Ambev (NYSE:ABEV) Hits New 1-Year Low – What Happened?

On Tuesday, shares of Ambev S.A. (NYSE:ABEV) fell to a new 52-week low during trading. The stock hit a low of $1.88 before rebounding slightly to close at $1.90. This change occurred with a significant trading volume of 69,587,984 shares compared to the previous closing price of $2.06.

Analyst Ratings

In related news, StockNews.com began its coverage of Ambev with a research note issued on Tuesday. The analysts recommended a “buy” rating for the company, indicating potential optimism about its future performance.

Stock Performance Overview

Ambev has a 50-day simple moving average of $2.20 and a 200-day simple moving average of $2.22. The company maintains a quick ratio of 0.89 and a current ratio of 1.20. Its debt-to-equity ratio stands at a low 0.02. These metrics point towards a market capitalization of approximately $29.93 billion, a price-to-earnings (P/E) ratio of 10.56, a P/E/G ratio of 6.67, and a beta of 1.05, suggesting stability relative to market fluctuations.

Dividend Announcement

Recently, Ambev announced an annual dividend payment, which is scheduled to be paid on January 9, 2024. Shareholders on record as of December 23, 2023, will receive a dividend of $0.0414 per share. The ex-dividend date was also on December 23, with the reported yield from this dividend being 1.93%. The company has a dividend payout ratio of 38.89%, indicative of how much of its earnings are returned to shareholders.

Institutional Investment Changes

Institutional investors have shown varying interest in Ambev recently. For instance, Raymond James & Associates significantly increased its ownership stake by 154.0% during the second quarter, acquiring over one million additional shares to hold more than 1.8 million shares valued at about $3.7 million. Similarly, Bank of New York Mellon Corp added 26.5% to their shares, bringing their total shares to nearly 948,000, worth about $1.94 million. Allspring Global Investments Holdings LLC also saw an explosive growth of 323.2%, now holding over 9.9 million shares valued at around $20.32 million. A notable increase was also reported by Atomi Financial Group Inc., which raised its stake by 49.3% during the same quarter. Overall, about 8.13% of Ambev’s stock is held by hedge funds and institutional investors, suggesting a strong presence in the stock among large investment groups.

Company Insight

Ambev S.A. operates in the beverage production sector, engaging in the manufacturing, distribution, and sale of beer, soft drinks, and other beverages across Brazil, Central America, the Caribbean, and parts of North America. The company is known for its portfolio of popular beer brands, including Skol, Brahma, and Budweiser, among others.

Ambev, Stocks, Investors