BMO Capital Markets Issues Pessimistic Forecast for Constellation Brands (NYSE:STZ) Stock Price

Key Points

• BMO Capital Markets has reduced its price target for Constellation Brands from $215.00 to $190.00, while maintaining an "outperform" rating on the stock.
• Constellation Brands reported earnings per share (EPS) of $3.22 for the last quarter, missing estimates and indicating a year-over-year revenue decrease of 5.5%.
• Analysts have mixed sentiments about the stock, with one Strong Buy rating, thirteen Buy ratings, seven Hold ratings, and four Sell ratings, leading to an average consensus target price of $195.13.

Constellation Brands (NYSE:STZ - Free Report) had its price target lowered by BMO Capital Markets from $215.00 to $190.00 in a research note issued to investors on Thursday morning,Benzinga reports. The firm currently has an outperform rating on the stock.

A number of other equities research analysts also recently issued reports on the stock. Morgan Stanley cut their target price on shares of Constellation Brands from $195.00 to $176.00 and set an "equal weight" rating for the company in a research report on Wednesday. Jefferies Financial Group decreased their target price on shares of Constellation Brands from $205.00 to $179.00 and set a "buy" rating for the company in a research report on Wednesday. Truist Financial raised shares of Constellation Brands from a "hold" rating to a "buy" rating and boosted their target price for the stock from $190.00 to $215.00 in a research report on Wednesday, May 7th. Citigroup reissued a "negative" rating on shares of Constellation Brands in a research report on Monday, August 25th. Finally, Barclays set a $202.00 target price on shares of Constellation Brands and gave the stock an "overweight" rating in a research report on Thursday, June 26th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, eight have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat, Constellation Brands has a consensus rating of "Moderate Buy" and an average price target of $194.36.

Constellation Brands Stock Up 1.7%

STZ stock traded up $2.50 during midday trading on Thursday, reaching $148.38. The company had a trading volume of 3,045,709 shares, compared to its average volume of 2,209,589. Constellation Brands has a 1 year low of $144.81 and a 1 year high of $261.06. The company has a current ratio of 1.07, a quick ratio of 0.68 and a debt-to-equity ratio of 1.30. The company has a market capitalization of $26.16 billion, a P/E ratio of -62.08, a PEG ratio of 0.45 and a beta of 0.67. The company has a 50 day moving average of $167.18 and a two-hundred day moving average of $175.26.

Constellation Brands (NYSE:STZ - Get Free Report) last released its earnings results on Tuesday, July 1st. The company reported $3.22 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.45 by ($0.23). Constellation Brands had a positive return on equity of 31.41% and a negative net margin of 4.11%.The company had revenue of $2.52 billion during the quarter, compared to analysts' expectations of $2.57 billion. During the same quarter in the previous year, the company earned $3.57 EPS. The firm's quarterly revenue was down 5.5% compared to the same quarter last year. Constellation Brands has set its FY 2026 guidance at 12.600-12.900 EPS. On average, equities research analysts expect that Constellation Brands will post 13.5 earnings per share for the current fiscal year.

Constellation Brands Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 14th. Stockholders of record on Wednesday, July 30th were given a $1.02 dividend. This represents a $4.08 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Wednesday, July 30th. Constellation Brands's dividend payout ratio is currently -170.71%.

Insider Buying and Selling at Constellation Brands

In other news, EVP James O. Bourdeau sold 821 shares of the stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $169.00, for a total value of $138,749.00. Following the completion of the sale, the executive vice president directly owned 9,438 shares of the company's stock, valued at approximately $1,595,022. This represents a 8.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 12.45% of the company's stock.

Institutional Trading of Constellation Brands

A number of institutional investors and hedge funds have recently modified their holdings of STZ. Vanguard Group Inc. increased its position in shares of Constellation Brands by 18.6% during the first quarter. Vanguard Group Inc. now owns 18,417,604 shares of the company's stock valued at $3,379,999,000 after purchasing an additional 2,882,817 shares during the period. Wellington Management Group LLP boosted its position in shares of Constellation Brands by 127.9% during the 1st quarter. Wellington Management Group LLP now owns 4,480,788 shares of the company's stock valued at $822,314,000 after acquiring an additional 2,514,517 shares in the last quarter. Ameriprise Financial Inc. boosted its position in shares of Constellation Brands by 650.6% during the 2nd quarter. Ameriprise Financial Inc. now owns 1,769,741 shares of the company's stock valued at $287,889,000 after acquiring an additional 1,533,961 shares in the last quarter. Norges Bank acquired a new stake in shares of Constellation Brands during the 2nd quarter valued at about $239,737,000. Finally, Berkshire Hathaway Inc boosted its position in shares of Constellation Brands by 11.6% during the 2nd quarter. Berkshire Hathaway Inc now owns 13,400,000 shares of the company's stock valued at $2,179,912,000 after acquiring an additional 1,391,000 shares in the last quarter. 77.34% of the stock is currently owned by institutional investors.

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.