Fomento Economico Mexicano SAB (NYSE:FMX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “FEMSA is on track to drive growth through its strategic measures, which include increasing store count, diversifying its business portfolio and focusing on core business activities. The company's strong cash flow generation capacity also enables it to make incremental investments in business expansion. However, the company has been facing difficult times, mainly due to currency headwinds, which has been weighing on Coca-Cola FEMSA for a while now. Also, soft Heineken performance has been a hurdle in the recent past. Further, FEMSA has been witnessing pressurized margins owing to growth of lower-margin businesses. We believe that persistence of these headwinds and regulatory pressure may impact future results. Nonetheless, estimates have been stable lately ahead of third-quarter earnings release of the company that has mixed record of earnings surprises in recent quarters. Also, FEMSA's focus on achieving growth via acquisitions bodes well.”
Other equities analysts have also issued reports about the stock. Barclays PLC reiterated a “buy” rating and issued a $110.00 price target on shares of Fomento Economico Mexicano SAB in a research note on Tuesday, July 19th. HSBC upgraded shares of Fomento Economico Mexicano SAB from a “hold” rating to a “buy” rating in a research note on Wednesday, August 10th. One equities research analyst has rated the stock with a sell rating and four have given a buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average price target of $107.75.
Fomento Economico Mexicano SAB (NYSE:FMX) traded up 2.91% on Tuesday, reaching $92.78. 410,372 shares of the company traded hands. Fomento Economico Mexicano SAB has a 1-year low of $83.01 and a 1-year high of $102.72. The stock has a market capitalization of $33.20 billion, a price-to-earnings ratio of 35.55 and a beta of 0.75. The stock has a 50 day moving average of $92.87 and a 200-day moving average of $91.93.
Fomento Economico Mexicano SAB (NYSE:FMX) last released its earnings results on Wednesday, July 27th. The company reported $0.74 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.86 by $0.12. Fomento Economico Mexicano SAB had a return on equity of 8.08% and a net margin of 5.61%. On average, equities analysts anticipate that Fomento Economico Mexicano SAB will post $3.06 EPS for the current year.
Several large investors have recently bought and sold shares of FMX. Investec Asset Management LTD increased its stake in Fomento Economico Mexicano SAB by 3.2% in the first quarter. Investec Asset Management LTD now owns 617,991 shares of the company’s stock valued at $59,519,000 after buying an additional 19,431 shares during the last quarter. AMP Capital Investors Ltd increased its stake in Fomento Economico Mexicano SAB by 40.7% in the first quarter. AMP Capital Investors Ltd now owns 112,325 shares of the company’s stock valued at $10,851,000 after buying an additional 32,500 shares during the last quarter. OLD Mission Capital LLC increased its stake in Fomento Economico Mexicano SAB by 1,013.3% in the first quarter. OLD Mission Capital LLC now owns 58,046 shares of the company’s stock valued at $5,590,000 after buying an additional 52,832 shares during the last quarter. Quantbot Technologies LP purchased a new stake in Fomento Economico Mexicano SAB during the second quarter valued at $231,000. Finally, Deltec Asset Management LLC increased its stake in Fomento Economico Mexicano SAB by 833.3% in the second quarter. Deltec Asset Management LLC now owns 28,000 shares of the company’s stock valued at $2,590,000 after buying an additional 25,000 shares during the last quarter. 20.24% of the stock is owned by institutional investors and hedge funds.
About Fomento Economico Mexicano SAB
Fomento Economico Mexicano, SAB. de C.V. (FEMSA) is a holding company. The Company’s segments are Coca-Cola FEMSA, FEMSA Comercio-Retail Division and FEMSA Comercio-Fuel Division. The Company conducts its operations through holding companies, such as Coca-Cola FEMSA, SAB. de C.V. and subsidiaries (Coca-Cola FEMSA), which produces, distributes and sells beverages; FEMSA Comercio, SA de C.V.
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