Constellation Brands (NYSE:STZ) Shares Down 6.2% - Here's What Happened

Key Points

• Constellation Brands shares fell 6.2% in mid-day trading, reaching approximately $130.57, with trading volume 72% below its average.
• The company’s latest quarterly earnings missed expectations: EPS was $3.43 versus the $3.70 consensus, while revenue of $2.43 billion exceeded estimates but declined 3.3% year over year.
• Analyst sentiment is mixed, with a consensus rating of “Hold” and an average price target of $167.53; the company also maintains a quarterly dividend of $1.03, yielding about 3.1% annually.

Constellation Brands Inc (NYSE:STZ - Get Free Report)'s stock price was down 6.2% during mid-day trading on Monday . The stock traded as low as $131.35 and last traded at $130.5660. 635,500 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 2,231,391 shares. The stock had previously closed at $139.18.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on STZ. Barclays cut their target price on Constellation Brands from $139.00 to $132.00 and set an "equal weight" rating for the company in a research note on Tuesday, July 21st. Needham & Company LLC reissued a "buy" rating and issued a $185.00 price objective on shares of Constellation Brands in a report on Thursday, July 2nd. Freedom Capital downgraded shares of Constellation Brands from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, July 1st. Jefferies Financial Group set a $147.00 target price on shares of Constellation Brands in a research note on Thursday, July 2nd. Finally, Bank of America decreased their target price on shares of Constellation Brands from $152.00 to $145.00 and set an "underperform" rating on the stock in a report on Thursday, July 2nd. Eleven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $167.53.

Constellation Brands Trading Down 5.7%

The firm has a market cap of $22.43 billion, a price-to-earnings ratio of 12.53, a price-to-earnings-growth ratio of 4.33 and a beta of 0.40. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.48 and a current ratio of 0.91. The company has a 50 day moving average price of $136.19 and a 200 day moving average price of $146.95.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its quarterly earnings data on Tuesday, June 30th. The company reported $3.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.70 by ($0.27). The business had revenue of $2.43 billion for the quarter, compared to analyst estimates of $2.39 billion. Constellation Brands had a return on equity of 25.58% and a net margin of 18.87%.The firm's revenue for the quarter was down 3.3% compared to the same quarter last year. During the same period in the previous year, the business posted $3.22 earnings per share. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. On average, research analysts expect that Constellation Brands Inc will post 11.84 earnings per share for the current year.

Constellation Brands Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, August 13th. Stockholders of record on Thursday, July 30th were paid a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend was Thursday, July 30th. Constellation Brands's payout ratio is 39.31%.

Hedge Funds Weigh In On Constellation Brands

Hedge funds have recently made changes to their positions in the stock. MV Capital Management Inc. acquired a new position in Constellation Brands during the fourth quarter worth $26,000. Stance Capital LLC purchased a new position in shares of Constellation Brands during the third quarter worth $26,000. Strive Financial Group LLC acquired a new stake in shares of Constellation Brands in the fourth quarter valued at $27,000. Elyxium Wealth LLC acquired a new stake in shares of Constellation Brands in the fourth quarter valued at $33,000. Finally, Root Financial Partners LLC raised its holdings in shares of Constellation Brands by 231.3% in the 1st quarter. Root Financial Partners LLC now owns 222 shares of the company's stock valued at $33,000 after buying an additional 155 shares during the period. Hedge funds and other institutional investors own 77.34% of the company's stock.

Constellation Brands Company Profile

Constellation Brands, Inc is a leading producer and marketer of beer, wine and spirits, with operations spanning production, importation, marketing and distribution. The company's beverage portfolio includes a range of premium and mainstream wines and spirits alongside major imported beer brands; in the U.S. market Constellation is widely known for its role in bringing Mexican imports such as Corona and Modelo to American consumers. Constellation supplies retail, on‑premise and foodservice channels and supports its brands with national sales and marketing platforms and supply‑chain capabilities.

The company traces its roots to the Canandaigua Wine Company, founded by Marvin Sands in 1945, and evolved through organic growth and acquisition into a diversified beverage company.

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