Constellation Brands (NYSE:STZ) Given New $170.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo cut its price target on Constellation Brands from $185 to $170 but kept an overweight rating, implying about 18.8% upside from the current share price.
• The stock was down 2.2% to $143.09 on Monday, trading well below its 52-week high of $178.13 and near its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed but constructive overall, with a Moderate Buy consensus and average target price of $172.21; the company also recently beat quarterly EPS and revenue estimates despite year-over-year revenue decline.

Constellation Brands (NYSE:STZ - Get Free Report) had its price target dropped by Wells Fargo & Company from $185.00 to $170.00 in a note issued to investors on Monday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Wells Fargo & Company's target price indicates a potential upside of 18.80% from the stock's current price.

Other research analysts have also recently issued research reports about the company. Bank of America dropped their price objective on Constellation Brands from $154.00 to $152.00 and set an "underperform" rating on the stock in a research note on Thursday, May 28th. Weiss Ratings reissued a "hold (c-)" rating on shares of Constellation Brands in a research report on Monday, May 4th. Barclays lifted their price objective on Constellation Brands from $151.00 to $170.00 and gave the company an "equal weight" rating in a report on Friday, April 10th. Jefferies Financial Group lowered their price target 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, June 23rd. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Constellation Brands from $154.00 to $155.00 and gave the stock a "hold" rating in a research note on Friday, April 10th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $172.21.

Constellation Brands Stock Down 2.2%

Shares of STZ opened at $143.09 on Monday. 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 52-week low of $126.45 and a 52-week high of $178.13. The company has a market cap of $24.64 billion, a PE ratio of 14.99, a P/E/G ratio of 4.31 and a beta of 0.39. The business has a fifty day moving average of $146.88 and a 200 day moving average of $150.35.

Constellation Brands (NYSE:STZ - Get Free Report) last released its earnings results on Wednesday, April 8th. The company reported $1.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.71 by $0.19. Constellation Brands had a net margin of 17.29% and a return on equity of 26.18%. The firm had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.84 billion. During the same quarter last year, the business earned $2.63 EPS. The business's revenue was down 11.3% on a year-over-year basis. On average, sell-side analysts expect that Constellation Brands will post 11.77 EPS for the current year.

Insider Buying and Selling at Constellation Brands

In other 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 completion of the transaction, the executive vice president owned 9,109 shares in the company, valued at approximately $1,304,773.16. This trade represents a 32.61% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 12.20% of the company's stock.

Hedge Funds Weigh In On Constellation Brands

Several institutional investors have recently bought and sold shares of STZ. Capital World Investors increased its holdings in shares of Constellation Brands by 8.3% in the 4th quarter. Capital World Investors now owns 7,238,575 shares of the company's stock valued at $998,740,000 after purchasing an additional 553,974 shares in the last quarter. State Street Corp increased its holdings in Constellation Brands by 5.0% during the 4th quarter. State Street Corp now owns 6,911,369 shares of the company's stock valued at $953,492,000 after acquiring an additional 329,337 shares in the last quarter. Capital International Investors increased its holdings in Constellation Brands by 48.5% during the 4th 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 in the last quarter. Wellington Management Group LLP raised its position 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 worth $830,333,000 after acquiring an additional 739,393 shares during the last quarter. Finally, Geode Capital Management LLC raised its position in Constellation Brands by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 3,739,549 shares of the company's stock worth $513,871,000 after acquiring an additional 54,184 shares during the last quarter. 77.34% of the stock is 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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