Bank of America Lowers Constellation Brands (NYSE:STZ) Price Target to $152.00

Key Points

• Bank of America trimmed its price target on Constellation Brands from $154 to $152 and kept an underperform rating, implying only modest upside from the prior close.
• Other analysts remain mixed-to-positive on STZ, with recent target increases from firms like Piper Sandler, JPMorgan, and Wells Fargo. Overall, the stock carries a Moderate Buy consensus and an average target price of $175.26.
• Constellation Brands recently beat quarterly earnings and revenue estimates, posting $1.90 EPS versus $1.71 expected and $1.92 billion in revenue versus $1.84 billion expected. However, revenue still fell 11.3% year over year, and an executive also sold shares in a disclosed insider transaction.

Constellation Brands (NYSE:STZ - Get Free Report) had its price objective cut by equities researchers at Bank of America from $154.00 to $152.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has an "underperform" rating on the stock. Bank of America's price objective suggests a potential upside of 5.75% from the stock's previous close.

A number of other research firms also recently issued reports on STZ. Piper Sandler increased their price target on shares of Constellation Brands from $146.00 to $160.00 and gave the stock a "neutral" rating in a research note on Friday, April 10th. JPMorgan Chase & Co. increased their price target on shares of Constellation Brands from $155.00 to $163.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 1st. Deutsche Bank Aktiengesellschaft increased their price target on shares of Constellation Brands from $154.00 to $155.00 and gave the stock a "hold" rating in a research note on Friday, April 10th. Wells Fargo & Company increased their price target on shares of Constellation Brands from $180.00 to $185.00 and gave the stock an "overweight" rating in a research note on Friday, April 10th. Finally, Roth Mkm reissued a "buy" rating on shares of Constellation Brands in a research note on Thursday, April 9th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Constellation Brands has a consensus rating of "Moderate Buy" and a consensus target price of $175.26.

Constellation Brands Stock Performance

NYSE STZ opened at $143.73 on Thursday. The company has a 50-day simple moving average of $152.55 and a two-hundred day simple moving average of $149.11. The company has a quick ratio of 0.55, a current ratio of 1.08 and a debt-to-equity ratio of 1.16. Constellation Brands has a 12-month low of $126.45 and a 12-month high of $186.05. The firm has a market cap of $24.75 billion, a price-to-earnings ratio of 14.99, a PEG ratio of 3.24 and a beta of 1.75.

Constellation Brands (NYSE:STZ - Get Free Report) last posted its quarterly earnings results on Wednesday, April 8th. The company reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.71 by $0.19. Constellation Brands had a net margin of 17.29% and a return on equity of 26.18%. The business had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.84 billion. During the same period in the prior year, the business posted $2.63 earnings per share. The company's revenue was down 11.3% on a year-over-year basis. On average, equities analysts forecast that Constellation Brands will post 11.9 EPS for the current year.

Insider Buying and Selling at Constellation Brands

In related news, EVP James O. Bourdeau sold 4,407 shares of the firm's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $143.24, for a total transaction of $631,258.68. Following the completion of the sale, the executive vice president owned 9,109 shares of the company's stock, valued at $1,304,773.16. This trade represents a 32.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 12.45% of the company's stock.

Institutional Investors Weigh In On Constellation Brands

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Oppenheimer Asset Management Inc. lifted its stake in shares of Constellation Brands by 329.8% in the third quarter. Oppenheimer Asset Management Inc. now owns 73,323 shares of the company's stock worth $9,874,000 after buying an additional 56,263 shares in the last quarter. Nordea Investment Management AB lifted its stake in shares of Constellation Brands by 6.1% in the fourth quarter. Nordea Investment Management AB now owns 867,776 shares of the company's stock worth $120,300,000 after buying an additional 49,625 shares in the last quarter. LSV Asset Management purchased a new position in shares of Constellation Brands in the third quarter worth about $33,018,000. Diamond Hill Capital Management Inc. lifted its stake in shares of Constellation Brands by 97.3% in the third quarter. Diamond Hill Capital Management Inc. now owns 242,171 shares of the company's stock worth $32,613,000 after buying an additional 119,400 shares in the last quarter. Finally, Portside Wealth Group LLC lifted its stake in shares of Constellation Brands by 455.8% in the third quarter. Portside Wealth Group LLC now owns 8,971 shares of the company's stock worth $1,208,000 after buying an additional 7,357 shares in the last quarter. Hedge funds and other institutional investors own 77.34% of the company's stock.

About Constellation Brands

Constellation Brands, Inc is a leading producer and marketer of beer, wine and spirits, with operations spanning production, importation, marketing and distribution. The company's beverage portfolio includes a range of premium and mainstream wines and spirits alongside major imported beer brands; in the U.S. market Constellation is widely known for its role in bringing Mexican imports such as Corona and Modelo to American consumers. Constellation supplies retail, on‑premise and foodservice channels and supports its brands with national sales and marketing platforms and supply‑chain capabilities.

The company traces its roots to the Canandaigua Wine Company, founded by Marvin Sands in 1945, and evolved through organic growth and acquisition into a diversified beverage company.

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