Constellation Brands Inc (NYSE:STZ) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts have given Constellation Brands Inc a consensus recommendation of "Hold," with four analysts rating it as a sell and one as a strong buy.
• The company reported a revenue decline of 5.5% year-over-year and earnings per share that missed expectations by $0.23 in its latest quarterly results.
• Constellation Brands will pay a quarterly dividend of $1.02 per share on November 13th, representing an annualized dividend yield of 2.9%.

Constellation Brands Inc (NYSE:STZ - Get Free Report) has been assigned a consensus recommendation of "Hold" from the twenty-seven analysts that are presently covering the firm, Marketbeat reports. Four equities research analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation, thirteen have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $190.16.

STZ has been the topic of a number of research reports. Wells Fargo & Company dropped their price objective on Constellation Brands from $170.00 to $155.00 and set an "overweight" rating on the stock in a report on Thursday, September 25th. BMO Capital Markets dropped their price objective on Constellation Brands from $215.00 to $190.00 and set an "outperform" rating on the stock in a report on Thursday, September 4th. BNP Paribas downgraded Constellation Brands from a "hold" rating to a "strong sell" rating in a report on Wednesday, September 3rd. Sanford C. Bernstein dropped their price objective on Constellation Brands from $225.00 to $195.00 and set an "outperform" rating on the stock in a report on Thursday, September 4th. Finally, Raymond James Financial upgraded Constellation Brands to a "strong-buy" rating in a report on Monday, July 7th.

Constellation Brands Stock Up 1.1%

Shares of Constellation Brands stock opened at $140.51 on Friday. The stock has a 50-day moving average price of $154.39 and a 200 day moving average price of $169.74. The company has a market cap of $24.77 billion, a P/E ratio of -58.79, a P/E/G ratio of 0.42 and a beta of 1.75. The company has a current ratio of 1.07, a quick ratio of 0.68 and a debt-to-equity ratio of 1.30. Constellation Brands has a 1 year low of $131.20 and a 1 year high of $254.88.

Constellation Brands (NYSE:STZ - Get Free Report) last posted its quarterly 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 firm had revenue of $2.52 billion for the quarter, compared to analysts' expectations of $2.57 billion. Constellation Brands had a positive return on equity of 31.41% and a negative net margin of 4.11%.The firm's revenue for the quarter was down 5.5% on a year-over-year basis. During the same period last year, the business earned $3.57 earnings per share. As a group, analysts expect that Constellation Brands will post 13.5 EPS for the current fiscal year.

Constellation Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 13th. Stockholders of record on Thursday, October 30th will be issued a dividend of $1.02 per share. The ex-dividend date of this dividend is Thursday, October 30th. This represents a $4.08 dividend on an annualized basis and a dividend yield of 2.9%. Constellation Brands's dividend payout ratio is currently -170.71%.

Insider Activity at Constellation Brands

In other news, EVP James O. Bourdeau sold 821 shares of the stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $169.00, for a total transaction of $138,749.00. Following the transaction, the executive vice president owned 9,438 shares of the company's stock, valued at approximately $1,595,022. This represents a 8.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 12.45% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Laurel Wealth Advisors LLC acquired a new stake in Constellation Brands in the 1st quarter valued at approximately $32,000. Rakuten Securities Inc. grew its holdings in Constellation Brands by 805.0% in the 1st quarter. Rakuten Securities Inc. now owns 181 shares of the company's stock valued at $33,000 after buying an additional 161 shares during the last quarter. Zions Bancorporation National Association UT acquired a new stake in Constellation Brands in the 1st quarter valued at approximately $38,000. Flaharty Asset Management LLC acquired a new stake in Constellation Brands in the 1st quarter valued at approximately $39,000. Finally, Hoey Investments Inc. acquired a new stake in Constellation Brands in the 2nd quarter valued at approximately $40,000. Institutional investors and hedge funds 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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