Ambev S.A. (NYSE: ABEV) Seen Running Too Hot, Let’s Look At This More Closely


    First Eagle Investment Management.. recently announced the acquisition of new stake in Ambev S.A. (NYSE:ABEV). The institutional investor has increased its shareholding in the Consumer Defensive company by 26.59% to 209.03 million shares with purchase of 43.9 million shares. This fresh investment now brings its stake to 1.33% valued currently at $560.21 million. In addition, Westwood Global Investments LLC raised its holdings by 23.54 million to 71.35 million shares. And Credit Suisse Securities (USA) LL.. has lifted its position by 6.87% or 3.44 million shares – to 53.5 million shares.

    With over 20.43 million Ambev S.A. (ABEV) shares trading Monday and a closing price of $2.25 on the day, the dollar volume was approximately $45.96 million. The shares have shown a negative weekly performance of -3.43% and its price on 08/31/20 lost nearly -5.46%. Currently, there are 15.73B common shares owned by the public and among those 4.39B shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for ABEV have a consensus price objective of $3.23. The analysts have set the share’s price value over the next 12 months at a high of $4.50 and a low of $2.50 should the stock experience a downside. Incidentally, analysts’ outlook for the Ambev S.A. stock is 3.00 for the next 12 months. The average price target is 24.5% above its last price level and an upside to the estimated low will see the stock gain 10.0% over that period. But an upside of 50.0% will see the stock hit the forecast high price target while mean target price for the stock is $3.13.

    The top 3 mutual fund holders in Ambev S.A. are First Eagle Global Fund, Harding Loevner International Equ, and First Eagle Overseas Fund. First Eagle Global Fund owns 94.14 million shares of the company’s stock, all valued at over $252.28 million. The company bought an additional 94.14 million shares recently to bring their total holdings to about 0.60% of the shares outstanding. Harding Loevner International Equ sold -4.7 million shares to see its total holdings shrink to 73.58 million shares valued at over $197.19 million and representing 0.47% of the shares outstanding. First Eagle Overseas Fund bought 41.62 million shares to bring its total holdings to over 41.62 million shares at a value of $111.54 million. First Eagle Overseas Fund now owns shares totaling to 0.27% of the shares outstanding.

    Shares of Ambev S.A. (NYSE: ABEV) opened at $2.33, down -$0.05 from a prior closing price of $2.38. However, the script later closed the day at $2.25, down -5.46%. The company’s stock has a 5-day price change of -3.43% and -10.36% over the past three months. ABEV shares are trading -51.72% year to date (YTD), with the 12-month market performance down to -49.17% lower. It has a 12-month low price of $1.90 and touched a high of $4.75 over the same period. Currently, 20.43 million shares have been traded, compared to an average intraday trading volume of 34.11 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -6.72%, -13.61%, and -27.98% respectively.

    Institutional ownership of Ambev S.A. (NYSE: ABEV) shares accounts for 8.30% of the company’s 15.73B shares outstanding. Mutual fund holders own 3.87%, while other institutional holders and individual stakeholders account for 4.98% and — respectively.

    It has a market capitalization of $35.40B. The stock’s trailing 12-month PE ratio is 12.78, while the earnings-per-share (ttm) stands at $0.18. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.50% over the week and 3.58% over the month.

    Analysts forecast that Ambev S.A. (ABEV) will achieve an EPS of $0.02 for the current quarter, $0.04 for the next quarter and $0.13 for 2021. The lowest estimate earnings-per-share for the quarter is $0.02 while analysts give the company a high EPS estimate of $0.03. Comparatively, EPS for the current quarter was $0.04 a year ago. Earnings per share for the fiscal year are expected to decrease by -47.40%, and 30.00% over the next financial year. EPS should shrink at an annualized rate of -8.20% over the next five years, compared to 39.83% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate Ambev S.A. (ABEV) as a “Hold” at a consensus score of 3.00. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 6 of the 15 advise that investors “hold,” and 3 rated it as a “Sell.”

    Looking at the support for the ABEV, a number of firms have released research notes about the stock. JP Morgan stated their Neutral rating for the stock in a research note on July 31, 2020, with the firm’s price target at. JP Morgan coverage for the Ambev S.A. (ABEV) stock in a research note released on March 24, 2020 offered a Underweight rating with a price target of. HSBC Securities was of a view on February 25, 2020 that the stock is Reduce, while Barclays gave the stock Underweight rating on December 03, 2019, issuing a price target of. Barclays on their part issued Equal Weight rating on August 27, 2019.


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