Anheuser Busch Inbev (BUD) Cut to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Anheuser Busch Inbev (NYSE:BUD) from a hold rating to a sell rating in a research note published on Wednesday, December 27th.

According to Zacks, “AB InBev’s shares have underperformed the industry year to date, largely due to dismal earnings history. Evidently, the company’s last reported quarter marked its seventh straight earnings miss, while revenues missed estimate for the second consecutive quarter. Higher cost of sales, soft volumes and consumers’ changing preferences have been impacting the company’s performance. Further, management continues to anticipate increased cost of sales, owing to the lingering currency woes and growth of premium brands. Also, volatility in some of the key regions remains a threat. However, AB InBev’s robust brand portfolio and solid geographical reach remain its major strength. Further, we expect the company to benefit from its constant expansion in the craft beer space, given the rising demand for this beer category. Also, it keeps introducing near beer alternatives along with no- and low-alcohol beers, which is encouraging.”

A number of other research firms have also recently commented on BUD. Societe Generale cut shares of Anheuser Busch Inbev from a hold rating to a sell rating in a research note on Monday, November 6th. Susquehanna Bancshares set a $129.00 price objective on shares of Anheuser Busch Inbev and gave the company a hold rating in a research note on Wednesday, October 25th. JPMorgan Chase & Co. reaffirmed an underweight rating on shares of Anheuser Busch Inbev in a research note on Tuesday, December 5th. Argus started coverage on shares of Anheuser Busch Inbev in a research note on Friday, September 8th. They set a buy rating and a $136.00 price objective for the company. Finally, Berenberg Bank reiterated a buy rating on shares of Anheuser Busch Inbev in a report on Wednesday, September 13th. Four research analysts have rated the stock with a sell rating, four have issued a hold rating and five have given a buy rating to the company’s stock. The company presently has an average rating of Hold and an average price target of $126.53.

Anheuser Busch Inbev (BUD) opened at $114.90 on Wednesday. Anheuser Busch Inbev has a fifty-two week low of $103.55 and a fifty-two week high of $126.50. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.82 and a quick ratio of 0.71. The firm has a market cap of $193,530.00, a price-to-earnings ratio of 43.69, a price-to-earnings-growth ratio of 1.45 and a beta of 1.04.

Anheuser Busch Inbev (NYSE:BUD) last released its quarterly earnings data on Thursday, October 26th. The consumer goods maker reported $1.31 earnings per share for the quarter, missing analysts’ consensus estimates of $1.50 by ($0.19). The firm had revenue of $14.74 billion during the quarter, compared to analysts’ expectations of $15 billion. Anheuser Busch Inbev had a net margin of 9.57% and a return on equity of 16.57%. The firm’s quarterly revenue was up 26.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.83 EPS. equities research analysts expect that Anheuser Busch Inbev will post 4.2 EPS for the current fiscal year.

Large investors have recently bought and sold shares of the business. First Eagle Investment Management LLC acquired a new position in shares of Anheuser Busch Inbev in the 3rd quarter worth approximately $72,294,000. Turim 21 Investimentos Ltda. acquired a new position in shares of Anheuser Busch Inbev in the 3rd quarter worth approximately $58,623,000. Renaissance Technologies LLC lifted its holdings in shares of Anheuser Busch Inbev by 225.6% in the 2nd quarter. Renaissance Technologies LLC now owns 595,500 shares of the consumer goods maker’s stock worth $65,719,000 after acquiring an additional 412,600 shares during the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of Anheuser Busch Inbev by 12.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 3,170,017 shares of the consumer goods maker’s stock worth $349,844,000 after acquiring an additional 352,595 shares during the last quarter. Finally, Seatown Holdings Pte. Ltd. acquired a new position in shares of Anheuser Busch Inbev in the 3rd quarter worth approximately $36,436,000. Institutional investors own 5.67% of the company’s stock.

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Anheuser Busch Inbev Company Profile

Anheuser Busch Inbev NV (AB InBev) is a Belgium-based company engaged in the brewers industry. The Company owns a portfolio of over 200 beer brands. The Company’s brand portfolio includes global brands, such as Budweiser, Corona and Stella Artois; international brands, including Beck’s, Leffe and Hoegaarden, and local champions, such as Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, Cass and Jupiler.

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