Constellation Brands (NYSE:STZ) Shares Gap Down After Analyst Downgrade

Constellation Brands, Inc. (NYSE:STZ) gapped down before the market opened on Tuesday after Wells Fargo & Company lowered their price target on the stock from $300.00 to $295.00. The stock had previously closed at $241.67, but opened at $232.83. Wells Fargo & Company currently has an overweight rating on the stock. Constellation Brands shares last traded at $232.64, with a volume of 402,343 shares changing hands.

STZ has been the subject of several other research reports. Morgan Stanley decreased their price objective on Constellation Brands from $305.00 to $280.00 and set an “overweight” rating for the company in a report on Monday, August 26th. Truist Financial reduced their price target on Constellation Brands from $265.00 to $255.00 and set a “hold” rating for the company in a research report on Friday, October 4th. JPMorgan Chase & Co. lowered their price objective on Constellation Brands from $307.00 to $293.00 and set an “overweight” rating on the stock in a research report on Friday, October 4th. BNP Paribas started coverage on shares of Constellation Brands in a research note on Monday. They set a “neutral” rating and a $261.00 price objective on the stock. Finally, TD Cowen cut shares of Constellation Brands from a “buy” rating to a “hold” rating and decreased their target price for the company from $300.00 to $270.00 in a research note on Tuesday, October 8th. Five investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $289.16.

Insider Buying and Selling

In other news, EVP Samuel J. Glaetzer sold 1,510 shares of the stock in a transaction dated Monday, October 14th. The shares were sold at an average price of $245.57, for a total value of $370,810.70. Following the completion of the sale, the executive vice president now directly owns 4,970 shares in the company, valued at $1,220,482.90. This represents a 23.30 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Robert Sands sold 119,274 shares of the business’s stock in a transaction dated Wednesday, October 16th. The stock was sold at an average price of $242.37, for a total transaction of $28,908,439.38. Following the transaction, the director now owns 431,729 shares in the company, valued at $104,638,157.73. The trade was a 21.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 189,956 shares of company stock worth $46,058,091. Insiders own 12.19% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Oakworth Capital Inc. grew its position in shares of Constellation Brands by 4.4% in the third quarter. Oakworth Capital Inc. now owns 989 shares of the company’s stock valued at $255,000 after purchasing an additional 42 shares in the last quarter. PFG Investments LLC grew its holdings in Constellation Brands by 3.8% in the 3rd quarter. PFG Investments LLC now owns 1,150 shares of the company’s stock valued at $296,000 after buying an additional 42 shares in the last quarter. Brighton Jones LLC increased its stake in shares of Constellation Brands by 4.7% in the 2nd quarter. Brighton Jones LLC now owns 950 shares of the company’s stock worth $244,000 after acquiring an additional 43 shares during the last quarter. Burns Matteson Capital Management LLC raised its holdings in shares of Constellation Brands by 1.5% during the 2nd quarter. Burns Matteson Capital Management LLC now owns 2,910 shares of the company’s stock worth $749,000 after acquiring an additional 44 shares during the period. Finally, Metis Global Partners LLC raised its holdings in shares of Constellation Brands by 0.8% during the 3rd quarter. Metis Global Partners LLC now owns 5,570 shares of the company’s stock worth $1,435,000 after acquiring an additional 46 shares during the period. 77.34% of the stock is owned by hedge funds and other institutional investors.

Constellation Brands Stock Performance

The stock has a market cap of $42.43 billion, a price-to-earnings ratio of 75.62, a PEG ratio of 1.69 and a beta of 1.75. The firm’s 50-day moving average price is $242.42 and its two-hundred day moving average price is $247.08. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.53 and a current ratio of 1.25.

Constellation Brands (NYSE:STZ) last posted its quarterly earnings results on Thursday, October 3rd. The company reported $4.32 earnings per share for the quarter, beating the consensus estimate of $4.08 by $0.24. The business had revenue of $2.92 billion during the quarter, compared to analysts’ expectations of $2.95 billion. Constellation Brands had a net margin of 5.29% and a return on equity of 25.34%. The business’s revenue for the quarter was up 2.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.70 EPS. On average, analysts expect that Constellation Brands, Inc. will post 13.57 EPS for the current fiscal year.

Constellation Brands Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, November 21st. Shareholders of record on Tuesday, November 5th were given a $1.01 dividend. The ex-dividend date of this dividend was Tuesday, November 5th. This represents a $4.04 dividend on an annualized basis and a yield of 1.73%. Constellation Brands’s dividend payout ratio is currently 130.74%.

About Constellation Brands

Constellation Brands, Inc, together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands.