Jefferies Financial Group Issues Pessimistic Forecast for Constellation Brands (NYSE:STZ) Stock Price

Key Points

• Jefferies cut Constellation Brands’ price target from $147 to $135 and maintained a “hold” rating, implying 8.88% upside from the prior close. Analysts overall also rate the stock “Hold,” with an average target of $165.37.
• Constellation Brands shares rose 1.3% to $123.99 but remain below their 50-day and 200-day moving averages. The stock recently traded near its 52-week low of $120.25.
• The company missed quarterly earnings expectations, reporting $3.43 per share versus the $3.70 consensus, while revenue declined 3.3% year over year to $2.43 billion. Institutional investors hold 77.34% of the stock.

Constellation Brands (NYSE:STZ - Get Free Report) had its price target dropped by stock analysts at Jefferies Financial Group from $147.00 to $135.00 in a report issued on Monday. The brokerage presently has a "hold" rating on the stock. Jefferies Financial Group's price target would suggest a potential upside of 8.88% from the company's previous close.

Several other equities research analysts also recently issued reports on the company. Citigroup restated a "buy" rating on shares of Constellation Brands in a report on Monday, May 18th. Barclays reduced their price objective on shares of Constellation Brands from $139.00 to $132.00 and set an "equal weight" rating on the stock in a research note on Tuesday, July 21st. Royal Bank Of Canada reissued an "outperform" rating and issued a $185.00 target price on shares of Constellation Brands in a research report on Thursday, July 2nd. Freedom Capital lowered shares of Constellation Brands from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, July 1st. Finally, Piper Sandler reaffirmed a "neutral" rating and set a $160.00 price target on shares of Constellation Brands in a research report on Wednesday, July 1st. Eleven equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $165.37.

Constellation Brands Stock Up 1.3%

STZ traded up $1.54 during trading hours on Monday, reaching $123.99. 1,166,144 shares of the stock traded hands, compared to its average volume of 2,217,273. The firm's fifty day simple moving average is $131.41 and its two-hundred day simple moving average is $142.88. The company has a market cap of $21.17 billion, a price-to-earnings ratio of 11.82, a PEG ratio of 2.31 and a beta of 0.41. Constellation Brands has a fifty-two week low of $120.25 and a fifty-two week high of $168.60. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.91 and a quick ratio of 0.48.

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

Institutional Investors Weigh In On Constellation Brands

A number of hedge funds have recently added to or reduced their stakes in STZ. California State Teachers Retirement System increased its holdings in shares of Constellation Brands by 14,134.2% in the 2nd quarter. California State Teachers Retirement System now owns 34,381,935 shares of the company's stock worth $4,782,183,000 after acquiring an additional 34,140,390 shares during the period. Capital International Investors boosted its stake in Constellation Brands by 48.5% during the 4th quarter. Capital International Investors now owns 6,442,600 shares of the company's stock valued at $888,930,000 after purchasing an additional 2,105,546 shares during the period. Norges Bank bought a new position in Constellation Brands in the 4th quarter worth about $267,798,000. Ameriprise Financial Inc. grew its position in Constellation Brands by 650.6% in the 2nd quarter. Ameriprise Financial Inc. now owns 1,769,741 shares of the company's stock worth $287,889,000 after purchasing an additional 1,533,961 shares during the last quarter. Finally, Wellington Management Group LLP increased its stake in shares of Constellation Brands by 14.0% in the fourth quarter. Wellington Management Group LLP now owns 6,018,653 shares of the company's stock valued at $830,333,000 after purchasing an additional 739,393 shares during the period. 77.34% of the stock is currently owned by institutional investors.

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.

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