Ambev S.A. (ABEV) Outlook Starting To Look Brighter?


First Eagle Investment Management.. has recently announced that it has increased stake in Ambev S.A. (NYSE:ABEV) by 26.59%. After grabbing 209.03 million shares, the institutional investor is now in possession of 43.9 million shares of the Consumer Defensive Company. The new investment brought the stake of investor firm to 1.33% having worth around $560.21 million. Moreover, Westwood Global Investments LLC increased its share by 23.54 million to have a control over 71.35 million shares. And Credit Suisse Securities (USA) LL.. raised its holdings to 3.44 million shares by acquiring 53.5 million shares or 0.34% of the stake.

Ambev S.A. (ABEV) concluded trading on 08/27/20 at a closing price of $2.29, with 27.05 million shares of worth about $61.96 million changed hands on the day. Weekly performance of the stock remained negative as price took a plunge of -2.14% during that period and on Thursday the price saw a loss of about 0.00%. Currently the company’s common shares owned by public are about 15.73B shares, out of which, 4.39B shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 15 analysts are covering the ABEV stock and their offered price forecasts bring an average price target of $3.23. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $4.50 and could fall to a lowest price of $2.50. Analysts also issued an outlook of 3.00 for the Ambev S.A. stock for next 12 months. The stock’s current price level is 21.58% above of average price target set by the analysts, while a rise to estimated low would result in gain of 8.4 for the stock. However, touching the estimated high of $4.50 would mean a gain of 49.11% for the stock.

First Eagle Global Fund, Harding Loevner International Equ, and First Eagle Overseas Fund are the top 3 mutual funds which are holding stakes in Ambev S.A. First Eagle Global Fund is currently holding 94.14 million shares of worth totaling $252.28 million. The company recently came buying 94.14 million shares which brought its stake up to 0.60% of the company’s outstanding shares. Harding Loevner International Equ sold -4.7 million shares, after which its hold over company’s outstanding shares shrunk to 0.47%, leaving 73.58 million shares with the mutual fund that have a worth of about $197.19 million. First Eagle Overseas Fund, after buying 41.62 million shares, have now control over 0.27% of the stake in the company. It holds 41.62 million shares of worth $111.54 million.

Ambev S.A. (NYSE: ABEV) started trading at $2.31, above $0.02 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $2.29, or with a loss of 0.00%. Stock saw a price change of -2.14% in past 5 days and over the past one month there was a price change of -21.03%. Year-to-date (YTD), ABEV shares are showing a performance of -50.86% which decreased to -46.50% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $1.90 but also hit the highest price of $4.75 during that period. While comparing its average daily trading volume of 34.89 million shares, we see that about 27.05 million changed hands on the day. The stock is currently trading -6.70% below its 20-day simple moving average (SMA20), while that difference is down -12.45% for SMA50 and it goes to -27.10% lower than SMA200.

First Eagle Investment Management.. acquired 209.03 million shares of Ambev S.A. having value of about $560.21 million. Data submitted at the U.S SEC by First Eagle Investment Management.. revealed that the firm now holds 43.9 million shares in the company valued at close to $100539019.58, or have control over 26.59% stake in the company. Ambev S.A. (NYSE: ABEV) currently have 15.73B outstanding shares and institutions hold larger chunk of about 8.30% of that. Holding of mutual funds in the company is about 3.88% while other institutional holders and individual stake holders have control over 4.97% and — of the stake respectively.

The stock has a current market capitalization of $36.03B. PE ratio of stock for trailing 12 months is 13.01, while it has posted earnings per share of $0.18 in the same period. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for ABEV, volatility over the week remained 2.97% while standing at 3.82% over the month.

Analysts are in expectations that Ambev S.A. (ABEV) stock would likely to be making an EPS of $0.02 in the current quarter, while forecast for next quarter ESPS is $0.04 and it is $0.13 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.02 which is $0.03 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.04 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -47.40% while it is estimated to increase by 30.00% in next year. EPS is likely to shrink at an annualized rate of -8.20% for next 5-years, compared to annual growth of 39.83% made by the stock over the past 5-years.

Analysts at 15 brokerage firms have issued recommendations for the Ambev S.A. (ABEV)’s stock and average of those rates the stock at a “Hold” and assign it a score of 3.00. Out of those 15 Wall Street analysts, 4 recommended a “Buy” rating, while 6 were in favor recommending the stock as a “Hold” and 3 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by JP Morgan on July 31, 2020 offering a Neutral rating for the stock and assigned a target price of to it. Coverage by JP Morgan stated Ambev S.A. (ABEV) stock as an Underweight in their note to investors on March 24, 2020, suggesting a price target of for the stock. On February 25, 2020, HSBC Securities Downgrade their recommendations, while on December 03, 2019, Barclays Downgrade their ratings for the stock with a price target of. Stock get an Equal weight rating from Barclays on August 27, 2019.


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