Fomento Economico Mexicano (NYSE:FMX) Sets New 52-Week High – What’s Next?

Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX)’s share price hit a new 52-week high on Thursday . The stock traded as high as $126.02 and last traded at $126.1060, with a volume of 174700 shares traded. The stock had previously closed at $123.65.

Analysts Set New Price Targets

FMX has been the subject of several analyst reports. The Goldman Sachs Group increased their price objective on Fomento Economico Mexicano from $113.00 to $128.00 and gave the stock a “buy” rating in a research report on Wednesday, February 11th. Wall Street Zen cut Fomento Economico Mexicano from a “strong-buy” rating to a “buy” rating in a research note on Monday, May 11th. Barclays upped their price target on Fomento Economico Mexicano from $118.00 to $125.00 and gave the stock an “equal weight” rating in a research note on Monday, May 4th. UBS Group upped their price target on Fomento Economico Mexicano from $122.00 to $139.00 and gave the stock a “buy” rating in a research note on Thursday, May 28th. Finally, Weiss Ratings upgraded Fomento Economico Mexicano from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $117.17.

Fomento Economico Mexicano Stock Up 2.8%

The company has a debt-to-equity ratio of 0.47, a current ratio of 1.16 and a quick ratio of 0.87. The business has a 50 day simple moving average of $118.66 and a 200 day simple moving average of $109.94. The company has a market capitalization of $43.91 billion, a price-to-earnings ratio of 28.39, a PEG ratio of 0.71 and a beta of 0.42.

Fomento Economico Mexicano (NYSE:FMX) last released its quarterly earnings results on Tuesday, March 31st. The company reported $2.43 EPS for the quarter. The company had revenue of $11.61 billion for the quarter. Fomento Economico Mexicano had a return on equity of 7.33% and a net margin of 3.40%. As a group, equities analysts predict that Fomento Economico Mexicano S.A.B. de C.V. will post 5.77 earnings per share for the current fiscal year.

Fomento Economico Mexicano Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, May 4th. Stockholders of record on Wednesday, April 22nd were paid a $0.6658 dividend. This represents a $2.66 annualized dividend and a dividend yield of 2.1%. The ex-dividend date was Wednesday, April 22nd. Fomento Economico Mexicano’s dividend payout ratio (DPR) is presently 53.47%.

Insider Activity

In other news, Director Garza Alfonso Garza sold 52,311 shares of the stock in a transaction on Friday, March 27th. The stock was sold at an average price of $11.19, for a total value of $585,360.09. Following 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders sold 261,575 shares of company stock valued at $2,795,188 in the last 90 days. 5.68% of the stock is currently owned by company insiders.

Institutional Trading of Fomento Economico Mexicano

Several hedge funds have recently modified their holdings of FMX. AQR Capital Management LLC raised its stake in shares of Fomento Economico Mexicano by 11,692.3% in the second quarter. AQR Capital Management LLC now owns 716,029 shares of the company’s stock valued at $73,171,000 after acquiring an additional 709,957 shares in the last quarter. Victory Capital Management Inc. raised its stake in shares of Fomento Economico Mexicano by 12,960.1% in the third quarter. Victory Capital Management Inc. now owns 599,982 shares of the company’s stock valued at $59,176,000 after acquiring an additional 595,388 shares in the last quarter. CIBC Bancorp USA Inc. acquired a new stake in shares of Fomento Economico Mexicano in the third quarter valued at $50,343,000. Invesco Ltd. raised its stake in shares of Fomento Economico Mexicano by 67.8% in the third quarter. Invesco Ltd. now owns 1,046,906 shares of the company’s stock valued at $103,256,000 after acquiring an additional 423,073 shares in the last quarter. Finally, Itau Unibanco Holding S.A. purchased a new position in Fomento Economico Mexicano in the fourth quarter valued at $41,408,000. 61.00% of the stock is currently owned by institutional investors and hedge funds.

About Fomento Economico Mexicano

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.