Constellation Brands (NYSE:STZ) Given New $169.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan raised its price target on Constellation Brands to $169 from $168 and kept a neutral rating, implying about 17.6% upside from the current share price.
• Wall Street remains mixed on STZ overall: the stock holds an average “Moderate Buy” rating with a consensus target of $173.84, though analysts are split between buys, holds, and sells.
• Constellation Brands recently reported better-than-expected quarterly earnings and revenue, but revenue still declined 11.3% year over year; the stock was trading at $143.71 and remains below its 50-day and 200-day averages.

Constellation Brands (NYSE:STZ - Get Free Report) had its price target hoisted by analysts at JPMorgan Chase & Co. from $168.00 to $169.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 17.60% from the stock's current price.

Other research analysts have also issued reports about the company. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $185.00 target price on shares of Constellation Brands in a report on Friday, April 10th. UBS Group cut their price target on shares of Constellation Brands from $186.00 to $175.00 and set a "buy" rating for the company in a report on Wednesday, June 17th. Jefferies Financial Group reduced their price objective on shares of Constellation Brands from $158.00 to $157.00 and set a "hold" rating for the company in a research report on Tuesday. TD Cowen raised shares of Constellation Brands from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $142.00 to $190.00 in a research note on Monday, April 13th. Finally, Citigroup reiterated a "buy" rating on shares of Constellation Brands in a report on Monday, May 18th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $173.84.

Constellation Brands Price Performance

STZ traded up $0.69 during trading on Thursday, reaching $143.71. The stock had a trading volume of 112,191 shares, compared to its average volume of 2,248,164. The firm has a market capitalization of $24.75 billion, a price-to-earnings ratio of 14.96, a price-to-earnings-growth ratio of 4.21 and a beta of 0.39. 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 1-year low of $126.45 and a 1-year high of $178.13. The stock has a 50 day moving average of $147.64 and a two-hundred day moving average of $150.30.

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, beating analysts' consensus estimates of $1.71 by $0.19. The firm had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.84 billion. Constellation Brands had a return on equity of 26.18% and a net margin of 17.29%.The firm's quarterly revenue was down 11.3% on a year-over-year basis. During the same period last year, the company posted $2.63 EPS. As a group, equities analysts anticipate that Constellation Brands will post 11.84 EPS for the current fiscal year.

Insider Buying and Selling at Constellation Brands

In related news, EVP James O. Bourdeau sold 4,407 shares of Constellation Brands stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total value of $631,258.68. Following the transaction, the executive vice president owned 9,109 shares of the company's stock, valued at approximately $1,304,773.16. This trade represents a 32.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 12.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Capital International Investors raised its holdings in shares of Constellation Brands by 48.5% during the fourth quarter. Capital International Investors now owns 6,442,600 shares of the company's stock valued at $888,930,000 after acquiring an additional 2,105,546 shares during the period. Norges Bank acquired a new position in Constellation Brands during the 4th quarter worth $267,798,000. Ameriprise Financial Inc. boosted its holdings in Constellation Brands by 650.6% during the second quarter. Ameriprise Financial Inc. now owns 1,769,741 shares of the company's stock valued at $287,889,000 after acquiring an additional 1,533,961 shares during the period. Wellington Management Group LLP boosted its holdings in Constellation Brands by 14.0% during the fourth quarter. Wellington Management Group LLP now owns 6,018,653 shares of the company's stock valued at $830,333,000 after acquiring an additional 739,393 shares during the period. Finally, Pzena Investment Management LLC bought a new stake in Constellation Brands during the fourth quarter valued at about $81,381,000. 77.34% of the stock is currently owned by institutional investors and hedge funds.

About Constellation Brands

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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