Fomento Economico Mexicano SAB (FMX) Downgraded to Sell at Zacks Investment Research
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.”
Several other research firms have also recently commented on FMX. HSBC upgraded 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 issued a $110.00 target price on shares of Fomento Economico Mexicano SAB in a research report on Tuesday, July 19th. One analyst has rated the stock with a sell rating and four have given a buy rating to the stock. The company currently has a consensus rating of Buy and an average price target of $107.75.
Shares of Fomento Economico Mexicano SAB (NYSE:FMX) traded down 0.93% on Tuesday, reaching $91.72. The company had a trading volume of 85,160 shares. The stock has a 50 day moving average price of $92.90 and a 200-day moving average price of $91.93. Fomento Economico Mexicano SAB has a 12 month low of $83.01 and a 12 month high of $102.72. The company has a market capitalization of $32.82 billion, a price-to-earnings ratio of 35.14 and a beta of 0.75.
Fomento Economico Mexicano SAB (NYSE:FMX) last announced its quarterly earnings results on Wednesday, July 27th. The company reported $0.74 earnings per share (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%. Analysts forecast that Fomento Economico Mexicano SAB will post $3.06 EPS for the current fiscal year.
Several institutional investors have recently modified their holdings of the stock. Macquarie Group Ltd. boosted its position in shares of Fomento Economico Mexicano SAB by 5.2% in the second quarter. Macquarie Group Ltd. now owns 499,317 shares of the company’s stock valued at $46,185,000 after buying an additional 24,500 shares during the period. Northwestern Mutual Investment Management Company LLC purchased a new position in shares of Fomento Economico Mexicano SAB during the second quarter valued at about $5,272,000. Stifel Financial Corp boosted its position in shares of Fomento Economico Mexicano SAB by 11.6% in the second quarter. Stifel Financial Corp now owns 3,023 shares of the company’s stock valued at $280,000 after buying an additional 315 shares during the period. Virtu Financial LLC boosted its position in shares of Fomento Economico Mexicano SAB by 170.5% in the second quarter. Virtu Financial LLC now owns 33,924 shares of the company’s stock worth $3,138,000 after buying an additional 21,381 shares during the last quarter. Finally, Legal & General Group Plc boosted its position in shares of Fomento Economico Mexicano SAB by 2.1% in the second quarter. Legal & General Group Plc now owns 72,684 shares of the company’s stock worth $6,725,000 after buying an additional 1,520 shares during the last quarter. Institutional investors own 20.24% of the company’s stock.
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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