Ambev (NYSE:ABEV) Trading Up 5.8% After Dividend Announcement

Ambev S.A. (NYSE:ABEV)’s share price was up 5.8% on Thursday after the company announced a dividend. The company traded as high as $2.13 and last traded at $2.11. Approximately 32,185,018 shares were traded during mid-day trading, a decline of 18% from the average daily volume of 39,059,348 shares. The stock had previously closed at $1.99.

The newly announced dividend which will be paid on Monday, April 14th. Shareholders of record on Tuesday, March 18th will be given a $0.0221 dividend. The ex-dividend date of this dividend is Tuesday, March 18th. Ambev’s payout ratio is 38.89%.

Analysts Set New Price Targets

ABEV has been the topic of several recent analyst reports. Barclays decreased their target price on Ambev from $2.50 to $2.00 and set an “equal weight” rating on the stock in a research note on Tuesday, January 21st. StockNews.com assumed coverage on Ambev in a report on Monday, January 27th. They issued a “buy” rating for the company. Citigroup reiterated a “neutral” rating on shares of Ambev in a report on Wednesday, January 22nd. Finally, Bank of America downgraded Ambev from a “buy” rating to a “neutral” rating in a research report on Friday, January 17th. Four analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $2.45.

Ambev Stock Performance

The business has a 50 day simple moving average of $1.86 and a 200 day simple moving average of $2.14. The company has a quick ratio of 0.89, a current ratio of 1.20 and a debt-to-equity ratio of 0.02. The company has a market capitalization of $32.53 billion, a PE ratio of 11.53, a PEG ratio of 5.80 and a beta of 1.04.

Ambev (NYSE:ABEV) last announced its quarterly earnings data on Wednesday, February 26th. The company reported $0.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.01). The firm had revenue of $4.63 billion during the quarter, compared to analysts’ expectations of $22.42 billion. Ambev had a return on equity of 16.12% and a net margin of 17.02%. Equities research analysts predict that Ambev S.A. will post 0.18 EPS for the current fiscal year.

Institutional Trading of Ambev

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. MCIA Inc acquired a new stake in Ambev in the third quarter valued at approximately $25,000. Insight Inv LLC acquired a new stake in shares of Ambev in the fourth quarter worth approximately $25,000. Generation Capital Management LLC acquired a new stake in shares of Ambev in the fourth quarter worth approximately $28,000. Wealthstream Advisors Inc. acquired a new stake in shares of Ambev in the third quarter worth approximately $29,000. Finally, Naviter Wealth LLC acquired a new stake in shares of Ambev in the fourth quarter worth approximately $29,000. 8.13% of the stock is owned by institutional investors and hedge funds.

About Ambev

Ambev SA, through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products in Brazil, Central America and Caribbean, Latin America South, and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Budweiser, Bud Light, Beck, Leffe, Hoegaarden, Balboa ICE, Balboa, Atlas Golden Light, Atlas, Bucanero, Cristal, Mayabe, Presidente, Presidente Light, Brahma Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Bud 66, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith’s, and Kokanee brands.