Zacks Investment Research Lowers Constellation Brands (NYSE:STZ) to Hold


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Zacks Investment Research cut shares of Constellation Brands (NYSE:STZ) from a buy rating to a hold rating in a research report released on Monday morning, Zacks.com reports. Zacks Investment Research currently has $242.00 target price on the stock.

According to Zacks, “Constellation Brands has outpaced the industry in the past three months on a robust third-quarter fiscal 2021 performance. Notably, earnings and sales beat estimates and improved year over year. Moreover, it delivered an earnings surprise for the 12th consecutive quarter. Results were aided by strong shipments across both segments and robust depletion growth at the beer business, as well as strong margins. Beer business depletions were aided by strength in the Modelo and Corona Brand Families, while the Power Brands in the wine & spirits grew double-digits. However, operating margin for the wine and spirits segment declined on unfavorable fixed cost absorption, resulting from wildfires and higher marketing costs. It expects costs related to wildfires to hurt the wine & spirits business in the near-term. Canopy-related costs are also headwinds.”

A number of other brokerages have also commented on STZ. Morgan Stanley boosted their target price on Constellation Brands from $240.00 to $260.00 and gave the company an overweight rating in a research report on Friday, January 8th. Argus boosted their target price on Constellation Brands from $230.00 to $272.00 and gave the company a buy rating in a research report on Friday, January 8th. UBS Group boosted their target price on Constellation Brands from $238.00 to $256.00 and gave the company a buy rating in a research report on Friday, January 8th. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell boosted their target price on Constellation Brands from $220.00 to $244.00 in a research report on Friday, January 8th. Finally, Atlantic Securities lowered Constellation Brands from an overweight rating to a neutral rating and set a $196.00 target price for the company. in a research report on Wednesday, October 14th. Ten research analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. The company currently has a consensus rating of Buy and a consensus target price of $222.38.

STZ stock opened at $224.57 on Monday. The stock has a 50-day moving average price of $215.05 and a 200-day moving average price of $191.59. Constellation Brands has a 1-year low of $104.28 and a 1-year high of $240.76. The company has a current ratio of 1.85, a quick ratio of 1.16 and a debt-to-equity ratio of 0.92. The firm has a market cap of $43.52 billion, a PE ratio of 40.32, a price-to-earnings-growth ratio of 3.26 and a beta of 0.94.

Constellation Brands (NYSE:STZ) last posted its quarterly earnings data on Wednesday, January 6th. The company reported $3.09 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $2.41 by $0.68. Constellation Brands had a return on equity of 15.08% and a net margin of 12.35%. The firm had revenue of $2.44 billion during the quarter, compared to analyst estimates of $1.91 billion. During the same period last year, the company posted $2.14 EPS. The business’s quarterly revenue was up 22.5% on a year-over-year basis. On average, analysts forecast that Constellation Brands will post 9.13 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 23rd. Stockholders of record on Tuesday, February 9th will be paid a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.34%. The ex-dividend date of this dividend is Monday, February 8th. Constellation Brands’s payout ratio is 10.20%.

In other news, Director Judy Schmeling sold 5,662 shares of Constellation Brands stock in a transaction on Monday, November 30th. The stock was sold at an average price of $205.51, for a total transaction of $1,163,597.62. Following the sale, the director now directly owns 9,938 shares in the company, valued at approximately $2,042,358.38. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Robert Lee Hanson sold 6,101 shares of Constellation Brands stock in a transaction on Friday, January 8th. The stock was sold at an average price of $228.78, for a total value of $1,395,786.78. The disclosure for this sale can be found here. Insiders own 15.77% of the company’s stock.

A number of institutional investors and hedge funds have recently made changes to their positions in STZ. FMR LLC increased its holdings in Constellation Brands by 64.3% in the 2nd quarter. FMR LLC now owns 1,335,775 shares of the company’s stock worth $233,694,000 after acquiring an additional 522,569 shares during the last quarter. Assenagon Asset Management S.A. increased its holdings in Constellation Brands by 2,483.6% in the 3rd quarter. Assenagon Asset Management S.A. now owns 291,122 shares of the company’s stock worth $55,171,000 after acquiring an additional 279,854 shares during the last quarter. Nuveen Asset Management LLC increased its holdings in Constellation Brands by 30.6% in the 3rd quarter. Nuveen Asset Management LLC now owns 843,810 shares of the company’s stock worth $159,910,000 after acquiring an additional 197,819 shares during the last quarter. Kehrs Ridge Capital LLC purchased a new stake in Constellation Brands in the 3rd quarter worth about $22,565,000. Finally, Point72 Asset Management L.P. increased its holdings in Constellation Brands by 61.4% in the 3rd quarter. Point72 Asset Management L.P. now owns 304,077 shares of the company’s stock worth $57,626,000 after acquiring an additional 115,664 shares during the last quarter. 71.77% of the stock is owned by institutional investors.

Constellation Brands Company Profile

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

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