Anheuser-Busch InBev stock (NYSE: BUD) has seen a decline of more than 7% in the last one month and currently trades at $69 per share. The fall has been driven by concerns of a slowing hard seltzer market. Also, the global trend has been toward smaller craft breweries and away from cheaper light beers.
Why did Anheuser-Busch InBev stock fall 8% in the last one month?
Jul 28, 2021 · Anheuser-Busch InBev stock (NYSE: BUD) has seen a decline of more than 7% in the last one month and currently trades at $69 per share. The fall has been driven by concerns of a slowing hard ...
Why did Anheuser-Busch exit two positions during the quarter?
Sep 16, 2021 · Anheuser-Busch InBev stock (NYSE: BUD) has declined close to 8% in the last one month (ending 14th September 2021) and currently trades at $57 per share. The fall was mainly driven by JP Morgan ...
Should you give Anheuser-Busch stock a second look?
Aug 06, 2021 · Why Anheuser-Busch InBev Stock Partied Today. Motley Fool Returns. Market-beating stocks from our award-winning service. Stock Advisor Returns. 465%. 465% . …
How did Anheuser-Busch become the giant it is today?
Mar 21, 2017 · Anheuser-Busch InBev SA/NV (BUD), alias AB InBev, has recently been in the limelight not only for its massive merger with close rival SABMiller Plc but also due to its string of dismal earnings ...
Is Anheuser-Busch stock a good buy?
AnheuserBusch InBev SANV - Hold Valuation metrics show that AnheuserBusch InBev SANV may be undervalued. Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of BUD, demonstrate its potential to outperform the market. It currently has a Growth Score of B.
What happened to Anheuser-Busch?
In July 2008 Anheuser-Busch agreed to be purchased by InBev for approximately $52 billion. After the takeover was finalized in November, the newly formed Anheuser-Busch InBev became the world's largest brewer. In 2016 the company acquired SABMiller, a beverage company based in London, for more than $100 billion.
Is BUD stock undervalued?
Morningstar has a $90 fair value estimate for BUD, and the stock closed at $66.93 on July 20, earning it a spot among the top undervalued stocks to buy.Jul 22, 2021
Who is InBev owned by?
Ownership. Anheuser-Busch InBev is controlled by Belgian families Vandamme, de Mévius and de Spoelberch, who as of 2015 owned a combined 28.6% of the company, and Brazilian investors Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles, who owned 22.7% through their private investment firm 3G Capital.
Does China own Budweiser?
Budweiser is licensed, produced and distributed in Canada by Labatt Brewing Company (also owned by AB InBev). Of the 15 Anheuser-Busch breweries outside of the United States, 14 of them are positioned in China. Budweiser is the fourth leading brand in the Chinese beer market.
What happened
Shares of beverage giant Anheuser-Busch InBev ( BUD -2.57% ) lost 12.2% of their value in July, according to numbers from S&P Global Market Intelligence. A lackluster second-quarter report is responsible for most of the setback.
So what
The rout actually began in mid-June, with profit-taking in the wake of a strong run-up. In retrospect, though, the selling was warranted. Boston Beer ( SAM 1.19% ) waved red flags for the entire booze industry after missing its second-quarter sales and earnings estimates; the company's hard seltzer business was particularly disappointing.
Now what
It's not a stretch to suggest beverage outfit Anheuser-Busch -- the parent to Budweiser, Michelob, and Stella Artois -- has yet to fully shake off the disruption spurred by COVID-19.
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The COVID-19 epidemic represents a new threat to the beer maker
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What happened
Shares of Anheuser-Busch InBev ( NYSE:BUD) fell more than 10% on Monday, as investors grew increasingly concerned with the beer titan's earnings prospects.
So what
Anheuser-Busch InBev is getting hit from multiple angles. Its core beer business, already weakened from surging demand for its competitors' hard seltzer drinks, is now facing an even more menacing threat: COVID-19.
Now what
The beer giant has already lost more than $170 million in profits so far this year from the COVID-19 outbreak. And with many major sporting events, including the Olympics, likely to be delayed or canceled, more pain probably lies ahead for investors.
NYSE: BUD
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This "king of beers" is a decade loser, but that could be about to change
Investing is tricky sometimes; you can do the right things like being patient, doing your homework, and still end up with a loser stock.
Beer is a wonderful business model
Anheuser-Busch is the 800-pound gorilla in the beer industry. Its more than 500 brands include Budweiser, Bud Light, Corona, and Stella Artois and are sold worldwide. The company has an estimated 38% share of the global beer market, making it the largest brewer in the industry.
NYSE: BUD
It has the large operations to make beer at competitive prices, and it can demand premium shelf space at stores and venues. The company's gross profit margin ranges anywhere from 50% to 60% -- almost as good as some tech stocks.
Acknowledging the challenges
The company has made massive acquisitions to become the giant it is today. Anheuser-Busch merged with InBev in 2008, a $52 billion cash deal that created Anheuser-Busch InBev. It then made an even more significant merger in 2016, combining with SABMiller in a $107 billion cash deal.
Encouraging signs of a recovery
Anheuser-Busch saw its business begin to rebound during the second half of 2020. Volumes were up year over year by 1.8%. That momentum has continued through 2021 with beer volumes up 17% in the first two quarters -- recovering from that weak first half of 2020 -- and Q3 volume was up year over year by 3.4%.
Investor takeaway
In other words, with the business rebounding from lockdowns and the balance sheet slowly improving, the outlook is finally beginning to look brighter for investors. The stock trades at a forward price-to-earnings ratio of 20, which doesn't seem cheap but is still below its historical average of 23.
When will the Bud Light Seltzer come back?
With a vaccine looking very likely to be introduced by the end of the year, bars, nightclubs, concerts and live spectator sports are likely to come roaring back within five or six months due to pent-up demand. Many million cans and bottles of Bud beer and Bud Light seltzer will be consumed at those events.
How much is seltzer sales in 2019?
Sales of seltzer with alcohol came in at $1.5 billion in 2019, and they are growing quickly. Young, wealthy people of both genders are buying it, CNN quoted a Nielsen executive as saying.
