Constellation Brands (NYSE:STZ) Sets New 1-Year Low - Should You Sell?

Key Points

• Constellation Brands reached a new 52-week low of $138.54, with trading volume of 332,106 shares, indicating significant market movement.
• Despite the stock's decline, analysts hold a mixed outlook, with one strong buy, multiple buy ratings, and a target price average of $192.28.
• The company reported a loss in quarterly earnings, missing consensus estimates with earnings per share of $3.22, while also facing a 5.5% decline in revenue year-over-year.

Constellation Brands Inc (NYSE:STZ - Get Free Report) reached a new 52-week low during trading on Monday . The stock traded as low as $138.79 and last traded at $138.54, with a volume of 332106 shares trading hands. The stock had previously closed at $139.49.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on STZ shares. Raymond James Financial raised Constellation Brands to a "strong-buy" rating in a research note on Monday, July 7th. Wall Street Zen raised Constellation Brands from a "sell" rating to a "hold" rating in a research report on Tuesday, May 20th. Zacks Research downgraded Constellation Brands from a "hold" rating to a "strong sell" rating in a research note on Tuesday, September 9th. BNP Paribas Exane cut Constellation Brands from a "neutral" rating to an "underperform" rating and set a $123.00 price target for the company. in a report on Wednesday, September 3rd. Finally, Wells Fargo & Company cut their price target 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 analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $192.28.

Constellation Brands Stock Performance

The company has a quick ratio of 0.68, a current ratio of 1.07 and a debt-to-equity ratio of 1.30. The stock has a 50 day simple moving average of $164.56 and a 200 day simple moving average of $174.11. The company has a market cap of $23.87 billion, a price-to-earnings ratio of -56.64, a PEG ratio of 0.42 and a beta of 1.75.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings data 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 business had revenue of $2.52 billion for the quarter, compared to analyst estimates of $2.57 billion. During the same quarter last year, the company earned $3.57 EPS. Constellation Brands's revenue was down 5.5% compared to the same quarter last year. Constellation Brands has set its FY 2026 guidance at 12.600-12.900 EPS. As a group, analysts predict that Constellation Brands Inc will post 13.5 EPS for the current year.

Constellation Brands Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Wednesday, July 30th were given a $1.02 dividend. This represents a $4.08 annualized dividend and a yield of 3.0%. The ex-dividend date was Wednesday, July 30th. Constellation Brands's dividend payout ratio (DPR) is currently -170.71%.

Insider Transactions 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 shares were sold at an average price of $169.00, for a total value of $138,749.00. Following the completion of the transaction, the executive vice president directly owned 9,438 shares of the company's stock, valued at approximately $1,595,022. The trade was a 8.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 12.45% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Harbor Capital Advisors Inc. raised its position in Constellation Brands by 36.4% during the first quarter. Harbor Capital Advisors Inc. now owns 3,051 shares of the company's stock worth $560,000 after acquiring an additional 815 shares in the last quarter. Glenview Trust co raised its position in shares of Constellation Brands by 6.8% in the first quarter. Glenview Trust co now owns 69,427 shares of the company's stock valued at $12,741,000 after purchasing an additional 4,421 shares during the period. Confluence Investment Management LLC raised its position in shares of Constellation Brands by 1.5% in the second quarter. Confluence Investment Management LLC now owns 143,508 shares of the company's stock valued at $23,346,000 after purchasing an additional 2,135 shares during the period. Golden State Wealth Management LLC raised its position in shares of Constellation Brands by 137.0% in the first quarter. Golden State Wealth Management LLC now owns 2,204 shares of the company's stock valued at $405,000 after purchasing an additional 1,274 shares during the period. Finally, Invst LLC bought a new position in shares of Constellation Brands in the first quarter valued at about $1,366,000. 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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