Ambev (NYSE:ABEV) Hits New 12-Month Low – Should You Sell?

On January 1st, 2025, Ambev S.A. (NYSE:ABEV) experienced a drop in its stock price, reaching a new 52-week low during intraday trading on Monday. The stock hit a low of $1.86 before closing at $1.87, with a trading volume of 7,061,347 shares.

Analysts' Opinions on Ambev

In a recent report dated December 24th, StockNews.com announced the initiation of coverage on Ambev, assigning it a "buy" rating. This positive outlook may offer some reassurance to investors amid the current stock performance.

Ambev's Financial Overview

Ambev currently has a market capitalization of approximately $29.14 billion. The company’s price-to-earnings ratio stands at 10.28 while its price-to-earnings-growth ratio is at 6.67. Investors should also note that Ambev has a beta of 1.05, indicating moderate volatility in comparison to the broader market. The company reports a debt-to-equity ratio of 0.02, a quick ratio of 0.89, and a current ratio of 1.20. As for the stock’s performance, its fifty-day moving average is $2.15, and the two-hundred-day moving average is $2.21.

Dividend Announcement

Recently, Ambev declared its annual dividend, which is set to be paid on January 9th. Stockholders recorded as of December 23rd will receive a dividend payout of $0.0414 per share, leading to a dividend yield of 1.93%. The company's dividend payout ratio is currently at 38.89%.

Hedge Fund Activity

Recent activities among hedge funds reveal a mix of buying and selling of Ambev shares. In the second quarter, Private Management Group Inc. acquired a new stake in the company valued around $19,149,000. Renaissance Technologies LLC increased its holdings by 27.7%, now owning 34,133,000 shares worth approximately $69,973,000 after acquiring an additional 7,412,395 shares. Marshall Wace LLP significantly raised its position by 324.8%, accumulating 8,324,037 shares valued at about $17,064,000. Kiltearn Partners LLP also boosted its stake by 43.3%, currently owning 14,575,900 shares valued at approximately $29,881,000. Finally, Sagil Capital LLP made a new investment in Ambev worth $8,762,000. Overall, hedge funds and institutional investors hold about 8.13% of the company’s outstanding shares.

Ambev Company Profile

Ambev S.A. engages in the production, distribution, and sale of an extensive array of beverages across Brazil, Central America, the Caribbean, Latin America South, and Canada. The company's product offerings include beer and other alcoholic beverages, as well as carbonated and non-carbonated soft drinks. Ambev's beer brands include popular names such as Skol, Brahma, Budweiser, and Stella Artois among many others.

Conclusion

As Ambev hits a new 12-month low, investors may be weighing potential actions regarding their holdings. With mixed signals from hedge funds and analyst recommendations, the decision to sell or hold should be carefully considered based on individual investment strategies and market conditions.

Ambev, Stocks, Analysis