Constellation Brands (NYSE:STZ) Hits New 12-Month Low After Analyst Downgrade

Key Points

• Constellation Brands shares dropped to a new 12-month low, trading as low as $131.60 after Citigroup downgraded its price target from $155.00 to $145.00.
• Several analysts have reduced their price targets for Constellation Brands, with notable decreases from Morgan Stanley and Deutsche Bank, reflecting a cautious outlook on the stock.
• Despite recent struggles, the company declared a quarterly dividend of $1.02 per share, which reflects a 3.1% yield, although its payout ratio is -170.71%.

Constellation Brands Inc (NYSE:STZ - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday after Citigroup lowered their price target on the stock from $155.00 to $145.00. Citigroup currently has a neutral rating on the stock. Constellation Brands traded as low as $131.60 and last traded at $131.96, with a volume of 610197 shares changing hands. The stock had previously closed at $133.48.

Several other equities analysts have also commented on the company. Morgan Stanley dropped their target price on Constellation Brands from $195.00 to $176.00 and set an "equal weight" rating on the stock in a report on Wednesday, September 3rd. Deutsche Bank Aktiengesellschaft dropped their target price on Constellation Brands from $182.00 to $158.00 and set a "hold" rating on the stock in a report on Wednesday, September 3rd. Bank of America dropped their target price on Constellation Brands from $150.00 to $142.00 and set an "underperform" rating on the stock in a report on Wednesday, September 3rd. Zacks Research downgraded shares of Constellation Brands from a "hold" rating to a "strong sell" rating in a research note on Tuesday, September 9th. Finally, TD Cowen decreased their price objective on shares of Constellation Brands from $180.00 to $152.00 and set a "hold" rating for the company in a research note on Thursday, September 4th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, Constellation Brands presently has a consensus rating of "Hold" and a consensus price target of $191.88.

Insider Buying and Selling at Constellation Brands

In other Constellation Brands news, EVP James O. Bourdeau sold 821 shares of Constellation Brands 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 transaction, the executive vice president owned 9,438 shares in the company, valued at $1,595,022. This trade represents a 8.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 12.45% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Constellation Brands

Hedge funds and other institutional investors have recently made changes to their positions in the business. Arlington Partners LLC acquired a new position in Constellation Brands in the 2nd quarter worth $2,333,000. Wesbanco Bank Inc. lifted its holdings in Constellation Brands by 10.7% in the 2nd quarter. Wesbanco Bank Inc. now owns 43,329 shares of the company's stock worth $7,049,000 after buying an additional 4,204 shares in the last quarter. Harbor Capital Advisors Inc. lifted its holdings in Constellation Brands by 36.4% in the 1st quarter. Harbor Capital Advisors Inc. now owns 3,051 shares of the company's stock worth $560,000 after buying an additional 815 shares in the last quarter. Glenview Trust co lifted its holdings in Constellation Brands by 6.8% in the 1st quarter. Glenview Trust co now owns 69,427 shares of the company's stock worth $12,741,000 after buying an additional 4,421 shares in the last quarter. Finally, Confluence Investment Management LLC lifted its holdings in Constellation Brands by 1.5% in the 2nd quarter. Confluence Investment Management LLC now owns 143,508 shares of the company's stock worth $23,346,000 after buying an additional 2,135 shares in the last quarter. Institutional investors and hedge funds own 77.34% of the company's stock.

Constellation Brands Price Performance

The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.68 and a current ratio of 1.07. The stock has a market cap of $23.21 billion, a price-to-earnings ratio of -54.99, a price-to-earnings-growth ratio of 0.40 and a beta of 0.67. The business's fifty day simple moving average is $160.22 and its 200 day simple moving average is $172.28.

Constellation Brands (NYSE:STZ - Get Free Report) last released 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). Constellation Brands had a positive return on equity of 31.41% and a negative net margin of 4.11%.The company had revenue of $2.52 billion during the quarter, compared to the consensus estimate of $2.57 billion. During the same period in the previous year, the firm posted $3.57 EPS. Constellation Brands's revenue for the quarter was down 5.5% on a year-over-year basis. Constellation Brands has set its FY 2026 guidance at 12.600-12.900 EPS. Research analysts predict that Constellation Brands Inc will post 13.5 EPS for the current fiscal year.

Constellation Brands Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 14th. Stockholders of record on Wednesday, July 30th were paid a dividend of $1.02 per share. The ex-dividend date was Wednesday, July 30th. This represents a $4.08 annualized dividend and a dividend yield of 3.1%. Constellation Brands's dividend payout ratio is -170.71%.

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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