Beer Brewing Stock Boosted on CEO Buzz

The stock is seeing attractively priced premiums at the moment

Assistant Editor
May 6, 2021 at 9:39 AM
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The shares of Anheuser Busch Inbev SA (NYSE:BUD), commonly known as AB InBev, are up 5% to trade at $74.14 at last check. This positive price action comes after the Budweiser parent announced that CEO Carlos Brito will step down in July after 15 years, and Michel Doukeries, the current North American chief, will replace him. 

Today's pop has AB InBev stock looking to open at a fresh annual high and break out past pressure at the $72 level. The equity looks to have found support near its year-to-date breakeven level late last month, and is up over 65% in the past 12 months. 

There is plenty of room for upgrades amongst analysts. Of the nine in coverage, six carry a "hold" or worse rating, with three at a "strong buy." Plus, the 12-month consensus price target of $74.46 is in line with today's levels, if the current gains hold.

A shift in the options pits could act as a tailwind as well. BUD's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 91% of readings from the past year. This indicates long puts being picked up at a faster-than-usual rate. 

Now looks like a good time to weigh in on the security's next move with options. The stock is seeing attractively priced premiums at the moment, per BUD's Schaeffer's Volatility Index (SVI) of 31%, which sits in just 14th percentile of its annual range. 

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