Yesterday, we broke the news about tobacco giant Altria (New York Stock Exchange: Missouri) and plans to sell some of its shares in Anheuser-Busch InBev (New York Stock Exchange: Bud). But today, we’re seeing the fallout from that decision, and it’s the disaster some may have feared for Anheuser-Busch InBev, which plummeted nearly 6% in Thursday afternoon trading.
This withdrawal caused other shareholders to follow suit, causing a small-scale withdrawal rush. Eventually, the situation became so bad that Anheuser-Busch InBev’s trading was suspended at the request of the Belgian Financial Services and Markets Authority. Altria sold only about 35 million of the 197 million shares it owned at the time, but that was enough to prompt a mad dash.
Things were starting to look up…
This latest bad news comes at a time when Anheuser-Busch is enjoying some positive news. BUD managed to avoid a potential worker strike and received a further boost after former President Donald Trump suggested the brand deserved a “…second chance.” But it was hard to deny that the aftermath of the Dylan Mulvaney incident continues to be felt to this day. In fact, Anheuser-Busch InBev released a disastrous financial report, most of which was directly attributable to the boycott surrounding Bud Light.
What is the target price for BUD stock?
Turning to Wall Street, analysts have given BUD stock a consensus rating of Moderate Buy, based on 2 buys and 1 hold assignments over the past three months, as shown in the chart below. ”. BUD’s average price target of $74.50 per share means it has 22.09% upside potential, after the stock has gained 3.28% over the past year.
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