Constellation Brands (NYSE:STZ) Sets New 12-Month Low After Analyst Downgrade

Shares of Constellation Brands Inc (NYSE:STZ) hit a new 52-week low during mid-day trading on Thursday after BNP Paribas Exane lowered their price target on the stock from $115.00 to $110.00. BNP Paribas Exane currently has an underperform rating on the stock. Constellation Brands traded as low as $115.50 and last traded at $116.3580, with a volume of 1485598 shares. The stock had previously closed at $117.59.

Other research analysts have also issued research reports about the company. TD Cowen reduced their price target on Constellation Brands from $174.00 to $150.00 and set a “buy” rating for the company in a research report on Thursday, September 17th. Piper Sandler reissued a “neutral” rating and set a $160.00 price target on shares of Constellation Brands in a report on Wednesday, July 1st. Needham & Company LLC restated a “buy” rating and set a $185.00 price objective on shares of Constellation Brands in a research note on Thursday, July 2nd. JPMorgan Chase & Co. reduced their price objective on shares of Constellation Brands from $169.00 to $165.00 and set a “neutral” rating for the company in a report on Thursday, July 2nd. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Constellation Brands in a research report on Friday, July 31st. Twelve research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $161.67.

Hedge Funds Weigh In On Constellation Brands

Several hedge funds have recently modified their holdings of STZ. Capital World Investors boosted its stake in Constellation Brands by 8.3% during the fourth quarter. Capital World Investors now owns 7,238,575 shares of the company’s stock valued at $998,740,000 after buying an additional 553,974 shares in the last quarter. Capital International Investors raised its position in Constellation Brands by 48.5% in the fourth quarter. Capital International Investors now owns 6,442,600 shares of the company’s stock worth $888,930,000 after acquiring an additional 2,105,546 shares in the last quarter. Geode Capital Management LLC raised its position in Constellation Brands by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 3,739,549 shares of the company’s stock worth $513,871,000 after acquiring an additional 54,184 shares in the last quarter. Van ECK Associates Corp lifted its holdings in Constellation Brands by 11.0% in the 4th quarter. Van ECK Associates Corp now owns 2,397,275 shares of the company’s stock valued at $330,728,000 after acquiring an additional 237,073 shares during the last quarter. Finally, Norges Bank acquired a new stake in Constellation Brands in the 4th quarter valued at about $267,798,000. 77.34% of the stock is currently owned by institutional investors and hedge funds.

Constellation Brands Stock Performance

The company has a current ratio of 0.91, a quick ratio of 0.48 and a debt-to-equity ratio of 1.06. The company’s 50-day moving average price is $129.18 and its two-hundred day moving average price is $140.72. The company has a market cap of $19.51 billion, a P/E ratio of 10.90, a price-to-earnings-growth ratio of 2.33 and a beta of 0.41.

Constellation Brands (NYSE:STZ) last released its earnings results on Tuesday, June 30th. The company reported $3.43 EPS for the quarter, missing analysts’ consensus estimates of $3.70 by ($0.27). Constellation Brands had a return on equity of 25.58% and a net margin of 18.87%.The business had revenue of $2.43 billion during the quarter, compared to the consensus estimate of $2.39 billion. During the same quarter in the previous year, the firm earned $3.22 earnings per share. The firm’s revenue for the quarter was down 3.3% compared to the same quarter last year. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, equities analysts forecast that Constellation Brands Inc will post 11.84 earnings per share for the current year.

Constellation Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 13th. Stockholders of record on Thursday, July 30th were paid a dividend of $1.03 per share. The ex-dividend date of this dividend was Thursday, July 30th. This represents a $4.12 annualized dividend and a dividend yield of 3.6%. Constellation Brands’s dividend payout ratio (DPR) is currently 39.31%.

Constellation Brands Company Profile

Constellation Brands, Inc (NYSE: STZ) is a beverage alcohol company that produces, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Corona Extra, Modelo Especial, Modelo Negra, Pacifico and Victoria, along with wine brands including Robert Mondavi, The Prisoner, Kim Crawford and Meiomi. Its spirits portfolio includes brands such as Casa Noble tequila and High West whiskey.

The company’s beer business is focused primarily on the United States, where Constellation markets and sells Mexican beer brands brewed by its production operations in Mexico.