Fomento Economico Mexicano SAB (FMX) Lowered 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 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.”
FMX has been the topic of several other research reports. HSBC raised Fomento Economico Mexicano SAB from a hold rating to a buy rating in a research note on Wednesday, August 10th. Barclays PLC reissued a buy rating and issued a $110.00 price objective on shares of Fomento Economico Mexicano SAB in a research note on Tuesday, July 19th. One equities research analyst has rated the stock with a sell rating and four have issued a buy rating to the stock. The stock currently has a consensus rating of Buy and an average target price of $107.75.
Fomento Economico Mexicano SAB (NYSE:FMX) traded up 0.57% during mid-day trading on Thursday, hitting $96.54. The company had a trading volume of 423,220 shares. Fomento Economico Mexicano SAB has a one year low of $83.01 and a one year high of $102.72. The company has a market cap of $34.54 billion, a PE ratio of 35.89 and a beta of 0.74. The company’s 50 day moving average price is $91.89 and its 200-day moving average price is $92.07.
Fomento Economico Mexicano SAB (NYSE:FMX) last announced its earnings results on Wednesday, July 27th. The company reported $0.74 earnings per share for the quarter, missing the consensus estimate of $0.86 by $0.12. Fomento Economico Mexicano SAB had a net margin of 5.61% and a return on equity of 8.08%. Equities research analysts anticipate that Fomento Economico Mexicano SAB will post $3.05 EPS for the current fiscal year.
The business also recently announced 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 is Friday, October 28th. Fomento Economico Mexicano SAB’s payout ratio is 50.19%.
Institutional investors have recently modified their holdings of the company. Seven Eight Capital LLC boosted its position in shares of 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 worth $202,000 after buying an additional 1,200 shares during the last quarter. Rhumbline Advisers increased its position in shares of Fomento Economico Mexicano SAB by 0.6% in the second quarter. Rhumbline Advisers now owns 2,332 shares of the company’s stock worth $216,000 after buying an additional 13 shares in the last quarter. Daiwa Securities Group Inc. increased its position in shares of 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 worth $217,000 after buying an additional 300 shares in the last quarter. Quantbot Technologies LP acquired a new position in shares of Fomento Economico Mexicano SAB during the second quarter worth $231,000. Finally, BTC Capital Management Inc. increased its position in shares of 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 worth $246,000 after buying an additional 239 shares in the last quarter. Institutional investors and hedge funds 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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