Constellation Brands Target of Unusually High Options Trading (NYSE:STZ)

Key Points

• Constellation Brands Inc. experienced a significant increase in options trading, with investors buying 16,742 put options, marking a 24% rise over the average volume.
• Institutional investors recently modified their stakes in Constellation Brands, with notable increases from firms like Assenagon Asset Management and Wesbanco Bank, highlighting growing interest in the stock.
• The company reported disappointing earnings, with a quarterly EPS of $3.22 which was below analyst expectations, along with a decline in revenue compared to the previous year.

Constellation Brands Inc (NYSE:STZ - Get Free Report) was the target of some unusual options trading on Monday. Investors bought 16,742 put options on the stock. This represents an increase of 24% compared to the average volume of 13,481 put options.

Insider Activity

In other news, EVP James O. Bourdeau sold 821 shares of Constellation Brands 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 sale, 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 document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 12.45% of the company's stock.

Institutional Trading of Constellation Brands

Several institutional investors have recently added to or reduced their stakes in STZ. Arlington Partners LLC acquired a new position in shares of Constellation Brands in the second quarter worth $2,333,000. Wesbanco Bank Inc. grew its stake in shares of Constellation Brands by 10.7% in the second quarter. Wesbanco Bank Inc. now owns 43,329 shares of the company's stock worth $7,049,000 after acquiring an additional 4,204 shares in the last quarter. Harbor Capital Advisors Inc. grew its stake in shares of Constellation Brands by 36.4% in 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 grew its stake 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 worth $12,741,000 after acquiring an additional 4,421 shares in the last quarter. Finally, Assenagon Asset Management S.A. grew its stake in shares of Constellation Brands by 969.5% in the second quarter. Assenagon Asset Management S.A. now owns 83,656 shares of the company's stock worth $13,609,000 after acquiring an additional 75,834 shares in the last quarter. Institutional investors and hedge funds own 77.34% of the company's stock.

Constellation Brands Trading Up 1.9%

Shares of STZ stock traded up $2.51 during trading on Monday, hitting $135.00. 670,446 shares of the stock traded hands, compared to its average volume of 2,471,811. Constellation Brands has a 52-week low of $131.20 and a 52-week high of $261.06. 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 firm's fifty day moving average price is $157.28 and its 200-day moving average price is $170.81. The firm has a market capitalization of $23.80 billion, a P/E ratio of -56.62, a price-to-earnings-growth ratio of 0.40 and a beta of 0.67.

Constellation Brands (NYSE:STZ - Get Free Report) last posted its earnings results 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 negative net margin of 4.11% and a positive return on equity of 31.41%. The company had revenue of $2.52 billion during the quarter, compared to analyst estimates of $2.57 billion. During the same quarter last year, the business posted $3.57 EPS. The firm'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. As a group, research analysts forecast that Constellation Brands will post 13.5 earnings per share for the current fiscal year.

Constellation Brands Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Investors of record on Wednesday, July 30th were issued 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 -170.71%.

Wall Street Analysts Forecast Growth

STZ has been the topic of several research reports. Zacks Research cut Constellation Brands from a "hold" rating to a "strong sell" rating in a report on Tuesday, September 9th. Wells Fargo & Company reduced their price objective on Constellation Brands from $170.00 to $155.00 and set an "overweight" rating on the stock in a research note on Thursday. BMO Capital Markets reduced their price objective 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. TD Cowen reduced their price objective on Constellation Brands from $180.00 to $152.00 and set a "hold" rating on the stock in a research note on Thursday, September 4th. Finally, Citigroup reduced their price objective on Constellation Brands from $155.00 to $145.00 and set a "neutral" rating on the stock in a research note on Tuesday, September 23rd. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, Constellation Brands presently has a consensus rating of "Hold" and a consensus target price of $191.28.

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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