Ambev S.A. (NYSE: ABEV) experienced a notable increase in its stock price, rising by 4.1% during trading on Tuesday. The stock reached a high of $2.40 before concluding at $2.3950. Approximately 21,890,387 shares were traded, marking a 38% decrease from its average daily volume of 35,203,320 shares. The previous closing price was $2.30.
Analyst Ratings and Price Targets
A number of analysts have recently provided updated assessments of Ambev’s stock. Sanford C. Bernstein reiterated a “market perform” rating and set a price target of $2.88 for the shares in a research note published on November 26, 2023. Meanwhile, Weiss Ratings maintained a “hold (c)” rating, while Zacks Research upgraded the company from a “strong sell” to a “hold” rating in a report released on September 30, 2023. Currently, nine investment analysts have assigned a hold rating, with one recommending a sell. According to MarketBeat.com, the consensus rating for Ambev stands at “Reduce,” with an average price target of $2.53.
Earnings Report and Special Dividend Announcement
Ambev recently reported its earnings results on October 30, 2023. The company posted earnings of $0.04 per share for the quarter, matching analysts’ expectations. Ambev recorded a net margin of 17.90% and a return on equity of 15.81%. The revenue for the quarter was $3.90 billion, slightly below the consensus estimate of $3.97 billion. Analysts expect Ambev to report an annual earnings per share (EPS) of $0.18 for the current fiscal year.
Additionally, the company declared a special dividend, scheduled for payment on January 9, 2024. Shareholders of record on December 22, 2023 will receive a dividend of $0.049 per share. The ex-dividend date is also set for December 22, 2023, representing a significant yield of 1,465.0%. Currently, Ambev’s dividend payout ratio stands at 188.89%.
Institutional Investments and Shareholder Movements
Recent activity among large investors indicates increased interest in Ambev. The State of Wyoming raised its stake by 11.3% during the first quarter, owning 39,606 shares valued at $92,000 after acquiring an additional 4,030 shares. Other notable movements include Blair William & Co. IL, which increased its holdings by 3.4% in the third quarter, now holding 140,579 shares valued at $313,000.
Similarly, West Family Investments Inc. expanded its stake by 10.4%, bringing its total to 51,819 shares valued at $116,000. Signaturefd LLC raised its holdings by 63.2% during the second quarter, now owning 12,712 shares worth $31,000. Lastly, Jones Financial Companies Lllp increased its position by 4.8%, currently holding 111,999 shares valued at $258,000. Overall, hedge funds and institutional investors control 8.13% of the stock.
Ambev, headquartered in São Paulo, Brazil, is a leading beverage company producing a diverse range of alcoholic and non-alcoholic drinks. Its operations encompass brewing, distribution, and marketing, with a focus on beer and various soft drinks. The company emerged from the 1999 merger of two historic Brazilian breweries and has since become part of a larger global brewing group through various consolidations in the industry.
