Constellation Brands Inc (NYSE:STZ) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Constellation Brands has an average analyst rating of “Moderate Buy” from 22 research firms, with a consensus 12-month price target of $176.30.
• Recent analyst actions were mixed but generally constructive: TD Cowen upgraded the stock to buy and lifted its target to $190, while other firms adjusted targets and kept ratings ranging from underperform to outperform.
• The company recently beat quarterly expectations, reporting EPS of $1.90 versus $1.71 expected and revenue of $1.92 billion, and it also raised its quarterly dividend to $1.03 per share.

Constellation Brands Inc (NYSE:STZ - Get Free Report) has earned an average rating of "Moderate Buy" from the twenty-two research firms that are presently covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, seven have issued a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating on the company. The average 1 year target price among analysts that have issued ratings on the stock in the last year is $176.30.

Several research firms have weighed in on STZ. TD Cowen raised Constellation Brands from a "hold" rating to a "buy" rating and raised their price target for the stock from $142.00 to $190.00 in a research report on Monday, April 13th. Roth Mkm reissued a "buy" rating on shares of Constellation Brands in a report on Thursday, April 9th. Bank of America upped their target price on Constellation Brands from $142.00 to $154.00 and gave the stock an "underperform" rating in a research report on Friday, April 10th. Piper Sandler boosted their target price on shares of Constellation Brands from $146.00 to $160.00 and gave the company a "neutral" rating in a research note on Friday, April 10th. Finally, Evercore set a $175.00 target price on shares of Constellation Brands and gave the stock an "outperform" rating in a research report on Friday, April 10th.

Insider Buying and Selling at Constellation Brands

In other 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 approximately $1,304,773.16. This trade represents a 32.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 12.45% of the company's stock.

Hedge Funds Weigh In On Constellation Brands

Hedge funds and other institutional investors have recently bought and sold shares of the business. Capital International Investors raised its position in Constellation Brands by 48.5% in the 4th quarter. Capital International Investors now owns 6,442,600 shares of the company's stock valued at $888,930,000 after buying an additional 2,105,546 shares during the last quarter. Norges Bank bought a new stake in shares of Constellation Brands during the 4th quarter worth approximately $267,798,000. Ameriprise Financial Inc. lifted its stake in Constellation Brands by 650.6% in the 2nd quarter. Ameriprise Financial Inc. now owns 1,769,741 shares of the company's stock valued at $287,889,000 after purchasing an additional 1,533,961 shares during the last quarter. Wellington Management Group LLP increased its position in Constellation Brands by 14.0% in the 4th quarter. Wellington Management Group LLP now owns 6,018,653 shares of the company's stock valued at $830,333,000 after acquiring an additional 739,393 shares during the period. Finally, Pzena Investment Management LLC acquired a new stake in shares of Constellation Brands during the fourth quarter worth $81,381,000. 77.34% of the stock is owned by institutional investors.

Constellation Brands Stock Performance

NYSE STZ opened at $142.55 on Friday. Constellation Brands has a fifty-two week low of $126.45 and a fifty-two week high of $196.91. The stock's fifty day moving average is $152.68 and its two-hundred day moving average is $148.03. The firm has a market capitalization of $24.55 billion, a P/E ratio of 14.86, a price-to-earnings-growth ratio of 3.08 and a beta of 0.43. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.55 and a current ratio of 1.08.

Constellation Brands (NYSE:STZ - Get Free Report) last posted its quarterly earnings data 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. The firm had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $1.84 billion. Constellation Brands had a return on equity of 26.18% and a net margin of 17.29%.The company's quarterly revenue was down 11.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.63 EPS. On average, research analysts anticipate that Constellation Brands will post 11.9 earnings per share for the current year.

Constellation Brands Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 14th. Investors of record on Wednesday, April 29th were given a $1.03 dividend. This represents a $4.12 annualized dividend and a yield of 2.9%. This is a boost from Constellation Brands's previous quarterly dividend of $1.02. The ex-dividend date of this dividend was Wednesday, April 29th. Constellation Brands's dividend payout ratio (DPR) is currently 42.96%.

Constellation Brands Company Profile

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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