We recently published 10 Stocks Struggling to Shine Ahead of Christmas. Ambev SA is one of the worst performers on Monday.
Ambev dropped its share prices by 7.63 percent to close at $2.30 apiece amid the lack of catalysts to boost buying appetite and what appeared to be an early window-dressing.
The practice is common among institutional investors, where they tweak portfolios before the reporting periods, typically quarterly and annually, by loading up on well-performing stocks and trimming those that underperform to present a stronger portfolio to clients.
Ambev SA is a company that owns Brazil’s top brands, including Skol, Brahma, Antarctica, Bohemia, and Quilmes, among others.
In the past few weeks, the company received a downgraded rating of “market perform” from Bernstein, versus “outperform” previously, saying that while it is confident about Ambev SA’s long-term fundamentals, it believed that the current expectations were “overblown.”
Photo by Adam Wilson on Unsplash
Bernstein recommended taking profits on the company’s shares and waiting for a more attractive entry point before loading positions in the company.
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This article is originally published at Insider Monkey.
