Constellation Brands (NYSE:STZ) Downgraded to "Underperform" Rating by Bank of America

Key Points

• Bank of America has downgraded Constellation Brands from a "neutral" to an "underperform" rating, setting a price target of $150, indicating a potential downside of 8.52% from the current price.
• Constellation Brands recently reported earnings of $3.22 per share, which fell short of the consensus estimate of $3.45, alongside a revenue decline of 5.5% year-over-year.
• Despite the downgrade, several other analysts have raised their target prices for Constellation Brands, with a consensus price target of $212.35 and an average rating of "Moderate Buy."

Constellation Brands (NYSE:STZ - Get Free Report) was downgraded by stock analysts at Bank of America from a "neutral" rating to an "underperform" rating in a note issued to investors on Tuesday,Finviz reports. They presently have a $150.00 price objective on the stock. Bank of America's price target would indicate a potential downside of 8.52% from the company's current price.

Other research analysts also recently issued research reports about the stock. Piper Sandler upped their target price on shares of Constellation Brands from $165.00 to $170.00 and gave the stock a "neutral" rating in a report on Friday, June 6th. UBS Group upped their target price on shares of Constellation Brands from $195.00 to $205.00 and gave the stock a "buy" rating in a report on Thursday, July 3rd. CJS Securities dropped their target price on shares of Constellation Brands from $196.00 to $194.00 in a report on Monday, May 19th. Jefferies Financial Group raised shares of Constellation Brands from a "hold" rating to a "buy" rating and upped their target price for the stock from $194.00 to $205.00 in a report on Monday, July 7th. Finally, Citigroup boosted their price target on shares of Constellation Brands from $170.00 to $174.00 and gave the stock a "neutral" rating in a research note on Thursday, July 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $212.35.

Constellation Brands Trading Down 2.2%

Shares of STZ stock opened at $163.97 on Tuesday. Constellation Brands has a 1 year low of $159.35 and a 1 year high of $261.06. The firm has a fifty day moving average price of $168.38 and a 200-day moving average price of $175.98. 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 company has a market cap of $28.91 billion, a price-to-earnings ratio of -68.61, a PEG ratio of 10.15 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 for the quarter, missing the consensus estimate of $3.45 by ($0.23). The firm had revenue of $2.52 billion during the quarter, compared to the consensus estimate of $2.57 billion. Constellation Brands had a positive return on equity of 31.41% and a negative net margin of 4.11%.The company's quarterly revenue was down 5.5% on a year-over-year basis. During the same period in the prior year, the company posted $3.57 EPS. Constellation Brands has set its FY 2026 guidance at 12.600-12.900 EPS. As a group, equities analysts predict that Constellation Brands will post 13.5 earnings per share for the current year.

Insider Activity

In other news, EVP James O. Bourdeau sold 821 shares of the company'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 sale, the executive vice president directly owned 9,438 shares in the company, valued at approximately $1,595,022. This represents a 8.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 12.45% of the company's stock.

Institutional Trading of Constellation Brands

Several hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. raised its position in shares of Constellation Brands by 18.6% during the 1st quarter. Vanguard Group Inc. now owns 18,417,604 shares of the company's stock valued at $3,379,999,000 after buying an additional 2,882,817 shares in the last quarter. Berkshire Hathaway Inc raised its position in Constellation Brands by 11.6% in the 2nd quarter. Berkshire Hathaway Inc now owns 13,400,000 shares of the company's stock worth $2,179,912,000 after purchasing an additional 1,391,000 shares during the period. Wellington Management Group LLP raised its position in Constellation Brands by 127.9% in 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 during the period. Geode Capital Management LLC raised its position in Constellation Brands by 13.6% in 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 during the period. Finally, Grantham Mayo Van Otterloo & Co. LLC raised its position 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 purchasing an additional 1,042,904 shares during the period. 77.34% of the stock is currently owned by hedge funds and other institutional investors.

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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