Ruffer LLP Takes a Bold Step by Lessening its Holdings in Ambev S.A.
In an unexpected move, Ruffer LLP announced that it had lessened its holdings in Ambev S.A. (NYSE:ABEV) by 8.3% during the 4th quarter, according to the company’s most recent filing with the Securities and Exchange Commission. The sale of 3,856,923 shares during the quarter brought Ruffer LLP’s total shares of Ambev to 42,843,210 shares. This sudden change has raised eyebrows among investors as Ambev has historically been a hot commodity in investment portfolios for several years.
According to Ruffer LLP’s latest report, Ambev comprises approximately 7.9% of the firm’s investment portfolio and had previously been one of its largest holdings. However, after the recent sale of shares, it is no longer at the top with its market value significantly lower than before. At the end of last quarter, Ruffer LLP owned only 0.27% of Ambev with a worth of $117,108,000 – an alarming decrease from what they had owned previously.
The move comes amidst significant rumors surrounding Ambev and its future financial stability; however, despite these rumors and reports on their previous quarterly earnings results in March this year – where they reported $0.06 earnings per share for the quarter – comprising a net margin of 18%, which beat consensus estimates by $0.02 per share – investors remain cautious about investing heavily into international companies like Ambev.
With extraordinary unease increasing within international markets amid crises like COVID-19 amongst others undisclosed concerns that may have pushed Ruffer LLP to downsize their stakes further, all eyes are now keenly focused on how this decision will impact both parties involved moving forward.
As we look towards May 20th next year and beyond into future quarters, the impact of this decision will become clearer. For now, it remains a hot topic on Wall Street and amongst all international investing circles.
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Institutional Investors and Hedge Funds Increase Stakes in Ambev S.A. Amid Favorable Financials and Diverse Market Reach
Institutional investors and hedge funds seem to be taking a keen interest in Ambev S.A., one of the world’s leading breweries. Recent reports show that First Eagle Investment Management LLC purchased an additional 3,443,840 shares of the company during Q4 of 2022, growing its stake in Ambev by 1.2%. The investment group now holds an impressive 285,755,616 shares worth $777,255,000.
BlackRock Inc., another major institutional investor has also increased their position in Ambev, increasing their holdings by 39.1% in Q3 of 2022. They now hold approximately 48,691,824 shares worth $137,798,000.
Goldman Sachs Group Inc. acquired an additional 30,623,051 shares during the second quarter of last year following a surge in the popularity of Ambev stock. Their current holdings are valued at approximately $108,297,000.
National Bank of Canada FI has also shown a significantly increased interest in Ambev over recent months. The bank grew its position by a staggering 1,244.4%, investing heavily in the company during Q4 of last year via the purchase of an additional 27,753,000 shares worth $81,554,000.
Itau Unibanco Holding S.A., one of Brazil’s largest banking institutions is another major player who has increased its holdings in Ambev recently. The financial giant now holds approximately 24 million shares valued at around $66 million after a significant increase in stakes during Q4 of last year.
At present, institutional investors and hedge funds own around 8.75% of the company’s total share volume indicating a strong market following for this particular stock.
The buzz surrounding Ambev is likely due to its currently favorable financials and robust business model targeting diverse markets across several continents through high-efficient brewing facilities and a comprehensive distribution network. The company’s current market capitalization is $45.83 billion, with a P/E ratio of 16.11 and a PEG ratio of 2.50.
As of May 20, 2023, Ambev stock traded at $2.91 per share on the NYSE with an average trading volume of approximately 21,733,061 shares per day. The stock’s fifty-day and two-hundred-day moving averages were recorded as $2.81 per share and $2.77 per share, respectively.
Overall, institutional investors and hedge funds appear to be betting heavily on Ambev’s growth trajectory given the current positive momentum in its financials and operations across markets worldwide. Nonetheless, we are keeping an eye out for any news that might throw the tide in either direction soon; all eyes are on Ambev’s performance both in Brazil and globally in what promises to be another exciting year for the global brewing industry sector.
