Anheuser Busch Inbev SA (ADR)’s Big Gap Up Today Points to Less Stock Risks

The stock of Anheuser Busch Inbev SA (ADR) (NYSE:BUD) gapped up by $1.3 today and has $196.82 target or 69.00% above today’s $116.46 share price. The 9 months technical chart setup indicates low risk for the $185.50 billion company. The gap was reported on Mar, 4 by If the $196.82 price target is reached, the company will be worth $128.00B more. Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. The stock is up 1.75% or $2 after the news, hitting $116.46 per share. About 1.09M shares traded hands. Anheuser Busch Inbev SA (ADR) (NYSE:BUD) has declined 8.50% since July 29, 2015 and is downtrending. It has underperformed by 3.04% the S&P500.

Out of 6 analysts covering Anheuser-Busch InBev (NYSE:BUD), 5 rate it “Buy”, 0 “Sell”, while 1 “Hold”. This means 83% are positive. Anheuser-Busch InBev was the topic in 19 analyst reports since July 21, 2015 according to StockzIntelligence Inc. Stifel Nicolaus maintained the stock on February 26 with “Buy” rating.

According to Zacks Investment Research, “Anheuser-Busch is the leading global brewer and one of the world’s top five consumer products companies. Their portfolio of well over 200 beer brands continues to forge strong connections with consumers. They invest the majority of their brand-building resources on their Focus Brands - those with the greatest growth potential such as global brands Budweiser?, Stella Artois? and Beck?s?, alongside Leffe?, Hoegaarden?, Bud Light?, Skol?, Brahma?, Antarctica?, Quilmes?, Michelob Ultra?, Harbin?, Sedrin?, Klinskoye?, Sibirskaya Korona?, Chernigivske?, Hasseroder? and Jupiler?. In addition, the company owns a 50 percent equity interest in the operating subsidiary of Grupo Modelo, Mexico’s leading brewer and owner of the global Corona? brand.”

The institutional sentiment increased to 1.19 in 2015 Q3. Its up 0.11, from 1.08 in 2015Q2. The ratio increased, as 46 funds sold all Anheuser Busch Inbev SA (ADR) shares owned while 150 reduced positions. 65 funds bought stakes while 169 increased positions. They now own 95.35 million shares or 2.97% more from 92.60 million shares in 2015Q2.

Squadra Investments holds 89.64% of its portfolio in Anheuser Busch Inbev SA (ADR) for 390,060 shares. Soroban Capital Partners Lp owns 9.14 million shares or 7.05% of their US portfolio. Moreover, Btg Pactual Global Asset Management Ltd has 6.82% invested in the company for 826,950 shares. The New York-based Emerging Sovereign Group Llc has invested 5.81% in the stock. Gardner Russo & Gardner Llc, a Pennsylvania-based fund reported 5.17 million shares.

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