Constellation Brands (NYSE:STZ) Cut to Strong Sell at BNP Paribas

Key Points

• BNP Paribas has downgraded Constellation Brands from a "hold" rating to a "strong sell" rating, signaling a negative outlook for the stock.
• Despite the downgrade, UBS Group raised their price target for Constellation Brands from $195.00 to $205.00 and maintained a "buy" rating, reflecting mixed analyst sentiments.
• Constellation Brands reported a miss on earnings estimates with a 12-month revenue decline of 5.5%, prompting changes in price targets by several analysts.

BNP Paribas downgraded shares of Constellation Brands (NYSE:STZ - Free Report) from a hold rating to a strong sell rating in a report released on Wednesday morning,Zacks.com reports.

Other equities research analysts have also issued research reports about the stock. Barclays set a $202.00 price objective on shares of Constellation Brands and gave the company an "overweight" rating in a research note on Thursday, June 26th. Wall Street Zen raised shares of Constellation Brands from a "sell" rating to a "hold" rating in a research note on Tuesday, May 20th. Truist Financial raised shares of Constellation Brands from a "hold" rating to a "buy" rating and lifted their price objective for the company from $190.00 to $215.00 in a research note on Wednesday, May 7th. JPMorgan Chase & Co. lifted their price objective on shares of Constellation Brands from $170.00 to $182.00 and gave the company a "neutral" rating in a research note on Thursday, July 3rd. Finally, UBS Group lifted their price objective on shares of Constellation Brands from $195.00 to $205.00 and gave the company a "buy" rating in a research note on Thursday, July 3rd. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, Constellation Brands has a consensus rating of "Moderate Buy" and an average target price of $194.36.

Constellation Brands Trading Up 1.7%

Constellation Brands stock traded up $2.50 during midday trading on Wednesday, reaching $148.38. The stock had a trading volume of 3,045,709 shares, compared to its average volume of 2,209,589. The firm's fifty day simple moving average is $167.18 and its two-hundred day simple moving average is $175.24. Constellation Brands has a twelve month low of $144.81 and a twelve month 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 firm has a market cap of $26.16 billion, a price-to-earnings ratio of -62.08, a PEG ratio of 0.45 and a beta of 0.67.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its earnings results on Tuesday, July 1st. The company reported $3.22 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.45 by ($0.23). The company had revenue of $2.52 billion for 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%. The company's quarterly revenue was down 5.5% on a year-over-year basis. During the same period last year, the business earned $3.57 EPS. Constellation Brands has set its FY 2026 guidance at 12.600-12.900 EPS. Equities analysts anticipate that Constellation Brands will post 13.5 EPS for the current fiscal year.

Constellation Brands Announces Dividend

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

Insider Activity

In other news, EVP James O. Bourdeau sold 821 shares of the business's stock in a transaction dated Monday, July 21st. The shares were 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 in the company, valued at approximately $1,595,022. The trade was a 8.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 12.45% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Minot DeBlois Advisors LLC bought a new stake in Constellation Brands in the fourth quarter valued at about $29,000. Laurel Wealth Advisors LLC bought a new stake in Constellation Brands in the first quarter valued at about $32,000. Rakuten Securities Inc. grew its stake 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 buying an additional 161 shares during the last quarter. Zions Bancorporation National Association UT bought a new stake in Constellation Brands during the first quarter worth about $38,000. Finally, Flaharty Asset Management LLC bought a new stake in Constellation Brands during the first quarter worth about $39,000. Institutional investors own 77.34% of the company's stock.

About Constellation Brands

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.