5 Best Quality Penny Stocks to Buy

3. Ambev S.A. (NYSE:ABEV)

Number of Hedge Fund Holders: 14

Shares of Brazilian brewing company Ambev S.A. (NYSE:ABEV) have gained about 21% year to date. Ambev S.A. (NYSE:ABEV) was recently upgraded by BofA to Buy from Neutral. BofA also upped its price target to 17.50 reais from 16.40 reais as the firm believes the current valuation is the stock is discounted.

Insider Monkey’s database of 943 hedge funds shows that 14 hedge funds held stakes in Ambev S.A. (NYSE:ABEV) as of the end of the first quarter. The most notable hedge fund stakeholder of Ambev S.A. (NYSE:ABEV) was First Eagle Investment Management of Jean-Marie Eveillard which owns an $877 million stake in the company.

Ariel Global Fund made the following comment about Ambev S.A. (NYSE:ABEV) in its Q1 2023 investor letter:

“Also during the quarter, we initiated a new position in Brazil-based brewing company, Ambev S.A. (NYSE:ABEV) in the quarter. The company produces, distributes and sells beer, carbonated soft drinks and other non-alcoholic and non-carbonated beverages across the Americas. Ambev appointed a new executive leadership team in 2020 focused on transforming the company’s culture and operations. Following several consecutive years of margin contraction, we expect 2023 to be a turning point and believe Ambev’s commercial strategy will help improve the sales mix resulting in market share, revenue and earnings growth. In addition, we like the net cash balance sheet and high free cashflow generation of the business.”