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

Key Points

• Analysts hold a mixed view: Twenty-two brokerages collectively rate Constellation Brands “Hold,” with 11 buys, 9 holds and 2 sells. The average one-year price target is $167.53, above the stock’s $131.84 opening price.
• Constellation Brands recently reported quarterly EPS of $3.43, missing the $3.70 consensus estimate, while revenue of $2.43 billion exceeded expectations but declined 3.3% year over year.
• The company declared a quarterly dividend of $1.03, equivalent to an annualized $4.12 payout and a 3.1% yield. Institutional investors own 77.34% of the shares, while insiders own 12.20%.

Constellation Brands Inc (NYSE:STZ - Get Free Report) has been given a consensus recommendation of "Hold" by the twenty-two brokerages that are currently covering the stock, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and eleven have assigned a buy rating to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $167.5263.

A number of equities research analysts recently weighed in on STZ shares. TD Cowen restated a "buy" rating and issued a $174.00 price target on shares of Constellation Brands in a research note on Wednesday, July 1st. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $185.00 price objective on shares of Constellation Brands in a research report on Thursday, July 2nd. Roth Capital reiterated a "buy" rating and issued a $209.00 price objective on shares of Constellation Brands in a report on Thursday, July 2nd. JPMorgan Chase & Co. dropped their price objective on shares of Constellation Brands from $169.00 to $165.00 and set a "neutral" rating on the stock in a research report on Thursday, July 2nd. Finally, Deutsche Bank Aktiengesellschaft dropped their price objective on shares of Constellation Brands from $155.00 to $150.00 and set a "hold" rating on the stock in a research report on Thursday, July 2nd.

Insiders Place Their Bets

In other Constellation Brands news, EVP James O. Bourdeau sold 4,407 shares of the stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $143.24, for a total value of $631,258.68. Following the transaction, the executive vice president directly owned 9,109 shares of the company's stock, valued at $1,304,773.16. This represents a 32.61% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 12.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Constellation Brands

A number of institutional investors have recently made changes to their positions in STZ. Hudson Edge Investment Partners Inc. increased its position 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 period. Swiss Life Asset Management Ltd boosted its position in shares of Constellation Brands by 99.1% in the fourth quarter. Swiss Life Asset Management Ltd now owns 38,489 shares of the company's stock valued at $5,310,000 after acquiring an additional 19,161 shares during the period. OLD Republic International Corp boosted its position in shares of Constellation Brands by 76.7% in the fourth quarter. OLD Republic International Corp now owns 193,500 shares of the company's stock valued at $26,695,000 after acquiring an additional 84,000 shares during the period. Swedbank AB grew its stake in shares of Constellation Brands by 108.1% in the fourth quarter. Swedbank AB now owns 63,055 shares of the company's stock valued at $8,699,000 after acquiring an additional 32,757 shares in the last quarter. Finally, Jefferies Financial Group Inc. acquired a new position in shares of Constellation Brands in the fourth quarter valued at about $14,639,000. Institutional investors own 77.34% of the company's stock.

Constellation Brands Trading Down 0.1%

Constellation Brands stock opened at $131.84 on Thursday. The stock has a 50-day simple moving average of $138.44 and a 200 day simple moving average of $149.00. The stock has a market capitalization of $22.52 billion, a P/E ratio of 12.58, a PEG ratio of 4.11 and a beta of 0.39. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.48 and a current ratio of 0.91. Constellation Brands has a 52 week low of $126.45 and a 52 week high of $176.32.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The company reported $3.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.70 by ($0.27). Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The business 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 company earned $3.22 EPS. Constellation Brands's quarterly revenue was down 3.3% on a year-over-year basis. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Analysts expect that Constellation Brands will post 11.84 earnings per share for the current year.

Constellation Brands Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Investors of record on Thursday, July 30th will be paid a $1.03 dividend. The ex-dividend date is Thursday, July 30th. This represents a $4.12 dividend on an annualized basis and a yield of 3.1%. Constellation Brands's dividend payout ratio is 39.31%.

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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