Fomento Economico Mexicano (NYSE:FMX) Sets New 12-Month High on Strong Earnings

Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX) shares hit a new 52-week high during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $141.47 and last traded at $132.1070, with a volume of 37022 shares traded. The stock had previously closed at $132.15.

The company reported $0.93 EPS for the quarter, beating analysts’ consensus estimates of $0.92 by $0.01. Fomento Economico Mexicano had a return on equity of 7.33% and a net margin of 3.40%.The business had revenue of $13.20 billion during the quarter, compared to analyst estimates of $12.94 billion.

Fomento Economico Mexicano Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, July 27th. Stockholders of record on Wednesday, July 15th were issued a $1.827 dividend. This represents a $7.31 dividend on an annualized basis and a dividend yield of 5.4%. The ex-dividend date of this dividend was Wednesday, July 15th. This is a boost from Fomento Economico Mexicano’s previous quarterly dividend of $0.67. Fomento Economico Mexicano’s payout ratio is currently 54.36%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on FMX. Wall Street Zen downgraded Fomento Economico Mexicano from a “buy” rating to a “hold” rating in a report on Saturday, July 18th. Barclays lifted their price target on shares of Fomento Economico Mexicano from $125.00 to $130.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 14th. Weiss Ratings upgraded Fomento Economico Mexicano from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, May 11th. Zacks Research upgraded shares of Fomento Economico Mexicano from a “hold” rating to a “strong-buy” rating in a report on Thursday, April 30th. Finally, UBS Group raised their price target on Fomento Economico Mexicano from $122.00 to $139.00 and gave the stock a “buy” rating in a research report on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Fomento Economico Mexicano presently has a consensus rating of “Moderate Buy” and an average price target of $119.50.

Hedge Funds Weigh In On Fomento Economico Mexicano

Institutional investors have recently added to or reduced their stakes in the company. Fundamenta Capital S.A. acquired a new position in shares of Fomento Economico Mexicano during the 4th quarter worth about $13,527,000. Northcape Capital Pty Ltd lifted its holdings in Fomento Economico Mexicano by 15.1% during the 4th quarter. Northcape Capital Pty Ltd now owns 448,439 shares of the company’s stock worth $46,279,000 after purchasing an additional 58,920 shares during the last quarter. INCA Investments LLC lifted its holdings in shares of Fomento Economico Mexicano by 6.9% during the fourth quarter. INCA Investments LLC now owns 395,261 shares of the company’s stock worth $39,949,000 after buying an additional 25,536 shares in the last quarter. Perpetual Ltd boosted its holdings in Fomento Economico Mexicano by 100.2% in the 4th quarter. Perpetual Ltd now owns 85,067 shares of the company’s stock valued at $8,598,000 after purchasing an additional 42,580 shares during the period. Finally, Assetmark Inc. boosted its stake in shares of Fomento Economico Mexicano by 61.3% in the fourth quarter. Assetmark Inc. now owns 25,592 shares of the company’s stock valued at $2,587,000 after buying an additional 9,730 shares during the period. 61.00% of the stock is currently owned by institutional investors and hedge funds.

Fomento Economico Mexicano Trading Up 1.6%

The stock has a market capitalization of $46.37 billion, a P/E ratio of 30.02, a P/E/G ratio of 0.69 and a beta of 0.41. The company has a current ratio of 1.16, a quick ratio of 0.87 and a debt-to-equity ratio of 0.47. The business has a 50-day moving average price of $126.01 and a two-hundred day moving average price of $116.42.

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.