Constellation Brands (NYSE:STZ) Cut to Underperform at BNP Paribas Exane

Key Points

• BNP Paribas Exane downgraded Constellation Brands (NYSE:STZ) from a "neutral" rating to an "underperform" rating, setting a target price of $123.00, indicating a 17.89% potential downside from its previous close.
• The stock has recently seen a 1.0% decline, trading at $149.80, with analysts maintaining an average price target of $205.25 despite varying opinions from other research firms.
• Constellation Brands reported earnings of $3.22 EPS for the last quarter, missing expectations and reflecting a 5.5% revenue decline compared to the previous year.

Constellation Brands (NYSE:STZ - Get Free Report) was downgraded by investment analysts at BNP Paribas Exane from a "neutral" rating to an "underperform" rating in a research note issued to investors on Wednesday,Briefing.com Automated Import reports. They currently have a $123.00 target price on the stock. BNP Paribas Exane's target price points to a potential downside of 17.89% from the company's previous close.

STZ has been the subject of a number of other research reports. Raymond James Financial raised shares of Constellation Brands to a "strong-buy" rating in a report on Monday, July 7th. CJS Securities reduced their target price on shares of Constellation Brands from $196.00 to $194.00 in a research note on Monday, May 19th. Citigroup reissued a "negative" rating on shares of Constellation Brands in a research report on Monday, August 25th. Bank of America cut shares of Constellation Brands from a "neutral" rating to an "underperform" rating and set a $150.00 target price on the stock. in a report on Tuesday, August 26th. Finally, Cowen reissued a "hold" rating on shares of Constellation Brands in a report on Monday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, Constellation Brands currently has an average rating of "Hold" and an average price target of $205.25.

Constellation Brands Stock Down 1.0%

Constellation Brands stock traded down $1.46 during mid-day trading on Wednesday, hitting $149.80. 316,201 shares of the company's stock were exchanged, compared to its average volume of 2,397,164. The company has a current ratio of 1.07, a quick ratio of 0.68 and a debt-to-equity ratio of 1.30. The stock has a market cap of $26.41 billion, a P/E ratio of -62.63, a P/E/G ratio of 0.44 and a beta of 0.67. Constellation Brands has a 1-year low of $149.15 and a 1-year high of $261.06. The stock has a 50 day moving average of $168.04 and a two-hundred day moving average of $175.70.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its quarterly earnings results on Tuesday, July 1st. The company reported $3.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.45 by ($0.23). Constellation Brands had a negative net margin of 4.11% and a positive return on equity of 31.41%. The business had revenue of $2.52 billion during the quarter, compared to analyst estimates of $2.57 billion. During the same period in the prior year, the business posted $3.57 earnings per share. The company's revenue for the quarter was down 5.5% compared to the same quarter last year. Constellation Brands has set its FY 2026 guidance at 12.600-12.900 EPS. As a group, analysts anticipate that Constellation Brands will post 13.5 EPS for the current fiscal year.

Insider Transactions at Constellation Brands

In other Constellation Brands news, EVP James O. Bourdeau sold 821 shares of the business's stock in a transaction on Monday, July 21st. The shares were sold at an average price of $169.00, for a total value of $138,749.00. Following the completion of the transaction, the executive vice president owned 9,438 shares in the company, valued at $1,595,022. The trade was a 8.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 12.45% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Constellation Brands

A number of institutional investors and hedge funds have recently modified their holdings of STZ. Vanguard Group Inc. lifted its position in Constellation Brands by 18.6% in the first quarter. Vanguard Group Inc. now owns 18,417,604 shares of the company's stock valued at $3,379,999,000 after acquiring an additional 2,882,817 shares during the last quarter. Berkshire Hathaway Inc lifted its position in shares of Constellation Brands by 11.6% during the 2nd quarter. Berkshire Hathaway Inc now owns 13,400,000 shares of the company's stock valued at $2,179,912,000 after acquiring an additional 1,391,000 shares during the period. Wellington Management Group LLP increased its stake in shares of Constellation Brands by 127.9% during the 1st quarter. Wellington Management Group LLP now owns 4,480,788 shares of the company's stock worth $822,314,000 after purchasing an additional 2,514,517 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Constellation Brands by 13.6% during the 2nd quarter. Geode Capital Management LLC now owns 3,737,860 shares of the company's stock worth $605,293,000 after purchasing an additional 448,259 shares in the last quarter. Finally, Grantham Mayo Van Otterloo & Co. LLC grew its stake in Constellation Brands by 39.6% in the 2nd quarter. Grantham Mayo Van Otterloo & Co. LLC now owns 3,675,855 shares of the company's stock worth $597,988,000 after acquiring an additional 1,042,904 shares during the period. Institutional investors and hedge funds 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.

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