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

Key Points

• Constellation Brands (NYSE:STZ) currently carries a consensus analyst rating of "Hold" from 23 covering analysts, with the group split between 2 sells, 9 holds, 11 buys, and 1 strong buy.
• The company’s latest quarter missed earnings expectations, reporting $3.43 EPS versus the $3.70 consensus, though revenue came in slightly above estimates at $2.43 billion.
• Constellation Brands declared a quarterly dividend of $1.03 per share, implying an annualized yield of about 3.0%, even as several analysts recently trimmed price targets and adopted a more cautious tone.

Constellation Brands Inc (NYSE:STZ - Get Free Report) has been assigned an average rating of "Hold" from the twenty-three analysts that are currently covering the company, MarketBeat reports. Two equities research analysts have rated the stock with a sell recommendation, nine have given a hold recommendation, eleven have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $167.8947.

A number of research analysts recently commented on the company. TD Cowen restated a "buy" rating and issued a $174.00 target price on shares of Constellation Brands in a research note on Wednesday. Citigroup reiterated a "buy" rating on shares of Constellation Brands in a research note on Monday, May 18th. Roth Mkm reissued a "buy" rating and issued a $209.00 price target on shares of Constellation Brands in a report on Thursday. Bank of America dropped their price objective on shares of Constellation Brands from $152.00 to $145.00 and set an "underperform" rating for the company in a research note on Thursday. Finally, Morgan Stanley reduced their price objective on shares of Constellation Brands from $183.00 to $158.00 and set an "equal weight" rating for the company in a report on Thursday.

Constellation Brands Trading Down 0.1%

Shares of STZ opened at $137.36 on Friday. The stock's 50-day moving average price is $144.68 and its 200 day moving average price is $150.00. The company has a quick ratio of 0.55, a current ratio of 0.91 and a debt-to-equity ratio of 1.06. The firm has a market capitalization of $23.65 billion, a price-to-earnings ratio of 13.11, a P/E/G ratio of 4.07 and a beta of 0.39. Constellation Brands has a 12-month low of $126.45 and a 12-month high of $178.13.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The company reported $3.43 EPS for the quarter, missing analysts' consensus estimates of $3.70 by ($0.27). Constellation Brands had a return on equity of 25.58% and a net margin of 18.87%.The firm had revenue of $2.43 billion during the quarter, compared to the consensus estimate of $2.39 billion. During the same quarter in the prior year, the business posted $3.22 EPS. Constellation Brands's revenue was down 3.3% compared to the same quarter last year. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, research analysts predict that Constellation Brands will post 11.72 earnings per share for the current year.

Constellation Brands Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Investors of record on Thursday, July 30th will be given a $1.03 dividend. This represents a $4.12 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Thursday, July 30th. Constellation Brands's dividend payout ratio is 39.31%.

Key Headlines Impacting Constellation Brands

Here are the key news stories impacting Constellation Brands this week:

• Positive Sentiment: Constellation’s Q1 results were better than expected, helped by beer growth, wine and spirits momentum, margin gains, and strong free cash flow, while the company reaffirmed full-year guidance. Q1 Deep Dive: Evaluating STZ's Financial and Operating Metrics
• Positive Sentiment: Several brokers remained constructive, including BMO Capital Markets, Royal Bank of Canada, TD Cowen, and Needham, with some reiterating buy/outperform ratings and high price targets well above the current trading level. Analyst rating updates
• Neutral Sentiment: Analysts are split on the stock, with a number of price-target cuts from JPMorgan, Deutsche Bank, Barclays, Morgan Stanley, and Bank of America offset by other firms maintaining positive views. Analyst forecast changes after Q1
• Neutral Sentiment: Management’s earnings call commentary was described as “cautious confidence,” suggesting the company sees near-term volatility but remains focused on brand strength and cash generation. Constellation Brands Earnings Call Shows Cautious Confidence
• Negative Sentiment: Freedom Capital downgraded Constellation Brands to hold, adding to the cautious tone around the stock. Constellation Brands was downgraded by Freedom Capital
• Negative Sentiment: Commentary from analysts and company coverage highlighted long-term risks tied to alcohol consumption trends, softer beer demand, and consumer selectivity, which could weigh on growth expectations. Constellation Faces Long-Term Risks Related to Alcohol Consumption

Insider Buying and Selling

In other Constellation Brands news, EVP James O. Bourdeau sold 4,407 shares of Constellation Brands stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total transaction of $631,258.68. Following the sale, the executive vice president directly owned 9,109 shares of the company's stock, valued at approximately $1,304,773.16. The trade was a 32.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 12.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Constellation Brands

Hedge funds have recently modified their holdings of the stock. Choreo LLC boosted its stake in Constellation Brands by 2.1% in the 4th quarter. Choreo LLC now owns 3,116 shares of the company's stock valued at $437,000 after buying an additional 63 shares in the last quarter. HM Payson & Co. lifted its holdings in shares of Constellation Brands by 10.0% during the fourth quarter. HM Payson & Co. now owns 701 shares of the company's stock valued at $97,000 after acquiring an additional 64 shares during the period. Clearstead Trust LLC boosted its stake in shares of Constellation Brands by 14.2% in the 4th quarter. Clearstead Trust LLC now owns 548 shares of the company's stock valued at $76,000 after purchasing an additional 68 shares in the last quarter. Johnson Financial Group Inc. boosted its stake in shares of Constellation Brands by 24.9% in the 4th quarter. Johnson Financial Group Inc. now owns 346 shares of the company's stock valued at $48,000 after purchasing an additional 69 shares in the last quarter. Finally, HB Wealth Management LLC grew its holdings in shares of Constellation Brands by 0.7% in the 1st quarter. HB Wealth Management LLC now owns 10,795 shares of the company's stock worth $1,619,000 after purchasing an additional 72 shares during the last quarter. 77.34% of the stock is owned by institutional investors and hedge funds.

About Constellation Brands

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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