Ambev (NYSE:ABEV) Stock Rockets 18% In a Month: What’s The Buzz?

Brazilian brewing giant Ambev (NYSE:ABEV) has been in significant focus among investors over the course of the past month and during that period, the stock has managed to clock gains of as much as 18%.

Market Stats

On Thursday, ABEV stock closed higher by 0.31% at $3.19 with more than 21.99 million shares, compared to its average volume of 26.06 million shares. The stock has moved within a range of $3.1900 – 3.2700 after opening the trade at $3.22.

Major Trigger

While there has been no recent news about the company, it seems that the company’s financial result for the third fiscal quarter is the reason behind the steady rally. The results had been announced back on October 28, 2021. The third quarter saw Ambev recording a strong rebound in its business and that was primarily due to the reopening of bars and restaurants following the coronavirus pandemic.

That led to a significant jump in sales year on year. Excluding the jump from sales due to disinvestments and acquisitions, the company managed to generate a jump of as much as 7.7% in the form of organic volume. On the other hand, the organic revenues for Ambev jumped to as much as $660.9 million and that reflected a year on year rise of as much as 20.8%. Such a strong rebound has possibly led to considerable optimism among investors and hence, the rally in the stock in the past month is perhaps not a surprise.

Traders Corner

ABEV stock is trading above the 200-Day and 50-Day Moving averages of $3.06 and $2.91 respectively. Moreover, the stock is trading above the 20-Day moving average of $3. The stock is up 18% in the past month.