Constellation Brands (NYSE:STZ) Shares Gap Up After Earnings Beat

Key Points

• Constellation Brands stocks jumped from a previous close of $138.71 to an opening price of $144.50 following a positive earnings report, reporting $3.63 EPS which exceeded expectations by $0.26.
• The company also announced a quarterly dividend of $1.02, set to be paid on November 13th, representing an annual yield of 2.9%.
• Multiple analysts have revised their target prices for the stock, with JPMorgan boosting it to $182.00 while others have downgraded their projections, indicating mixed market sentiments.

Constellation Brands Inc (NYSE:STZ - Get Free Report) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $138.71, but opened at $144.50. Constellation Brands shares last traded at $142.57, with a volume of 1,696,957 shares traded.

The company reported $3.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.37 by $0.26. Constellation Brands had a positive return on equity of 31.41% and a negative net margin of 4.11%.The firm had revenue of $2.48 billion during the quarter, compared to analysts' expectations of $2.68 billion. During the same period in the previous year, the firm posted $4.32 earnings per share. Constellation Brands's revenue was down 15.0% on a year-over-year basis.

Constellation Brands Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 13th. Investors of record on Thursday, October 30th will be paid a $1.02 dividend. The ex-dividend date of this dividend is Thursday, October 30th. This represents a $4.08 annualized dividend and a yield of 2.9%. Constellation Brands's payout ratio is presently -170.71%.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. JPMorgan Chase & Co. boosted their target price on shares of Constellation Brands from $170.00 to $182.00 and gave the company a "neutral" rating in a research note on Thursday, July 3rd. Jefferies Financial Group cut their target price on shares of Constellation Brands from $205.00 to $179.00 and set a "buy" rating for the company in a research note on Wednesday, September 3rd. Deutsche Bank Aktiengesellschaft cut their target price 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. BNP Paribas Exane downgraded shares of Constellation Brands from a "neutral" rating to an "underperform" rating and set a $123.00 target price for the company. in a research note on Wednesday, September 3rd. Finally, Roth Capital reissued a "buy" rating and issued a $209.00 target price (down previously from $239.00) on shares of Constellation Brands in a research note on Wednesday, September 3rd. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have issued a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $188.36.

Insider Buying and Selling at Constellation Brands

In other news, EVP James O. Bourdeau sold 821 shares of the company's stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $169.00, for a total value of $138,749.00. Following the completion of the sale, the executive vice president owned 9,438 shares of the company's stock, valued at $1,595,022. This represents a 8.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 12.45% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of STZ. Laurel Wealth Advisors LLC bought a new position in Constellation Brands during the 1st quarter worth approximately $32,000. Rakuten Securities Inc. raised its stake in Constellation Brands by 805.0% during the 1st quarter. Rakuten Securities Inc. now owns 181 shares of the company's stock valued at $33,000 after acquiring an additional 161 shares in the last quarter. Zions Bancorporation National Association UT bought a new stake in Constellation Brands during the 1st quarter valued at $38,000. Flaharty Asset Management LLC acquired a new position in shares of Constellation Brands during the 1st quarter valued at $39,000. Finally, Hoey Investments Inc. acquired a new position in shares of Constellation Brands during the 2nd quarter valued at $40,000. Institutional investors own 77.34% of the company's stock.

Constellation Brands Trading Up 2.2%

The company has a current ratio of 1.07, a quick ratio of 0.68 and a debt-to-equity ratio of 1.30. The company has a market capitalization of $24.99 billion, a price-to-earnings ratio of -59.43, a PEG ratio of 0.43 and a beta of 0.66. The firm has a 50-day moving average price of $153.05 and a 200-day moving average price of $169.08.

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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