Arrowstreet Capital Limited Partnership Acquires 200,555 Shares of Constellation Brands Inc $STZ

Key Points

• Arrowstreet Capital increased its Constellation Brands stake by 18.8% in Q4, adding 200,555 shares and bringing its total holding to 1,268,672 shares valued at about $175 million.
• Constellation Brands recently beat quarterly earnings expectations, reporting $1.90 EPS and $1.92 billion in revenue, though revenue was still down 11.3% year over year.
• The company also raised its quarterly dividend to $1.03 per share, while analysts currently maintain a Moderate Buy consensus with an average price target of $175.26.

Arrowstreet Capital Limited Partnership boosted its holdings in Constellation Brands Inc (NYSE:STZ - Free Report) by 18.8% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,268,672 shares of the company's stock after acquiring an additional 200,555 shares during the quarter. Arrowstreet Capital Limited Partnership owned 0.73% of Constellation Brands worth $175,026,000 at the end of the most recent quarter.

Several other hedge funds also recently modified their holdings of the company. Choreo LLC raised its holdings in shares of Constellation Brands by 2.1% in the fourth quarter. Choreo LLC now owns 3,116 shares of the company's stock valued at $437,000 after buying an additional 63 shares during the last quarter. HM Payson & Co. grew its holdings in Constellation Brands by 10.0% during the 4th quarter. HM Payson & Co. now owns 701 shares of the company's stock worth $97,000 after acquiring an additional 64 shares during the last quarter. Clearstead Trust LLC increased its position in Constellation Brands by 14.2% in the 4th quarter. Clearstead Trust LLC now owns 548 shares of the company's stock valued at $76,000 after acquiring an additional 68 shares in the last quarter. Johnson Financial Group Inc. lifted its position in shares of Constellation Brands by 24.9% during the fourth quarter. Johnson Financial Group Inc. now owns 346 shares of the company's stock worth $48,000 after purchasing an additional 69 shares in the last quarter. Finally, Smartleaf Asset Management LLC lifted its position in shares of Constellation Brands by 5.9% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,338 shares of the company's stock worth $188,000 after purchasing an additional 74 shares in the last quarter. Institutional investors and hedge funds own 77.34% of the company's stock.

Constellation Brands Trading Down 0.0%

STZ opened at $148.45 on Monday. The firm's fifty day moving average is $149.90 and its two-hundred day moving average is $149.94. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.55 and a current ratio of 1.08. The firm has a market cap of $25.56 billion, a PE ratio of 15.48, a price-to-earnings-growth ratio of 3.44 and a beta of 0.39. Constellation Brands Inc has a twelve month low of $126.45 and a twelve month high of $178.13.

Constellation Brands (NYSE:STZ - Get Free Report) last posted its earnings results on Wednesday, April 8th. The company reported $1.90 earnings per share for the quarter, topping the consensus estimate of $1.71 by $0.19. The company 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%. The business's revenue for the quarter was down 11.3% compared to the same quarter last year. During the same period last year, the business posted $2.63 earnings per share. Equities research analysts anticipate that Constellation Brands Inc will post 11.87 EPS for the current year.

Constellation Brands Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 14th. Investors of record on Wednesday, April 29th were paid a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Wednesday, April 29th. This is a boost from Constellation Brands's previous quarterly dividend of $1.02. Constellation Brands's dividend payout ratio (DPR) is currently 42.96%.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on STZ. Citigroup reiterated a "buy" rating on shares of Constellation Brands in a research report on Monday, May 18th. UBS Group raised their price objective on shares of Constellation Brands from $176.00 to $186.00 and gave the company a "buy" rating in a research note on Friday, April 10th. Needham & Company LLC lifted their target price on shares of Constellation Brands from $180.00 to $185.00 and gave the stock a "buy" rating in a report on Friday, April 10th. 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 report on Friday, April 10th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Constellation Brands in a research note on Monday, May 4th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $175.26.

Insider Transactions at Constellation Brands

In other Constellation Brands news, EVP James O. Bourdeau sold 4,407 shares of the 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 completion of the transaction, the executive vice president owned 9,109 shares in the company, valued at approximately $1,304,773.16. This represents a 32.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 12.20% of the company's stock.

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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