Ambev (NYSE:ABEV) Trading 5.8% Higher Following Dividend Announcement

Ambev S.A. (NYSE:ABEV)’s share price was up 5.8% during trading 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 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. Investors of record on Tuesday, March 18th will be given a dividend of $0.0221 per share. The ex-dividend date is Tuesday, March 18th. Ambev’s payout ratio is 38.89%.

Analysts Set New Price Targets

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

Ambev Price Performance

The company has a current ratio of 1.20, a quick ratio of 0.89 and a debt-to-equity ratio of 0.02. The stock has a market cap of $32.53 billion, a PE ratio of 11.53, a P/E/G ratio of 5.80 and a beta of 1.04. The company has a fifty day moving average of $1.86 and a 200-day moving average of $2.14.

Ambev (NYSE:ABEV) last released its earnings results on Wednesday, February 26th. The company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.06 by ($0.01). The company had revenue of $4.63 billion for the quarter, compared to analyst estimates of $22.42 billion. Ambev had a return on equity of 16.12% and a net margin of 17.02%. Sell-side analysts expect that Ambev S.A. will post 0.18 EPS for the current fiscal year.

Institutional Trading of Ambev

Institutional investors and hedge funds have recently made changes to their positions in the company. Talaria Asset Management Pty Ltd purchased a new position in shares of Ambev during the 4th quarter worth approximately $38,602,000. Jefferies Financial Group Inc. purchased a new position in shares of Ambev in the 4th quarter worth $99,000. Mackenzie Financial Corp purchased a new position in shares of Ambev in the 4th quarter worth $801,000. Arrowpoint Investment Partners Singapore Pte. Ltd. purchased a new position in Ambev in the fourth quarter valued at about $1,850,000. Finally, Two Sigma Advisers LP raised its position in Ambev by 329.6% in the fourth quarter. Two Sigma Advisers LP now owns 16,354,000 shares of the company’s stock valued at $30,255,000 after purchasing an additional 12,546,800 shares during the period. 8.13% of the stock is owned by hedge funds and other institutional investors.

Ambev Company Profile

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.