Constellation Brands Inc (NYSE:STZ) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Constellation Brands has a consensus analyst rating of “Moderate Buy”, based on 22 covering analysts, with an average 1-year price target of about $175.26.
• Several firms recently raised their price targets on the stock, including JPMorgan, Morgan Stanley, Evercore, Needham, and UBS, reflecting generally positive sentiment despite mixed ratings.
• The company beat quarterly earnings and revenue estimates, and it also increased its dividend to $1.03 per share, implying an annualized yield of about 2.9%.

Shares of Constellation Brands Inc (NYSE:STZ - Get Free Report) have received an average rating of "Moderate Buy" from the twenty-two analysts that are currently covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, seven have given a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $175.2632.

A number of equities research analysts have recently weighed in on STZ shares. JPMorgan Chase & Co. lifted their price objective on Constellation Brands from $155.00 to $163.00 and gave the company a "neutral" rating in a research note on Wednesday, April 1st. Morgan Stanley lifted their price objective on Constellation Brands from $160.00 to $183.00 and gave the company an "equal weight" rating in a research note on Friday, April 10th. Evercore set a $175.00 price objective on Constellation Brands and gave the company an "outperform" rating in a research note on Friday, April 10th. Needham & Company LLC lifted their price objective on Constellation Brands from $180.00 to $185.00 and gave the company a "buy" rating in a research note on Friday, April 10th. Finally, UBS Group lifted their price objective on Constellation Brands from $176.00 to $186.00 and gave the company a "buy" rating in a research note on Friday, April 10th.

Constellation Brands Trading Down 0.6%

Shares of NYSE STZ opened at $139.97 on Wednesday. Constellation Brands has a twelve month low of $126.45 and a twelve month high of $178.13. The company has a current ratio of 1.08, a quick ratio of 0.55 and a debt-to-equity ratio of 1.16. The stock has a fifty day simple moving average of $150.27 and a 200-day simple moving average of $149.68. The stock has a market capitalization of $24.10 billion, a PE ratio of 14.60, a PEG ratio of 3.26 and a beta of 0.39.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its quarterly earnings data on Wednesday, April 8th. The company reported $1.90 earnings per share for the quarter, beating analysts' consensus estimates of $1.71 by $0.19. Constellation Brands had a return on equity of 26.18% and a net margin of 17.29%.The business had revenue of $1.92 billion during the quarter, compared to analysts' expectations of $1.84 billion. During the same period in the previous year, the firm posted $2.63 earnings per share. The company's revenue was down 11.3% on a year-over-year basis. On average, equities analysts forecast that Constellation Brands will post 11.87 earnings per share for the current year.

Constellation Brands Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 14th. Stockholders of record on Wednesday, April 29th were paid a $1.03 dividend. The ex-dividend date of this dividend was Wednesday, April 29th. This is a boost from Constellation Brands's previous quarterly dividend of $1.02. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.9%. Constellation Brands's payout ratio is presently 42.96%.

Insider Buying and Selling

In related news, EVP James O. Bourdeau sold 4,407 shares of the business's stock in a transaction 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 completion of the transaction, the executive vice president directly owned 9,109 shares of the company's stock, valued at $1,304,773.16. The trade was a 32.61% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 12.45% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Oppenheimer Asset Management Inc. grew its stake in Constellation Brands by 329.8% during the 3rd quarter. Oppenheimer Asset Management Inc. now owns 73,323 shares of the company's stock worth $9,874,000 after purchasing an additional 56,263 shares in the last quarter. Nordea Investment Management AB grew its stake in Constellation Brands by 6.1% during the 4th quarter. Nordea Investment Management AB now owns 867,776 shares of the company's stock worth $120,300,000 after purchasing an additional 49,625 shares in the last quarter. LSV Asset Management acquired a new position in Constellation Brands during the 3rd quarter worth $33,018,000. Caprock Group LLC purchased a new stake in Constellation Brands during the 3rd quarter worth about $1,451,000. Finally, Hudson Edge Investment Partners Inc. lifted its holdings in Constellation Brands by 36.1% during the 4th quarter. Hudson Edge Investment Partners Inc. now owns 48,062 shares of the company's stock worth $6,631,000 after buying an additional 12,746 shares during the last quarter. 77.34% of the stock is owned by institutional investors and hedge funds.

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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