Constellation Brands Inc (NYSE:STZ) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts recommend a "Moderate Buy" for Constellation Brands, with an average price target of $194.36.
• Constellation Brands reported earnings of $3.22 per share, missing estimates and showing a 5.5% decline in revenue year-over-year.
• The company recently declared a quarterly dividend of $1.02, resulting in a yield of 2.7%, with a current payout ratio of -170.71%.

Shares of Constellation Brands Inc (NYSE:STZ - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the twenty-six research firms that are currently covering the firm, Marketbeat reports. Three investment analysts have rated the stock with a sell recommendation, eight have assigned a hold recommendation, fourteen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $194.36.

A number of equities analysts recently commented on the company. Piper Sandler increased their price objective on Constellation Brands from $165.00 to $170.00 and gave the stock a "neutral" rating in a report on Friday, June 6th. Cowen restated a "hold" rating on shares of Constellation Brands in a report on Monday, July 7th. TD Cowen dropped their price objective on Constellation Brands from $180.00 to $152.00 and set a "hold" rating on the stock in a report on Thursday. UBS Group increased their price objective on Constellation Brands from $195.00 to $205.00 and gave the stock a "buy" rating in a report on Thursday, July 3rd. Finally, BNP Paribas downgraded Constellation Brands from a "hold" rating to a "strong sell" rating in a report on Wednesday, September 3rd.

Constellation Brands Price Performance

Shares of STZ opened at $148.38 on Monday. The company has a market capitalization of $26.16 billion, a price-to-earnings ratio of -62.08, a P/E/G ratio of 0.45 and a beta of 0.67. Constellation Brands has a fifty-two week low of $144.81 and a fifty-two week high of $261.06. The company has a debt-to-equity ratio of 1.30, a current ratio of 1.07 and a quick ratio of 0.68. The business's 50-day moving average is $167.18 and its 200-day moving average is $175.28.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its earnings results on Tuesday, July 1st. The company reported $3.22 earnings per share for the quarter, missing analysts' consensus estimates of $3.45 by ($0.23). The business had revenue of $2.52 billion during the quarter, compared to analyst estimates of $2.57 billion. Constellation Brands had a negative net margin of 4.11% and a positive return on equity of 31.41%. Constellation Brands's revenue for the quarter was down 5.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.57 EPS. Constellation Brands has set its FY 2026 guidance at 12.600-12.900 EPS. Equities research analysts expect that Constellation Brands will post 13.5 EPS for the current fiscal year.

Constellation Brands Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 14th. Investors of record on Wednesday, July 30th were issued a $1.02 dividend. The ex-dividend date was Wednesday, July 30th. This represents a $4.08 dividend on an annualized basis and a yield of 2.7%. Constellation Brands's dividend payout ratio is currently -170.71%.

Insider Buying and Selling

In other Constellation Brands news, EVP James O. Bourdeau sold 821 shares of the company's stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $169.00, for a total transaction of $138,749.00. Following the completion of the sale, the executive vice president owned 9,438 shares of the company's stock, valued at $1,595,022. This represents a 8.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 12.45% of the company's stock.

Institutional Investors Weigh In On Constellation Brands

A number of large investors have recently added to or reduced their stakes in STZ. Minot DeBlois Advisors LLC bought a new stake in Constellation Brands during the fourth quarter worth approximately $29,000. Laurel Wealth Advisors LLC bought a new stake in Constellation Brands during the first quarter worth approximately $32,000. Rakuten Securities Inc. boosted its position in Constellation Brands by 805.0% during the first quarter. Rakuten Securities Inc. now owns 181 shares of the company's stock worth $33,000 after purchasing an additional 161 shares during the period. Zions Bancorporation National Association UT bought a new stake in Constellation Brands during the first quarter worth approximately $38,000. Finally, Flaharty Asset Management LLC bought a new stake in Constellation Brands during the first quarter worth approximately $39,000. Institutional investors own 77.34% of the company's stock.

Constellation Brands Company Profile

Constellation Brands, Inc, together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands.

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