Constellation Brands Inc (STZ) - What Are Analysts Thinking About This Stock?

Key Points

• Analyst consensus is “Hold”: Among 24 analysts, 12 rate Constellation Brands a buy, seven a hold and five a sell. The average 12-month price target is $153.09, above the reported share price of $126.28.
• Recent analyst actions were mixed but generally cautious: Jefferies, Wells Fargo and Bank of America lowered their price targets, while JPMorgan modestly raised its target to $136 and maintained a neutral rating.
• Quarterly results exceeded expectations: Constellation reported $3.74 in adjusted EPS and $2.63 billion in revenue, beating estimates while revenue grew 6.1% year over year. The company also declared a quarterly dividend of $1.03, equivalent to a 3.3% annualized yield.

Shares of Constellation Brands Inc (NYSE:STZ - Get Free Report) have earned an average rating of "Hold" from the twenty-four research firms that are covering the firm, Marketbeat reports. Five equities research analysts have rated the stock with a sell rating, seven have given a hold rating and twelve have issued a buy rating on the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $153.09.

STZ has been the topic of a number of recent analyst reports. Freedom Capital lowered Constellation Brands from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, July 1st. Jefferies Financial Group decreased their price objective on Constellation Brands from $147.00 to $135.00 and set a "hold" rating on the stock in a report on Monday, September 14th. JPMorgan Chase & Co. lifted their price objective on Constellation Brands from $133.00 to $136.00 and gave the company a "neutral" rating in a research report on Thursday, October 8th. Wells Fargo & Company lowered their target price on shares of Constellation Brands from $170.00 to $140.00 and set an "overweight" rating for the company in a report on Monday, October 5th. Finally, Bank of America dropped their price target on shares of Constellation Brands from $152.00 to $145.00 and set an "underperform" rating for the company in a research report on Thursday, July 2nd.

Institutional Trading of Constellation Brands

Institutional investors have recently made changes to their positions in the stock. Ables Iannone Moore & Associates Inc. raised its holdings in shares of Constellation Brands by 105.2% in the 3rd quarter. Ables Iannone Moore & Associates Inc. now owns 16,904 shares of the company's stock worth $1,911,000 after purchasing an additional 8,667 shares during the period. Ally Financial Inc. acquired a new position in shares of Constellation Brands during the second quarter worth $1,600,000. Diamond Hill Capital Management LLC Investment Advisor acquired a new position in Constellation Brands in the 2nd quarter worth $31,582,000. Concurrent Investment Advisors LLC lifted its stake in shares of Constellation Brands by 1,613.6% in the second quarter. Concurrent Investment Advisors LLC now owns 27,915 shares of the company's stock worth $3,883,000 after acquiring an additional 26,286 shares in the last quarter. Finally, CORDA Investment Management LLC. raised its position in shares of Constellation Brands by 12.6% in the 1st quarter. CORDA Investment Management LLC. now owns 140,050 shares of the company's stock valued at $21,008,000 after purchasing an additional 15,694 shares in the last quarter. 77.34% of the stock is owned by hedge funds and other institutional investors.

Constellation Brands Stock Performance

NYSE:STZ opened at $126.28 on Tuesday. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.00 and a quick ratio of 0.53. The firm has a market cap of $21.57 billion, a PE ratio of 11.33, a P/E/G ratio of 2.51 and a beta of 1.75. The firm has a 50 day simple moving average of $125.64 and a 200-day simple moving average of $137.83. Constellation Brands has a 1-year low of $110.60 and a 1-year high of $168.60.

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

Constellation Brands Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be issued a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Friday, October 30th. Constellation Brands's dividend payout ratio (DPR) is 36.95%.

Constellation Brands Company Profile

Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.

The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation's products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.

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