Fomento Economico Mexicano SAB (FMX) Downgraded by Zacks Investment Research
Fomento Economico Mexicano SAB (NYSE:FMX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Thursday.
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 rising lately ahead of third-quarter earnings of the company that has mixed record of earnings surprises in recent quarters. Also, FEMSA's focus on achieving growth via acquisitions bodes well.”
Several other analysts have also issued reports on FMX. Barclays PLC reiterated a “buy” rating and issued a $110.00 target price 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 investment analyst has rated the stock with a sell rating and four have issued a buy rating to the stock. Fomento Economico Mexicano SAB currently has a consensus rating of “Buy” and an average target price of $107.75.
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Fomento Economico Mexicano SAB (NYSE:FMX) traded down 1.22% during trading on Thursday, reaching $95.09. 302,148 shares of the company’s stock traded hands. The stock has a market cap of $34.03 billion, a price-to-earnings ratio of 35.35 and a beta of 0.74. Fomento Economico Mexicano SAB has a 52-week low of $83.01 and a 52-week high of $102.72. The company’s 50 day moving average is $91.91 and its 200-day moving average is $92.05.
Fomento Economico Mexicano SAB (NYSE:FMX) last posted its earnings results on Wednesday, July 27th. The company reported $0.74 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ 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, analysts anticipate that Fomento Economico Mexicano SAB will post $3.05 earnings per share for the current fiscal year.
The business also recently declared a dividend, which will be paid on Monday, November 14th. Investors of record on Tuesday, November 1st will be issued a $0.684 dividend. The ex-dividend date of this dividend is Friday, October 28th. Fomento Economico Mexicano SAB’s dividend payout ratio (DPR) is currently 50.19%.
Institutional investors have recently modified their holdings of the company. Harding Loevner LP increased its position in shares of Fomento Economico Mexicano SAB by 8.7% in the second quarter. Harding Loevner LP now owns 668,267 shares of the company’s stock worth $61,808,000 after buying an additional 53,400 shares during the period. Hexavest Inc. increased its stake in Fomento Economico Mexicano SAB by 3.2% in the second quarter. Hexavest Inc. now owns 11,319 shares of the company’s stock valued at $1,047,000 after buying an additional 353 shares during the period. Windward Capital Management Co. CA increased its stake in Fomento Economico Mexicano SAB by 0.9% in the second quarter. Windward Capital Management Co. CA now owns 33,223 shares of the company’s stock valued at $3,073,000 after buying an additional 296 shares during the period. BNP Paribas Arbitrage SA increased its stake in Fomento Economico Mexicano SAB by 8.3% in the second quarter. BNP Paribas Arbitrage SA now owns 24,439 shares of the company’s stock valued at $2,260,000 after buying an additional 1,863 shares during the period. Finally, Seven Eight Capital LLC increased its stake in Fomento Economico Mexicano SAB by 133.3% in the first quarter. Seven Eight Capital LLC now owns 2,100 shares of the company’s stock valued at $202,000 after buying an additional 1,200 shares during the period. 20.24% of the stock is currently owned by institutional investors.
Fomento Economico Mexicano SAB Company Profile
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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