Zacks Investment Research Lowers Fomento Economico Mexicano SAB (FMX) to Sell
Fomento Economico Mexicano SAB (NYSE:FMX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released 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.”
Other analysts also recently issued research reports about the stock. HSBC upgraded shares of Fomento Economico Mexicano SAB from a “hold” rating to a “buy” rating in a research report on Wednesday, August 10th. Barclays PLC restated a “buy” rating and set a $110.00 price objective on shares of Fomento Economico Mexicano SAB in a research report on Tuesday, July 19th. One investment analyst has rated the stock with a sell rating and four have issued a buy rating to the company. The company presently 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 0.86% during mid-day trading on Thursday, reaching $95.43. 392,055 shares of the company traded hands. The stock’s 50 day moving average price is $91.91 and its 200 day moving average price is $92.05. Fomento Economico Mexicano SAB has a 52 week low of $83.01 and a 52 week high of $102.72. The firm has a market capitalization of $34.15 billion, a price-to-earnings ratio of 35.48 and a beta of 0.74.
Fomento Economico Mexicano SAB (NYSE:FMX) last posted its quarterly earnings results on Wednesday, July 27th. The company reported $0.74 EPS for the quarter, missing the 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%. Equities analysts forecast that Fomento Economico Mexicano SAB will post $3.05 EPS for the current year.
The firm also recently declared a dividend, which will be paid on Monday, November 14th. Investors of record on Tuesday, November 1st will be given 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 50.19%.
A number of hedge funds have recently added to or reduced their stakes in the stock. 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. Rhumbline Advisers increased its stake in Fomento Economico Mexicano SAB by 0.6% in the second quarter. Rhumbline Advisers now owns 2,332 shares of the company’s stock valued at $216,000 after buying an additional 13 shares during the period. Daiwa Securities Group Inc. increased its stake in Fomento Economico Mexicano SAB by 14.6% in the second quarter. Daiwa Securities Group Inc. now owns 2,350 shares of the company’s stock valued at $217,000 after buying an additional 300 shares during the period. Quantbot Technologies LP acquired a new stake in Fomento Economico Mexicano SAB during the second quarter valued at approximately $231,000. Finally, BTC Capital Management Inc. increased its stake in Fomento Economico Mexicano SAB by 9.9% in the second quarter. BTC Capital Management Inc. now owns 2,661 shares of the company’s stock valued at $246,000 after buying an additional 239 shares during the period. Hedge funds and other institutional investors own 20.24% of the company’s stock.
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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