The stock of Ambev S.A. (NYSE:ABEV) is now priced at $2.25 and the shares are -0.13 points down or -5.46% lower compared to its previous closing price of $2.38. The stock had 20.218 million contracts set over the past session. ABEV shares’ daily volume is compared to its average trading volume at 33.702 million shares. However, it has a float of 4390 million and although its performance was -3.43% over the week, it’s one to watch. Analysts have given the ABEV stock a yearly average price target of $2.98 per share. It means the stock’s upside potential is 32.44% with the ABEV share price recently placing at $2.25 to $2.34. However, some brokerage firms have priced the stock below the average, including one that has called $2.5.
The shorts are running away from the Ambev S.A. stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the ABEV shares have declined. Short interest in the stock represents just 0.58% of its float, but the volume has dropped by 0.
In the last trading session, Ambev S.A. (NYSE:ABEV) dropped by -$0.08 over the week and lost -$0.33 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $4.81. The stock recorded its established 52-week high on 10/24/19.
Since 05/13/20, the stock has traded to a low of $1.9 at 18.42%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge.
Looking at current readings, Ambev S.A.’s two-week RSI is 34.11. This suggests that the stock is neutral at the moment and that ABEV shares’ price movement remains stable. The stochastic readings are equally revealing at 23.5% meaning the ABEV share price is currently in overbought territory.
The technical chart shows that the ABEV stock will likely settle at between $2.31 and $2.37 per share. However, if the stock dips below $2.22, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $2.19.
Currently, the stock is trading in the red of MACD, with a reading of -0.01. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at JP Morgan raised their recommendation for ABEV from Underweight to Neutral in July 31 review. JP Morgan analysts downgraded their recommendation of the stock from Neutral to Underweight in a flash note released to investors on March 24. HSBC Securities seeing the stock struggling downgraded it from Hold to Reduce on February 25.
The average rating for the ABEV equity is 3.14 and is currently gathering a bearish momentum. Of 7 analysts tracking Ambev S.A. polled by Reuters, 1 rated ABEV as a hold. The remaining 6 analysts were split evenly. However, the split wasn’t equal as a majority (3) rated it as a buy or strong buy. 3 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the ABEV stock price is 17.31X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 22.3 below the group’s average of 50.6. Ambev S.A. has its P/E ratio at 2.7, which means that the stock is currently trading at a premium relative to the 1.8 industry average.