América Móvil (NYSE:AMX) Rating Lowered to Strong Sell at Zacks Investment Research

Zacks Investment Research lowered shares of América Móvil (NYSE:AMX) from a hold rating to a strong sell rating in a report released on Wednesday morning, Zacks.com reports. Zacks Investment Research currently has $17.00 target price on the Wireless communications provider’s stock.

According to Zacks, “America Movil follows an aggressive promotional strategy to increase penetration in the smartphone market. The company struggles to increase its smartphone sales through promotional discounts and subsidized offers. As a result, these efforts tend to lower margins, affecting the overall profitability of the company in the near term. The strict switching policy has also led to massive customer churn in Central America, while Peru and Ecuador remain near-term concerns for America Movil. U.S. telecom behemoth AT&T’s entry into the Mexican telecom industry with the acquisition of Grupo Iusacell and Nextel de Mexico for about $4.4 billion is a major setback. Increased network investments and high debt load are other concerns. However, growing subscriber base, focused 5G efforts and the deployment of state-of-the-art technologies are tailwinds.”

Other equities analysts have also recently issued research reports about the stock. Itau BBA Securities cut shares of América Móvil from an outperform rating to a market perform rating and set a $19.00 target price for the company. in a research report on Wednesday, October 6th. Barclays lifted their target price on shares of América Móvil from $19.00 to $21.00 and gave the stock an overweight rating in a research report on Thursday, October 14th. Finally, Itaú Unibanco cut shares of América Móvil to a hold rating and set a $19.00 target price for the company. in a research report on Wednesday, October 6th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and one has assigned a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of Hold and a consensus price target of $19.00.

Shares of NYSE AMX opened at $20.41 on Wednesday. The company has a quick ratio of 0.62, a current ratio of 0.69 and a debt-to-equity ratio of 1.36. América Móvil has a 52 week low of $12.69 and a 52 week high of $21.37. The firm has a 50-day moving average price of $19.26 and a 200 day moving average price of $17.98. The stock has a market capitalization of $66.79 billion, a price-to-earnings ratio of 14.08, a price-to-earnings-growth ratio of 0.58 and a beta of 0.87.

América Móvil (NYSE:AMX) last announced its quarterly earnings data on Tuesday, October 19th. The Wireless communications provider reported $0.24 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.32 by ($0.08). América Móvil had a net margin of 9.69% and a return on equity of 31.10%. The company had revenue of $12.66 billion during the quarter, compared to analyst estimates of $12.37 billion. Equities research analysts expect that América Móvil will post 1.27 EPS for the current fiscal year.

The company also recently declared a semi-annual dividend, which was paid on Monday, November 15th. Stockholders of record on Friday, November 5th were issued a dividend of $0.1974 per share. The ex-dividend date of this dividend was Thursday, November 4th. This represents a dividend yield of 2%. América Móvil’s dividend payout ratio (DPR) is presently 26.90%.

Several hedge funds and other institutional investors have recently modified their holdings of AMX. Capital International Investors grew its holdings in shares of América Móvil by 15.1% during the second quarter. Capital International Investors now owns 63,954,209 shares of the Wireless communications provider’s stock worth $959,596,000 after buying an additional 8,399,065 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of América Móvil by 215.4% during the third quarter. Goldman Sachs Group Inc. now owns 5,419,176 shares of the Wireless communications provider’s stock worth $95,756,000 after buying an additional 3,701,053 shares in the last quarter. Teacher Retirement System of Texas purchased a new stake in shares of América Móvil during the third quarter worth about $36,277,000. Bank of Montreal Can grew its holdings in shares of América Móvil by 4,288.2% during the second quarter. Bank of Montreal Can now owns 1,145,891 shares of the Wireless communications provider’s stock worth $17,578,000 after buying an additional 1,119,778 shares in the last quarter. Finally, Amundi purchased a new stake in shares of América Móvil during the second quarter worth about $9,868,000. Institutional investors and hedge funds own 6.02% of the company’s stock.

América Móvil Company Profile

America Movil SAB de CV engages in the provision of telecommunications services. It offers wireless voice, wireless data and value added services, fixed voice, fixed broadband, fixed data, pay television, and information technology services. The company was founded on September 25, 2000 and is headquartered in Mexico City, Mexico.

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