Constellation Brands Inc (NYSE:STZ) Stock Now Rated "Hold" by Sell-Side Analysts

Key Points

• Analysts rate Constellation Brands “Hold” overall: Among 23 brokerages, 12 recommend buying, seven hold, and four sell; the average one-year price target is $154.09.
• The company beat quarterly estimates, reporting EPS of $3.74 versus $3.62 expected and revenue of $2.63 billion versus $2.54 billion expected. Revenue rose 6.1% year over year.
• Constellation announced a quarterly dividend of $1.03 per share, equivalent to $4.12 annually and a 2.9% yield.

Shares of Constellation Brands Inc (NYSE:STZ - Get Free Report) have been assigned an average recommendation of "Hold" from the twenty-three brokerages that are presently covering the firm, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a sell recommendation, seven have given a hold recommendation and twelve have issued a buy recommendation on the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $154.09.

Several equities research analysts have commented on the stock. Needham & Company LLC lowered their target price on shares of Constellation Brands from $185.00 to $150.00 and set a "buy" rating for the company in a research note on Thursday, October 8th. Evercore set a $160.00 target price on Constellation Brands in a research report on Monday, September 21st. The Goldman Sachs Group set a $155.00 target price on Constellation Brands in a research note on Wednesday, October 7th. Piper Sandler set a $125.00 price target on Constellation Brands in a research note on Thursday, October 8th. Finally, Freedom Broker upgraded Constellation Brands from a "hold" rating to a "buy" rating and dropped their price target for the stock from $173.00 to $158.00 in a research report on Thursday, October 8th.

Constellation Brands Price Performance

Shares of NYSE STZ opened at $141.85 on Friday. The firm's 50 day simple moving average is $126.11 and its 200-day simple moving average is $141.46. The stock has a market capitalization of $24.00 billion, a price-to-earnings ratio of 12.72, a PEG ratio of 2.88 and a beta of 0.39. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.00 and a quick ratio of 0.53. Constellation Brands has a 12 month low of $110.60 and a 12 month high of $168.60.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings data on Tuesday, October 6th. The company reported $3.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.62 by $0.12. The business had revenue of $2.63 billion during the quarter, compared to analysts' expectations of $2.54 billion. Constellation Brands had a net margin of 19.57% and a return on equity of 24.75%. The company's revenue for the quarter was up 6.1% on a year-over-year basis. During the same period in the previous year, the company earned $3.63 EPS. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Analysts expect that Constellation Brands will post 11.85 EPS for the current year.

Constellation Brands Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be paid a $1.03 dividend. This represents a $4.12 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Friday, October 30th. Constellation Brands's dividend payout ratio (DPR) is 36.95%.

Institutional Investors Weigh In On Constellation Brands

Institutional investors have recently added to or reduced their stakes in the company. Ables Iannone Moore & Associates Inc. lifted its stake in shares of Constellation Brands by 105.2% in the third quarter. Ables Iannone Moore & Associates Inc. now owns 16,904 shares of the company's stock worth $1,911,000 after acquiring an additional 8,667 shares during the period. Ally Financial Inc. purchased a new position in shares of Constellation Brands during the second quarter worth approximately $1,600,000. Diamond Hill Capital Management LLC Investment Advisor purchased a new position in Constellation Brands during the 2nd quarter valued at $31,582,000. Junto Capital Management LP purchased a new stake in shares of Constellation Brands in the 2nd quarter worth approximately $21,683,000. Finally, Concurrent Investment Advisors LLC increased its holdings in Constellation Brands by 1,613.6% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 27,915 shares of the company's stock worth $3,883,000 after buying an additional 26,286 shares in the last quarter. 77.34% of the stock is currently owned by institutional investors and hedge funds.

Constellation Brands Company Profile

Constellation Brands, Inc is a beverage alcohol company that develops, produces, markets and distributes beer, wine and spirits. Its beer portfolio includes Modelo Especial, Corona Extra, Corona Light, Pacifico and Victoria, while its wine and spirits brands include Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company, Simi, Ruffino, High West and Casa Noble.

The company's beer business is primarily focused on the United States, where Constellation markets and distributes several leading Mexican beer brands under license from Grupo Modelo.

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