Fomento Economico Mexicano (NYSE:FMX) Reaches New 1-Year High – Time to Buy?

Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX) shares reached a new 52-week high on Wednesday . The company traded as high as $124.87 and last traded at $124.7430, with a volume of 335317 shares trading hands. The stock had previously closed at $123.12.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. The Goldman Sachs Group raised their price objective on shares of Fomento Economico Mexicano from $113.00 to $128.00 and gave the stock a “buy” rating in a report on Wednesday, February 11th. JPMorgan Chase & Co. raised their price objective on shares of Fomento Economico Mexicano from $98.00 to $117.00 and gave the stock a “neutral” rating in a report on Monday, April 20th. UBS Group raised their price objective on shares of Fomento Economico Mexicano from $109.00 to $122.00 and gave the stock a “buy” rating in a report on Friday, March 20th. Zacks Research raised shares of Fomento Economico Mexicano from a “hold” rating to a “strong-buy” rating in a report on Thursday, April 30th. Finally, Barclays raised their price objective on shares of Fomento Economico Mexicano from $118.00 to $125.00 and gave the stock an “equal weight” rating in a report on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, Fomento Economico Mexicano has an average rating of “Moderate Buy” and a consensus target price of $114.33.

Fomento Economico Mexicano Stock Performance

The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.87 and a current ratio of 1.16. The stock’s fifty day moving average is $112.74 and its two-hundred day moving average is $105.95. The firm has a market cap of $43.10 billion, a price-to-earnings ratio of 27.91, a PEG ratio of 0.84 and a beta of 0.42.

Fomento Economico Mexicano (NYSE:FMX) last issued its quarterly earnings results on Tuesday, March 31st. The company reported $2.43 earnings per share for the quarter. The company had revenue of $11.61 billion during the quarter. Fomento Economico Mexicano had a net margin of 3.40% and a return on equity of 7.33%. On average, analysts expect that Fomento Economico Mexicano S.A.B. de C.V. will post 4.87 earnings per share for the current fiscal year.

Fomento Economico Mexicano Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, May 4th. Stockholders of record on Wednesday, April 22nd were issued a dividend of $0.6658 per share. The ex-dividend date was Wednesday, April 22nd. This represents a $2.66 dividend on an annualized basis and a dividend yield of 2.1%. Fomento Economico Mexicano’s payout ratio is currently 53.47%.

Insider Activity

In related news, Director Garza Alfonso Garza sold 52,311 shares of the firm’s stock in a transaction that occurred on Friday, March 27th. The shares were sold at an average price of $11.19, for a total transaction of $585,360.09. Following the completion of the sale, the director directly owned 1,128,453 shares in the company, valued at approximately $12,627,389.07. This trade represents a 4.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders have sold a total of 261,575 shares of company stock worth $2,795,188 in the last quarter. 5.68% of the stock is owned by insiders.

Institutional Investors Weigh In On Fomento Economico Mexicano

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. V Square Quantitative Management LLC acquired a new position in Fomento Economico Mexicano in the first quarter worth approximately $28,000. Northwestern Mutual Wealth Management Co. boosted its holdings in Fomento Economico Mexicano by 2,006.3% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 337 shares of the company’s stock worth $35,000 after purchasing an additional 321 shares in the last quarter. Tower Research Capital LLC TRC boosted its holdings in Fomento Economico Mexicano by 42.5% in the second quarter. Tower Research Capital LLC TRC now owns 439 shares of the company’s stock worth $45,000 after purchasing an additional 131 shares in the last quarter. Atlas Capital Advisors Inc. acquired a new position in Fomento Economico Mexicano during the fourth quarter worth $50,000. Finally, Brown Brothers Harriman & Co. increased its position in Fomento Economico Mexicano by 220.8% during the third quarter. Brown Brothers Harriman & Co. now owns 725 shares of the company’s stock worth $72,000 after buying an additional 499 shares during the last quarter. Hedge funds and other institutional investors own 61.00% of the company’s stock.

Fomento Economico Mexicano Company Profile

Fomento Económico Mexicano, SAB. de C.V. (FEMSA) is a Mexican multinational company active primarily in the retail and beverage sectors. Headquartered in Monterrey, Mexico, FEMSA’s operations span convenience store retailing, beverage bottling and distribution, and related logistics and consumer services. The company’s business model combines high-frequency retail outlets with large-scale beverage production and a regional supply chain network.

FEMSA Comercio, the company’s retail arm, operates a large chain of convenience stores under the OXXO brand and has expanded its retail footprint with complementary formats and services.