Updated Aug 6 at 1:52pm ET.
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A holding company representing some of the firm's shareholders is selling about 10 million shares. While a large sale can sometimes suggest insiders are less confident, this is a relatively small slice of the total company. For a business of this size, this kind of move by a major shareholder is usually more about their own financial planning than a change in how the business is doing.
Source: Reuters
Wells Fargo raised its price target from $93 to $97 while keeping an overweight rating, which means they expect the stock to do better than the average market. This change follows a strong earnings report where the company showed it could grow sales and profits. The new target suggests the stock has room to rise about 15 percent from its current price.
Source: Wells Fargo
The company earned $1.21 per share, which was better than the $1.09 analysts expected. Total revenue reached nearly 32 billion dollars for the first half of the year, helped by a 5.6 percent rise in the second quarter. The FIFA World Cup and other events helped sell more beer, particularly for brands like Michelob Ultra and Corona, which saw 17 percent growth outside its home market.
This result shows the company is successfully shifting toward more expensive, premium brands that bring in more profit per bottle. Management also confirmed its outlook for the full year, suggesting they are confident they can keep this momentum going even as they work to pay down debt and improve their digital sales platform.
Barclays downgraded the stock to an equal weight rating, which is their way of saying they expect it to perform about the same as the rest of the market. This move suggests they see fewer reasons for the stock to rise quickly in the near term compared to other options. While the company has strong brands, this rating change reflects a more cautious view on how much more the stock price can grow from here.
Analysts recently adjusted their outlooks following the company's latest earnings report. Most analysts, 26 of 45, rate the stock a buy, and the average target price of $94 suggests a 12% gain from today's price.
The company has a perfect record of beating analyst profit targets over the last two years. Management consistently clears the bar they set, showing they have a firm handle on their global costs.
