in shares of Ambev by 1.3% in the second quarter. Waverly Advisors LLC now owns 349,336 shares of the company’s stock worth $1,097,000 after purchasing an additional 4,437 shares during the last quarter. United Capital Financial Advisors LLC increased its stake in shares of Ambev by 26.7% in the second quarter. United Capital Financial Advisors LLC now owns 23,467 shares of the company’s stock worth $74,000 after buying an additional 4,941 shares during the period. Finally, Wynn Capital LLC increased its stake in shares of Ambev by 3.7% in the second quarter. Wynn Capital LLC now owns 150,285 shares of the company’s stock worth $472,000 after buying an additional 5,420 shares during the period. 8.13% of the stock is currently owned by institutional investors.

More 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

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.