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

Ambev S.A. (NYSE:ABEV) shares shot up 5.8% during mid-day trading on Thursday after the company announced a dividend. The company traded as high as $2.13 and last traded at $2.11. 32,185,018 shares traded hands during trading, a decline of 18% from the average session 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. Stockholders of record on Tuesday, March 18th will be issued a dividend of $0.0221 per share. The ex-dividend date of this dividend is Tuesday, March 18th. This represents a $0.09 annualized dividend and a dividend yield of 4.27%. Ambev’s payout ratio is 35.29%.

Analyst Ratings Changes

Several research firms have recently issued reports on ABEV. Bank of America downgraded shares of Ambev from a “buy” rating to a “neutral” rating in a report on Friday, January 17th. Citigroup restated a “neutral” rating on shares of Ambev in a report on Wednesday, January 22nd. StockNews.com initiated coverage on shares of Ambev in a report on Monday, January 27th. They set a “buy” rating on the stock. Finally, Barclays decreased their target price on shares of 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 research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $2.45.

Ambev Stock Performance

The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.89 and a current ratio of 1.20. The firm’s 50-day moving average price is $1.86 and its two-hundred day moving average price is $2.14. The firm has a market capitalization of $32.53 billion, a price-to-earnings ratio of 11.47, a price-to-earnings-growth ratio of 5.80 and a beta of 1.04.

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

Hedge Funds Weigh In On Ambev

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ABEV. Creative Planning boosted its position in Ambev by 15.5% in the third quarter. Creative Planning now owns 299,592 shares of the company’s stock valued at $731,000 after buying an additional 40,257 shares in the last quarter. Raymond James & Associates boosted its position in Ambev by 3.1% in the third quarter. Raymond James & Associates now owns 1,860,743 shares of the company’s stock valued at $4,540,000 after buying an additional 55,415 shares in the last quarter. Private Advisor Group LLC acquired a new position in Ambev in the third quarter valued at about $34,000. International Assets Investment Management LLC boosted its position in Ambev by 144.0% in the third quarter. International Assets Investment Management LLC now owns 31,549 shares of the company’s stock valued at $770,000 after buying an additional 18,619 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC acquired a new position in Ambev in the third quarter valued at about $587,000. 8.13% of the stock is currently 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.