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

Key Points

• Analysts' consensus: Constellation Brands holds a "Moderate Buy" consensus from 23 analysts (2 sell, 7 hold, 13 buy, 1 strong buy) with an average 12‑month price target of $178.14.
• Quarterly results: The company beat estimates with EPS of $1.90 vs. $1.71 and revenue of $1.92B vs. $1.84B, despite revenue falling 11.3% year‑over‑year.
• Dividend raised: Constellation increased its quarterly dividend to $1.03 (annualized $4.12) implying a ~2.6% yield, ex‑dividend on April 29.

Constellation Brands Inc (NYSE:STZ - Get Free Report) has been assigned an average rating of "Moderate Buy" from the twenty-three ratings firms that are covering the stock, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation, thirteen have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price target among brokers that have covered the stock in the last year is $178.1429.

STZ has been the subject of several research analyst reports. Evercore set a $175.00 price target on shares of Constellation Brands and gave the stock an "outperform" rating in a research note on Friday, April 10th. JPMorgan Chase & Co. raised their price target on shares of Constellation Brands from $155.00 to $163.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 1st. TD Cowen upgraded shares of Constellation Brands from a "hold" rating to a "buy" rating and raised their price target for the stock from $142.00 to $190.00 in a research note on Monday, April 13th. Piper Sandler raised their price target on shares of Constellation Brands from $146.00 to $160.00 and gave the stock a "neutral" rating in a research note on Friday, April 10th. Finally, Barclays raised their price target on shares of Constellation Brands from $151.00 to $170.00 and gave the stock an "equal weight" rating in a research note on Friday, April 10th.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. MV Capital Management Inc. purchased a new position in Constellation Brands in the 4th quarter valued at approximately $26,000. Root Financial Partners LLC purchased a new position in Constellation Brands in the 3rd quarter valued at approximately $26,000. Stance Capital LLC purchased a new position in Constellation Brands in the 3rd quarter valued at approximately $26,000. Strive Financial Group LLC purchased a new position in Constellation Brands in the 4th quarter valued at approximately $27,000. Finally, GoalVest Advisory LLC purchased a new position in Constellation Brands in the 4th quarter valued at approximately $28,000. 77.34% of the stock is currently owned by hedge funds and other institutional investors.

Constellation Brands Trading Down 1.5%

Shares of STZ stock opened at $159.79 on Tuesday. The company has a 50 day moving average of $154.79 and a 200-day moving average of $146.94. The company has a quick ratio of 0.55, a current ratio of 1.08 and a debt-to-equity ratio of 1.16. Constellation Brands has a 12-month low of $126.45 and a 12-month high of $196.91. The firm has a market cap of $27.71 billion, a P/E ratio of 16.66, a PEG ratio of 3.55 and a beta of 0.44.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its quarterly earnings results on Wednesday, April 8th. The company reported $1.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.71 by $0.19. Constellation Brands had a net margin of 17.29% and a return on equity of 26.18%. The company had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.84 billion. During the same quarter last year, the business posted $2.63 EPS. Constellation Brands's quarterly revenue was down 11.3% compared to the same quarter last year. Sell-side analysts anticipate that Constellation Brands will post 11.94 earnings per share for the current year.

Constellation Brands Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 14th. Investors of record on Wednesday, April 29th will be paid a $1.03 dividend. The ex-dividend date is Wednesday, April 29th. This represents a $4.12 dividend on an annualized basis and a yield of 2.6%. This is a positive change from Constellation Brands's previous quarterly dividend of $1.02. Constellation Brands's dividend payout ratio (DPR) is presently 42.54%.

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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