Constellation Brands Inc (NYSE:STZ) Given Consensus Recommendation of "Hold" by Analysts

Key Points

• Analysts have a consensus “Hold” rating on Constellation Brands, with 12 buy, 9 hold, and 2 sell ratings. The average 12-month price target is $165.14.
• Shares opened at $122.42, near their 52-week low of $120.25, after recent analysts lowered price targets; the stock is down from its 52-week high of $168.60.
• Quarterly EPS of $3.43 missed estimates of $3.70, while revenue of $2.43 billion exceeded expectations but declined 3.3% year over year. The company pays a quarterly dividend of $1.03 per share, yielding about 3.4% annually.

Constellation Brands Inc (NYSE:STZ - Get Free Report) has been given an average recommendation of "Hold" by the twenty-three brokerages that are currently covering the firm, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and twelve have given a buy rating to the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $165.1429.

Several equities analysts recently issued reports on STZ shares. JPMorgan Chase & Co. reduced their price objective on Constellation Brands from $169.00 to $165.00 and set a "neutral" rating for the company in a report on Thursday, July 2nd. TD Cowen decreased their price objective on shares of Constellation Brands from $174.00 to $150.00 and set a "buy" rating on the stock in a research report on Thursday. Needham & Company LLC reissued a "buy" rating and issued a $185.00 price objective on shares of Constellation Brands in a research note on Thursday, July 2nd. Weiss Ratings restated a "hold (c-)" rating on shares of Constellation Brands in a report on Friday, July 31st. Finally, Freedom Capital cut shares of Constellation Brands from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, July 1st.

Constellation Brands Stock Down 0.5%

Shares of Constellation Brands stock opened at $122.42 on Friday. The company has a market cap of $20.91 billion, a P/E ratio of 11.68, a PEG ratio of 2.44 and a beta of 0.41. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.48 and a current ratio of 0.91. Constellation Brands has a one year low of $120.25 and a one year high of $168.60. The firm has a fifty day moving average of $130.80 and a two-hundred day moving average of $141.93.

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

Constellation Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 13th. Investors of record on Thursday, July 30th were given a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a dividend yield of 3.4%. The ex-dividend date was Thursday, July 30th. Constellation Brands's payout ratio is currently 39.31%.

Institutional Investors Weigh In On Constellation Brands

A number of large investors have recently bought and sold shares of the stock. Capital World Investors boosted its holdings in shares of Constellation Brands by 8.3% in the 4th quarter. Capital World Investors now owns 7,238,575 shares of the company's stock valued at $998,740,000 after buying an additional 553,974 shares during the period. Capital International Investors lifted its holdings in Constellation Brands by 48.5% in the fourth quarter. Capital International Investors now owns 6,442,600 shares of the company's stock worth $888,930,000 after acquiring an additional 2,105,546 shares during the last quarter. Geode Capital Management LLC boosted its stake in Constellation Brands by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 3,739,549 shares of the company's stock valued at $513,871,000 after acquiring an additional 54,184 shares during the period. Van ECK Associates Corp boosted its stake in Constellation Brands by 11.0% in the fourth quarter. Van ECK Associates Corp now owns 2,397,275 shares of the company's stock valued at $330,728,000 after acquiring an additional 237,073 shares during the period. Finally, Norges Bank acquired a new position in Constellation Brands in the fourth quarter valued at approximately $267,798,000. Institutional investors and hedge funds own 77.34% of the company's stock.

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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