Why Anheuser-Busch (BUD) Stock Is Falling

Anheuser-Busch Inbev SA BUD shares are trading lower by 5.45% to $61.03 during Thursday’s session after Altria Group Inc MO announced its intent to sell a portion of its investment in the company.

Altria announced its intention to sell a portion of its investment in Anheuser-Busch InBev SA/NA (ABI) through a global secondary offering. This offering includes public offerings of ABI shares in the United States and other countries, as well as a private placement in Europe and the UK. Additionally, ABI will repurchase $200 million of shares directly from Altria.

Altria currently holds approximately 10% ownership in ABI and is offering 35 million of its ordinary shares. The underwriters may have an option to purchase additional shares, and Altria has agreed to a 180-day lockup with the lead underwriter for its remaining ABI shares. The proceeds from the offering will be used for additional share repurchases of Altria’s common stock.

Altria’s CEO, Billy Gifford, expressed confidence in the transaction, stating it is an opportunity to unlock value from their ABI investment while maintaining confidence in ABI’s long-term strategies and brands. The offering and partial sale have been approved by Altria’s Board of Directors.

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Is BUD A Good Stock To Buy?

When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future.

Anheuser-Busch InBev BUD has reported average annual revenue growth of 3.34% over the past 5 years. .

It's also important to pay attention to valuation when deciding whether to buy a stock. Anheuser-Busch InBev has a forward P/E ratio of 18.94. This means investors are paying $18.94 for each dollar of expected earnings in the future. The average forward P/E ratio of Anheuser-Busch InBev's peers is 17.81.

Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out Benzinga PRO.

BUD has a 52-week high of $67.09 and a 52-week low of $51.66.