AEGON ASSET MANAGEMENT UK Plc Acquires Shares of 137,707 Constellation Brands Inc $STZ

Key Points

• AEGON ASSET MANAGEMENT UK Plc opened a new position in Constellation Brands, buying 137,707 shares valued at about $20.7 million in the first quarter and owning roughly 0.08% of the company.
• Constellation Brands reported better-than-expected quarterly earnings of $1.90 per share on revenue of $1.92 billion, though sales still declined 11.3% year over year.
• The company also raised its quarterly dividend to $1.03 per share, while Wall Street maintains a Moderate Buy consensus with an average target price of $174.68.

AEGON ASSET MANAGEMENT UK Plc bought a new position in shares of Constellation Brands Inc (NYSE:STZ - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 137,707 shares of the company's stock, valued at approximately $20,655,000. AEGON ASSET MANAGEMENT UK Plc owned approximately 0.08% of Constellation Brands at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently made changes to their positions in the stock. Capital International Investors increased its holdings in shares of Constellation Brands by 48.5% during the fourth quarter. Capital International Investors now owns 6,442,600 shares of the company's stock worth $888,930,000 after buying an additional 2,105,546 shares in the last quarter. Norges Bank acquired a new stake in shares of Constellation Brands during the 4th quarter valued at $267,798,000. Ameriprise Financial Inc. boosted its holdings in shares of Constellation Brands by 650.6% during the 2nd quarter. Ameriprise Financial Inc. now owns 1,769,741 shares of the company's stock valued at $287,889,000 after acquiring an additional 1,533,961 shares in the last quarter. Wellington Management Group LLP boosted its holdings in shares of Constellation Brands by 14.0% during the 4th quarter. Wellington Management Group LLP now owns 6,018,653 shares of the company's stock valued at $830,333,000 after acquiring an additional 739,393 shares in the last quarter. Finally, Pzena Investment Management LLC bought a new stake in Constellation Brands during the 4th quarter worth $81,381,000. Institutional investors own 77.34% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on STZ shares. JPMorgan Chase & Co. upped their target price on Constellation Brands from $155.00 to $163.00 and gave the stock a "neutral" rating in a report on Wednesday, April 1st. Piper Sandler lifted their price target on Constellation Brands from $146.00 to $160.00 and gave the company a "neutral" rating in a research note on Friday, April 10th. Morgan Stanley boosted their price target on Constellation Brands from $160.00 to $183.00 and gave the stock an "equal weight" rating in a report on Friday, April 10th. UBS Group reduced their price target on Constellation Brands from $186.00 to $175.00 and set a "buy" rating on the stock in a report on Wednesday. Finally, Citigroup reaffirmed a "buy" rating on shares of Constellation Brands in a research note on Monday, May 18th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $174.68.

Constellation Brands Price Performance

Shares of NYSE STZ opened at $141.25 on Friday. Constellation Brands Inc has a twelve month low of $126.45 and a twelve month high of $178.13. The firm has a fifty day simple moving average of $148.95 and a 200 day simple moving average of $150.12. The company has a market capitalization of $24.32 billion, a PE ratio of 14.73, a P/E/G ratio of 3.32 and a beta of 0.39. The company has a quick ratio of 0.55, a current ratio of 1.08 and a debt-to-equity ratio of 1.16.

Constellation Brands (NYSE:STZ - Get Free Report) last released its earnings results on Wednesday, April 8th. The company reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.71 by $0.19. The business had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.84 billion. Constellation Brands had a net margin of 17.29% and a return on equity of 26.18%. Constellation Brands's revenue for the quarter was down 11.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.63 earnings per share. On average, sell-side analysts forecast that Constellation Brands Inc will post 11.84 EPS for the current year.

Constellation Brands Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 14th. Stockholders of record on Wednesday, April 29th were paid a $1.03 dividend. The ex-dividend date of this dividend was Wednesday, April 29th. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.9%. This is a positive change from Constellation Brands's previous quarterly dividend of $1.02. Constellation Brands's dividend payout ratio (DPR) is presently 42.96%.

Insider Activity

In related news, EVP James O. Bourdeau sold 4,407 shares of the company's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total transaction of $631,258.68. Following the sale, the executive vice president owned 9,109 shares in the company, valued at $1,304,773.16. This represents a 32.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 12.20% of the stock is owned by corporate insiders.

About Constellation Brands

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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