589,891 Shares in Constellation Brands Inc $STZ Acquired by Pzena Investment Management LLC

Key Points

• Pzena Investment Management opened a new position in Constellation Brands in the fourth quarter, buying 589,891 shares worth about $81.4 million, or roughly 0.34% of the company.
• Constellation Brands reported quarterly EPS of $1.90, beating estimates, and revenue of $1.92 billion, though sales were still down 11.3% year over year.
• The company raised its quarterly dividend to $1.03 per share and received a mostly positive analyst outlook, with a consensus rating of Moderate Buy and a target price of $175.37.

Pzena Investment Management LLC purchased a new position in shares of Constellation Brands Inc (NYSE:STZ - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 589,891 shares of the company's stock, valued at approximately $81,381,000. Pzena Investment Management LLC owned about 0.34% of Constellation Brands at the end of the most recent reporting period.

Other institutional investors and hedge funds have also modified their holdings of the company. Root Financial Partners LLC bought a new stake in shares of Constellation Brands during the third quarter worth approximately $26,000. Stance Capital LLC bought a new stake in shares of Constellation Brands during the third quarter worth approximately $26,000. GoalVest Advisory LLC bought a new stake in shares of Constellation Brands during the fourth quarter worth approximately $28,000. Elyxium Wealth LLC bought a new stake in shares of Constellation Brands during the fourth quarter worth approximately $33,000. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new stake in shares of Constellation Brands during the fourth quarter worth approximately $39,000. 77.34% of the stock is owned by institutional investors.

Constellation Brands Stock Down 0.2%

NYSE:STZ opened at $150.86 on Friday. Constellation Brands Inc has a 1 year low of $126.45 and a 1 year high of $186.40. The company has a current ratio of 1.08, a quick ratio of 0.55 and a debt-to-equity ratio of 1.16. The stock has a market cap of $25.98 billion, a price-to-earnings ratio of 15.73, a PEG ratio of 3.32 and a beta of 1.75. The stock has a 50-day moving average price of $152.74 and a two-hundred day moving average price of $148.60.

Constellation Brands (NYSE:STZ - Get Free Report) last posted its earnings results on Wednesday, April 8th. The company reported $1.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.71 by $0.19. Constellation Brands had a return on equity of 26.18% and a net margin of 17.29%.The firm had revenue of $1.92 billion during the quarter, compared to analysts' expectations of $1.84 billion. During the same period in the previous year, the firm earned $2.63 earnings per share. The company's revenue was down 11.3% on a year-over-year basis. As a group, equities analysts expect that Constellation Brands Inc will post 11.9 earnings per share for the current year.

Constellation Brands Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 14th. Stockholders of record on Wednesday, April 29th were given a dividend of $1.03 per share. This is a positive change from Constellation Brands's previous quarterly dividend of $1.02. This represents a $4.12 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Wednesday, April 29th. Constellation Brands's payout ratio is currently 42.96%.

Insider Activity

In other news, EVP James O. Bourdeau sold 4,407 shares of the stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $143.24, for a total transaction of $631,258.68. Following the completion of the sale, the executive vice president owned 9,109 shares of the company's stock, valued at $1,304,773.16. This represents a 32.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 12.45% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on STZ shares. Citigroup reissued a "buy" rating on shares of Constellation Brands in a research note on Monday. Piper Sandler upped their target price on shares of Constellation Brands from $146.00 to $160.00 and gave the company a "neutral" rating in a research note on Friday, April 10th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $185.00 target price on shares of Constellation Brands in a research note on Friday, April 10th. Evercore set a $175.00 target price on shares of Constellation Brands and gave the company an "outperform" rating in a research note on Friday, April 10th. Finally, Wells Fargo & Company upped their target price on shares of Constellation Brands from $180.00 to $185.00 and gave the company an "overweight" rating in a research note on Friday, April 10th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $175.37.

Constellation Brands 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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