Constellation Brands (NYSE:STZ) Issues Quarterly Earnings Results

Key Points

• Constellation Brands reported a quarterly earnings per share (EPS) of $3.63, which fell short of analysts' expectations of $4.04, indicating potential challenges in financial performance.
• The company's stock experienced a decline of 2.4%, closing at $138.83, amidst a backdrop of recent downgrades and lowered price targets by several analysts.
• Constellation Brands announced a quarterly dividend of $1.02 per share with an annualized yield of 2.9%, despite a significant negative dividend payout ratio of -170.71%.

Constellation Brands (NYSE:STZ - Get Free Report) issued its quarterly earnings data on Monday. The company reported $3.63 EPS for the quarter, missing the consensus estimate of $4.04 by ($0.41), Zacks reports. Constellation Brands had a negative net margin of 4.11% and a positive return on equity of 31.41%.

Constellation Brands Stock Down 2.4%

Shares of NYSE:STZ traded down $3.37 during trading on Monday, reaching $138.83. 4,147,817 shares of the stock traded hands, compared to its average volume of 2,495,423. The stock has a 50-day moving average of $153.72 and a two-hundred day moving average of $169.35. Constellation Brands has a 52-week low of $131.20 and a 52-week high of $247.63. 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 $24.47 billion, a P/E ratio of -58.09, a price-to-earnings-growth ratio of 0.43 and a beta of 1.75.

Constellation Brands Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 13th. Shareholders of record on Thursday, October 30th will be issued a $1.02 dividend. This represents a $4.08 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Thursday, October 30th. Constellation Brands's dividend payout ratio is -170.71%.

Wall Street Analysts Forecast Growth

STZ has been the subject of several recent analyst reports. Zacks Research downgraded shares of Constellation Brands from a "hold" rating to a "strong sell" rating in a research note on Tuesday, September 9th. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Constellation Brands from $182.00 to $158.00 and set a "hold" rating for the company in a research note on Wednesday, September 3rd. TD Cowen lowered 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. Morgan Stanley decreased their price target on shares of Constellation Brands from $195.00 to $176.00 and set an "equal weight" rating for the company in a research note on Wednesday, September 3rd. Finally, Needham & Company LLC decreased their price target on shares of Constellation Brands from $200.00 to $180.00 and set a "buy" rating for the company in a research note on Wednesday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have issued a Hold rating and five have issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $188.96.

Insider Activity at Constellation Brands

In other news, EVP James O. Bourdeau sold 821 shares of the stock in a transaction that occurred on 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 owned 9,438 shares in the company, valued at $1,595,022. This represents a 8.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 12.45% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Constellation Brands

A number of institutional investors have recently made changes to their positions in the company. Ameriprise Financial Inc. grew its holdings in shares of 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 buying an additional 1,533,961 shares during the last quarter. Worldquant Millennium Advisors LLC grew its holdings in shares of Constellation Brands by 1,249.7% during the second quarter. Worldquant Millennium Advisors LLC now owns 476,702 shares of the company's stock valued at $77,550,000 after buying an additional 441,382 shares during the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new stake in Constellation Brands in the second quarter worth approximately $21,065,000. EP Wealth Advisors LLC boosted its holdings in Constellation Brands by 1,966.8% in the second quarter. EP Wealth Advisors LLC now owns 122,187 shares of the company's stock worth $19,877,000 after purchasing an additional 116,275 shares during the last quarter. Finally, Quantinno Capital Management LP boosted its holdings in Constellation Brands by 594.6% in the second quarter. Quantinno Capital Management LP now owns 92,316 shares of the company's stock worth $15,018,000 after purchasing an additional 79,026 shares during the last quarter. Hedge funds and other institutional investors own 77.34% of the company's stock.

Constellation Brands Company Profile

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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