Constellation Brands (NYSE:STZ) Earns "Neutral" Rating from Piper Sandler

Key Points

• Piper Sandler reaffirmed its Neutral rating on Constellation Brands and kept a $160 price target, implying about 18.6% upside from the stock’s current level.
• Other analysts remain mixed, but the overall consensus is still Moderate Buy with an average target price of $171.37. Recent notes included higher targets from BMO and Barclays, while Wells Fargo and UBS trimmed their targets.
• Constellation Brands shares fell about 3% even after the company beat quarterly earnings and revenue estimates. The company also raised its FY2027 EPS guidance to $11.20-$11.90, though revenue was still down year over year.

Constellation Brands (NYSE:STZ - Get Free Report)'s stock had its "neutral" rating reissued by Piper Sandler in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $160.00 price objective on the stock. Piper Sandler's target price indicates a potential upside of 18.63% from the stock's current price.

A number of other research firms also recently commented on STZ. BMO Capital Markets set a $174.00 price objective on shares of Constellation Brands in a research note on Wednesday. Wells Fargo & Company dropped their target price on Constellation Brands from $185.00 to $170.00 and set an "overweight" rating on the stock in a report on Monday. Barclays increased their price target on Constellation Brands from $151.00 to $170.00 and gave the company an "equal weight" rating in a research report on Friday, April 10th. TD Cowen reaffirmed a "buy" rating on shares of Constellation Brands in a research report on Wednesday. Finally, UBS Group dropped their price objective on Constellation Brands from $186.00 to $175.00 and set a "buy" rating on the stock in a research note on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Constellation Brands has a consensus rating of "Moderate Buy" and a consensus target price of $171.37.

Constellation Brands Stock Down 3.0%

Constellation Brands stock traded down $4.22 during midday trading on Wednesday, reaching $134.87. The stock had a trading volume of 2,369,309 shares, compared to its average volume of 2,295,785. The stock has a market capitalization of $23.22 billion, a P/E ratio of 14.04, a price-to-earnings-growth ratio of 4.12 and a beta of 0.39. The firm's fifty day simple moving average is $145.94 and its 200-day simple moving average is $150.26. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.55 and a current ratio of 1.08. Constellation Brands has a 1-year low of $126.45 and a 1-year high of $178.13.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share for the quarter, topping the consensus estimate of $3.20 by $0.23. The company had revenue of $2.43 billion during the quarter, compared to analysts' expectations of $2.39 billion. Constellation Brands had a net margin of 17.29% and a return on equity of 26.18%. The business's quarterly revenue was down 3.3% on a year-over-year basis. During the same period last year, the business earned $3.22 EPS. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, analysts expect that Constellation Brands will post 11.78 EPS for the current fiscal year.

Insiders Place Their Bets

In other Constellation Brands news, EVP James O. Bourdeau sold 4,407 shares of Constellation Brands stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $143.24, for a total transaction of $631,258.68. Following the completion of the transaction, the executive vice president directly owned 9,109 shares of the company's stock, valued at $1,304,773.16. The trade was a 32.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 12.20% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. MV Capital Management Inc. acquired a new position in shares of Constellation Brands in the fourth quarter valued at approximately $26,000. Stance Capital LLC bought a new stake in Constellation Brands in the 3rd quarter valued at $26,000. Strive Financial Group LLC acquired a new position in Constellation Brands in the 4th quarter valued at $27,000. GoalVest Advisory LLC bought a new position in Constellation Brands during the 4th quarter worth $28,000. Finally, Elyxium Wealth LLC acquired a new stake in shares of Constellation Brands during the fourth quarter worth $33,000. 77.34% of the stock is owned by institutional investors.

Key Constellation Brands News

Here are the key news stories impacting Constellation Brands this week:

• Positive Sentiment: Constellation Brands topped Q1 earnings expectations, reporting adjusted EPS of $3.43 versus estimates around $3.20-$3.25, which signaled stronger-than-expected profitability. Reuters article
• Positive Sentiment: Revenue also came in slightly ahead of Wall Street forecasts at $2.43 billion, with beer strength and pricing helping offset weaker sales elsewhere. Zacks article
• Positive Sentiment: Management raised FY2027 EPS guidance to a range of $11.20 to $11.90, suggesting confidence in earnings power despite a tougher demand backdrop. Benzinga article
• Neutral Sentiment: The company declared a quarterly dividend of $1.03 per share, reinforcing its shareholder return profile. Seeking Alpha article
• Negative Sentiment: Revenue fell 3.3% year over year, and management cited softer volume trends and broader consumer weakness, raising questions about how durable beer demand will be. WSJ article
• Negative Sentiment: Investors are also weighing continued margin pressure from inflation and higher gas prices, which could limit near-term upside even after the earnings beat. Seeking Alpha article

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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