Ambev S.A. (NYSE:ABEV) finished Thursday with a subtraction of -$0.06 to close at $2.87, a downside of -2.05 percent. An average of 7,805,780 shares of common stock have been traded in the last five days. There was a gain of $0.04 in the past week, and it reached a new high 6 times over the past 12 months. The last 20 days have seen an average of 10,720,600 shares traded, while the 50-day average volume stands at 13,008,722.
ABEV stock has decreased by -8.60% in the last month. The company shares reached their 1-month lowest point of $2.80 on 08/17/23. With the stock rallying to its 52-week high on 06/23/23, shares of the company touched a low of $2.40 and a high of $3.24 in 52 weeks. It has reached a new high 17 times so far this year and achieved 5.51% or $0.15 in price. In spite of this, the price is down -11.42% from the 52-week high.
Valuation Metrics
Ambev S.A. (ABEV) has a trailing price-to-earnings (P/E) ratio of 15.86. The stock’s beta is 1.12. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.72, the price-to-book (PB) ratio at 2.63.
The company has a payout ratio of 418.20%. The company’s most recent quarterly dividend payment was $0.1457 a share, representing a up of 73.66% from $0.0839 last year. Its latest increase dividend $0.0618 reported on Monday December 12 2022.
Financial Health
The quick ratio of Ambev S.A. for the three months ended June 29 was 0.70, and the current ratio was 1.00, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.03 and a total debt to equity ratio of 0.05 for the quarter ending June 29. Ambev S.A.’s EBITDA margin for the year ending June 29 is 27.85%, while its operating margin for the same period stands at 23.00%. Its gross profit as reported stood at $7.61 billion compared to revenue of $15.44 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Ambev S.A.’s return on assets was 10.40%.
Earnings Surprise
In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $2.75 billion in the quarter, while revenues were grew 12.36%. The analyst consensus anticipated Ambev S.A.’s latest quarter earnings to come in at $0.03 per share, but it turned out to be $0.03, a 0.00% surprise. For the quarter, EBITDA amounted to $1.06 billion.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Ambev S.A. (ABEV) price momentum. RSI 9-day as of the close on 24 August was 41.72%, suggesting the stock is Neutral, with historical volatility in this time frame at 19.77%.
As of today, ABEV’s price is $2.88 +1.41% or $0.04 from its 5-day moving average. ABEV is currently trading -6.51% lower than its 20-day SMA and +1.77% higher than its 100-day SMA. However, the stock’s current price level is -7.42% below the SMA50 and -11.42% below the SMA200.
The stochastic %K and %D were 39.62% and 30.38%, respectively, and the average true range (ATR) was 0.06. With the 14-day stochastic at 38.89% and the average true range at 0.06, the RSI (14) stands at 41.12%. The stock has reached 0.03 on the 9-day MACD Oscillator while the 14-day reading was at 0.01.
Analyst Ratings
BofA Securities upgraded Ambev S.A. (NYSE: ABEV) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Ambev S.A. (ABEV) among analysts is Overweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell ABEV, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 9 others rate it as a “buy”.
What is ABEV’s price target for the next 12 months?
Analysts predict a range of price targets between $2.60 and $5.00, with a median target of $3.74. Taking a look at these predictions, the average price target given by analysts for Ambev S.A. (ABEV) stock is $3.75.
