Constellation Brands (NYSE:STZ) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Constellation Brands has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating, indicating a negative outlook for the stock.
• Multiple analysts have reduced their price targets for Constellation Brands, with new targets ranging from $142 to $196, reflecting concerns over the company's recent performance.
• In its latest earnings report, Constellation Brands missed analysts' expectations, posting a revenue decline of 5.5% year-over-year and an EPS of $3.22, below the expected $3.45.

Constellation Brands (NYSE:STZ - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Tuesday,Zacks.com reports.

Other analysts also recently issued reports about the company. Citigroup cut their target price on Constellation Brands from $174.00 to $155.00 and set a "neutral" rating on the stock in a research note on Thursday, September 4th. BMO Capital Markets dropped their price target on Constellation Brands from $215.00 to $190.00 and set an "outperform" rating on the stock in a research note on Thursday, September 4th. Sanford C. Bernstein dropped their price target on Constellation Brands from $225.00 to $195.00 and set an "outperform" rating on the stock in a research note on Thursday, September 4th. Bank of America dropped their price target on Constellation Brands from $150.00 to $142.00 and set an "underperform" rating on the stock in a research note on Wednesday, September 3rd. Finally, The Goldman Sachs Group dropped their price target on Constellation Brands from $225.00 to $196.00 and set a "buy" rating on the stock in a research note on Tuesday, September 2nd. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eight have issued a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $194.36.

Constellation Brands Stock Performance

Shares of STZ opened at $143.00 on Tuesday. The business's fifty day simple moving average is $165.82 and its two-hundred day simple moving average is $174.65. The company has a current ratio of 1.07, a quick ratio of 0.68 and a debt-to-equity ratio of 1.30. Constellation Brands has a 12 month low of $142.51 and a 12 month high of $261.06. The company has a market cap of $25.21 billion, a price-to-earnings ratio of -59.83, a P/E/G ratio of 0.44 and a beta of 0.67.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its earnings results on Tuesday, July 1st. The company reported $3.22 EPS for the quarter, missing the consensus estimate of $3.45 by ($0.23). Constellation Brands had a negative net margin of 4.11% and a positive return on equity of 31.41%. The business had revenue of $2.52 billion for the quarter, compared to analysts' expectations of $2.57 billion. During the same quarter in the prior year, the business posted $3.57 earnings per share. The business'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 anticipate that Constellation Brands will post 13.5 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP James O. Bourdeau sold 821 shares of the firm's stock in a transaction on Monday, July 21st. The stock was sold at an average price of $169.00, for a total value of $138,749.00. Following the transaction, the executive vice president directly owned 9,438 shares of the company's stock, valued at approximately $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 can be accessed through this link. Corporate insiders own 12.45% of the company's stock.

Hedge Funds Weigh In On Constellation Brands

A number of institutional investors have recently bought and sold shares of the stock. Gilbert & Cook Inc. raised its holdings in Constellation Brands by 2.6% in the 2nd quarter. Gilbert & Cook Inc. now owns 2,385 shares of the company's stock worth $388,000 after purchasing an additional 60 shares during the period. Piscataqua Savings Bank raised its holdings in Constellation Brands by 1.7% in the 1st quarter. Piscataqua Savings Bank now owns 3,720 shares of the company's stock worth $683,000 after purchasing an additional 62 shares during the period. Strategic Financial Concepts LLC raised its holdings in Constellation Brands by 5.8% in the 1st quarter. Strategic Financial Concepts LLC now owns 1,128 shares of the company's stock worth $207,000 after purchasing an additional 62 shares during the period. World Investment Advisors raised its holdings in Constellation Brands by 1.7% in the 1st quarter. World Investment Advisors now owns 3,801 shares of the company's stock worth $698,000 after purchasing an additional 62 shares during the period. Finally, V Square Quantitative Management LLC raised its holdings in Constellation Brands by 3.8% in the 2nd quarter. V Square Quantitative Management LLC now owns 1,682 shares of the company's stock worth $274,000 after purchasing an additional 62 shares during the period. 77.34% of the stock is owned by institutional investors.

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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