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

Key Points

• Analysts have a consensus “Hold” rating on Constellation Brands, with 11 buys, nine holds and two sells among 22 brokers. The average 12-month price target is $167.53 versus the stock’s reported price of $135.42.
• Constellation Brands missed quarterly earnings expectations, reporting $3.43 in EPS versus the $3.70 consensus, while revenue of $2.43 billion exceeded estimates but declined 3.3% year over year.
• Institutional investors own 77.34% of the company, and Constellation recently paid a quarterly dividend of $1.03 per share, equating to a 3.0% annualized yield.

Shares of Constellation Brands Inc (NYSE:STZ - Get Free Report) have been assigned a consensus recommendation of "Hold" from the twenty-two brokerages that are presently covering the company, Marketbeat reports. Two analysts have rated the stock with a sell rating, nine have given a hold rating and eleven have issued a buy rating on the company. The average 12 month price objective among brokers that have covered the stock in the last year is $167.5263.

STZ has been the subject of a number of recent research reports. Needham & Company LLC reiterated a "buy" rating and set a $185.00 price objective on shares of Constellation Brands in a research report on Thursday, July 2nd. JPMorgan Chase & Co. reduced their target price on shares of Constellation Brands from $169.00 to $165.00 and set a "neutral" rating on the stock in a report on Thursday, July 2nd. Piper Sandler restated a "neutral" rating and issued a $160.00 target price on shares of Constellation Brands in a report on Wednesday, July 1st. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Constellation Brands in a research note on Friday, July 31st. Finally, TD Cowen reiterated a "buy" rating and set a $174.00 price target on shares of Constellation Brands in a report on Wednesday, July 1st.

Institutional Trading of Constellation Brands

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in Constellation Brands during the second quarter worth approximately $31,582,000. Swiss Life Asset Management Ltd raised its stake in shares of Constellation Brands by 99.1% in the 4th 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. Swedbank AB raised its stake in shares of Constellation Brands by 108.1% in the 4th 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 during the period. OLD Republic International Corp lifted its holdings in shares of Constellation Brands by 76.7% during the 4th 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 in the last quarter. Finally, Jefferies Financial Group Inc. acquired a new position in shares of Constellation Brands during the 4th quarter valued at $14,639,000. 77.34% of the stock is owned by hedge funds and other institutional investors.

Constellation Brands Price Performance

Shares of NYSE:STZ opened at $135.42 on Monday. The business's fifty day moving average price is $135.20 and its two-hundred day moving average price is $146.10. The stock has a market cap of $23.13 billion, a PE ratio of 12.92, a price-to-earnings-growth ratio of 4.22 and a beta of 0.40. 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 one year low of $126.45 and a one year high of $168.60.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share for the quarter, missing the consensus estimate of $3.70 by ($0.27). Constellation Brands had a return on equity of 25.58% and a net margin of 18.87%.The company had revenue of $2.43 billion for the quarter, compared to analysts' expectations of $2.39 billion. During the same period in the previous year, the business posted $3.22 EPS. The business'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. On average, analysts forecast that Constellation Brands will post 11.84 EPS for the current fiscal year.

Constellation Brands Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 13th. Investors of record on Thursday, July 30th were paid a dividend of $1.03 per share. The ex-dividend date of this dividend was Thursday, July 30th. This represents a $4.12 annualized dividend and a dividend yield of 3.0%. Constellation Brands's dividend payout ratio is presently 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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