Constellation Brands (NYSE:STZ) Reaches New 52-Week Low - Should You Sell?

Key Points

• Constellation Brands' stock recently hit a new **52-week low** of $144.58, closing at **$145.10** with substantial trading volume.
• Wall Street ratings for the stock are mixed, with **one strong buy**, **fourteen buy**, **eight hold**, and **three sell** ratings, resulting in a consensus rating of "**Moderate Buy**" and an average price target of **$194.36**.
• The company's recent earnings report showed **$3.22 EPS**, missing estimates by **$0.23**, and a **5.5%** decline in revenue year-over-year, indicating potential challenges ahead.

Constellation Brands Inc (NYSE:STZ - Get Free Report)'s share price reached a new 52-week low on Monday . The company traded as low as $144.58 and last traded at $145.10, with a volume of 662578 shares traded. The stock had previously closed at $148.43.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on STZ. BNP Paribas cut Constellation Brands from a "hold" rating to a "strong sell" rating in a research report on Wednesday, September 3rd. Wall Street Zen raised Constellation Brands from a "sell" rating to a "hold" rating in a report on Tuesday, May 20th. TD Cowen reduced their price target on Constellation Brands from $180.00 to $152.00 and set a "hold" rating for the company in a report on Thursday. Morgan Stanley reduced their price target on Constellation Brands from $195.00 to $176.00 and set an "equal weight" rating for the company in a report on Wednesday, September 3rd. Finally, Wells Fargo & Company reduced their price objective on Constellation Brands from $196.00 to $170.00 and set an "overweight" rating for the company in a report on Wednesday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, Constellation Brands currently has a consensus rating of "Moderate Buy" and an average price target of $194.36.

Constellation Brands Stock Performance

The firm has a market cap of $25.67 billion, a PE ratio of -60.85, a P/E/G ratio of 0.45 and a beta of 0.67. The company has a debt-to-equity ratio of 1.30, a current ratio of 1.07 and a quick ratio of 0.68. The stock has a 50-day moving average price of $167.18 and a 200 day moving average price of $175.28.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its quarterly earnings data on Tuesday, July 1st. The company reported $3.22 EPS for the quarter, missing analysts' consensus estimates of $3.45 by ($0.23). The business had revenue of $2.52 billion during the quarter, compared to analysts' expectations of $2.57 billion. Constellation Brands had a negative net margin of 4.11% and a positive return on equity of 31.41%. Constellation Brands's revenue for the quarter was down 5.5% on a year-over-year basis. During the same period in the prior year, the firm earned $3.57 EPS. Constellation Brands has set its FY 2026 guidance at 12.600-12.900 EPS. Research analysts forecast that Constellation Brands Inc will post 13.5 earnings per share for the current year.

Constellation Brands Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Wednesday, July 30th were given a dividend of $1.02 per share. This represents a $4.08 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Wednesday, July 30th. Constellation Brands's payout ratio is -170.71%.

Insider Activity at Constellation Brands

In other Constellation Brands news, EVP James O. Bourdeau sold 821 shares of the business's stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $169.00, for a total transaction of $138,749.00. Following the transaction, the executive vice president owned 9,438 shares in the company, valued at $1,595,022. The trade was a 8.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 12.45% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of STZ. Vanguard Group Inc. increased its holdings in Constellation Brands by 18.6% in the first quarter. Vanguard Group Inc. now owns 18,417,604 shares of the company's stock valued at $3,379,999,000 after buying an additional 2,882,817 shares during the last quarter. Wellington Management Group LLP increased its holdings in Constellation Brands by 127.9% in the first quarter. Wellington Management Group LLP now owns 4,480,788 shares of the company's stock valued at $822,314,000 after buying an additional 2,514,517 shares during the last quarter. Ameriprise Financial Inc. increased its holdings in Constellation Brands by 650.6% in 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. Norges Bank bought a new stake in Constellation Brands in the second quarter valued at about $239,737,000. Finally, Berkshire Hathaway Inc grew its holdings in shares of Constellation Brands by 11.6% during the second quarter. Berkshire Hathaway Inc now owns 13,400,000 shares of the company's stock valued at $2,179,912,000 after purchasing an additional 1,391,000 shares during the last quarter. Institutional investors and hedge funds own 77.34% of the company's stock.

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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