Ambev (NYSE:ABEV) Stock Rating Upgraded by Wall Street Zen

Ambev (NYSE:ABEV) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Other equities research analysts have also recently issued research reports about the stock. Scotiabank cut shares of Ambev from a “sector outperform” rating to a “sector perform” rating in a research note on Wednesday, July 15th. Weiss Ratings raised Ambev from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday. UBS Group set a $2.85 price target on Ambev in a research note on Tuesday, August 11th. Finally, Bank of America reaffirmed an “underperform” rating and issued a $3.30 price target on shares of Ambev in a report on Wednesday, October 7th. One analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Reduce” and a consensus price target of $3.13.

Ambev Price Performance

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

Ambev (NYSE:ABEV) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.04 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.04. The firm had revenue of $3.89 billion during the quarter, compared to the consensus estimate of $4.05 billion. Ambev had a net margin of 18.47% and a return on equity of 17.48%. Analysts anticipate that Ambev will post 0.21 earnings per share for the current year.

Insider Activity

In related news, insider Carla Smith De Vasconcellos Crippa Prado sold 60,757 shares of the stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $3.09, for a total value of $187,739.13. Following the completion of the transaction, the insider owned 80,707 shares of the company’s stock, valued at $249,384.63. This represents a 42.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Manuel Moreira sold 468,040 shares of the firm’s stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $3.08, for a total transaction of $1,441,563.20. Following the transaction, the director owned 3,000,000 shares of the company’s stock, valued at approximately $9,240,000. This represents a 13.50% decrease in their position. The disclosure for this sale is available in the SEC filing.

Institutional Investors Weigh In On Ambev

Institutional investors have recently added to or reduced their stakes in the stock. First Eagle Investment Management LLC increased its position in shares of Ambev by 0.7% during the 2nd quarter. First Eagle Investment Management LLC now owns 349,323,217 shares of the company’s stock worth $1,096,875,000 after purchasing an additional 2,338,660 shares in the last quarter. Renaissance Technologies LLC lifted its holdings in Ambev by 6.5% during the 1st quarter. Renaissance Technologies LLC now owns 27,354,300 shares of the company’s stock valued at $79,875,000 after purchasing an additional 1,674,900 shares during the last quarter. DJE Kapital AG acquired a new position in Ambev in the first quarter valued at about $14,778,000. Pzena Investment Management LLC boosted its position in Ambev by 6.7% in the first quarter. Pzena Investment Management LLC now owns 4,717,328 shares of the company’s stock valued at $13,775,000 after buying an additional 295,709 shares in the last quarter. Finally, Envestnet Asset Management Inc. boosted its position in Ambev by 0.8% in the second quarter. Envestnet Asset Management Inc. now owns 4,066,693 shares of the company’s stock valued at $12,769,000 after buying an additional 31,942 shares in the last quarter. 8.13% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Ambev

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

About Ambev

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.