Bank of New York Mellon Corp Grows Position in Constellation Brands Inc $STZ

Key Points

• Bank of New York Mellon increased its stake in Constellation Brands by 4.0% in Q1, ending with 1,042,651 shares valued at about $156.4 million. The filing also notes that institutional investors own 77.34% of the company.
• Constellation Brands reported Q1 earnings of $3.43 per share, missing analyst expectations of $3.70, even though revenue of $2.43 billion slightly beat estimates. Revenue was still down 3.3% from a year earlier.
• The company declared a quarterly dividend of $1.03 per share, payable August 13, implying an annualized dividend of $4.12 and a yield of 3.1%. Meanwhile, analysts currently have a consensus rating of Hold with an average price target of $167.89.

Bank of New York Mellon Corp grew its position in Constellation Brands Inc (NYSE:STZ - Free Report) by 4.0% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,042,651 shares of the company's stock after acquiring an additional 40,124 shares during the quarter. Bank of New York Mellon Corp owned 0.61% of Constellation Brands worth $156,398,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also modified their holdings of the company. MV Capital Management Inc. purchased a new stake in Constellation Brands during the fourth quarter valued at approximately $26,000. Stance Capital LLC purchased a new position in shares of Constellation Brands in the 3rd quarter worth approximately $26,000. Strive Financial Group LLC bought a new position in shares of Constellation Brands during the 4th quarter valued at approximately $27,000. Elyxium Wealth LLC bought a new position in shares of Constellation Brands during the 4th quarter valued at approximately $33,000. Finally, Root Financial Partners LLC raised its holdings in Constellation Brands by 231.3% during the 1st quarter. Root Financial Partners LLC now owns 222 shares of the company's stock valued at $33,000 after buying an additional 155 shares during the period. 77.34% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Constellation Brands news, EVP James O. Bourdeau sold 4,407 shares of Constellation Brands stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $143.24, for a total value of $631,258.68. Following the completion of the transaction, the executive vice president owned 9,109 shares of the company's stock, valued at approximately $1,304,773.16. The trade was a 32.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 12.20% of the company's stock.

Constellation Brands Price Performance

Shares of NYSE STZ opened at $133.16 on Monday. The company has a market cap of $22.74 billion, a PE ratio of 12.71, a P/E/G ratio of 4.14 and a beta of 0.39. Constellation Brands Inc has a fifty-two week low of $126.45 and a fifty-two week high of $178.13. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.48 and a current ratio of 0.91. The business has a 50-day simple moving average of $140.50 and a two-hundred day simple moving average of $149.57.

Constellation Brands (NYSE:STZ - Get Free Report) last posted its earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.70 by ($0.27). Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The business had revenue of $2.43 billion for the quarter, compared to analyst estimates of $2.39 billion. During the same quarter in the prior year, the firm earned $3.22 earnings per share. The company's revenue for the quarter was down 3.3% on a year-over-year basis. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, equities analysts expect that Constellation Brands Inc will post 11.82 EPS for the current fiscal year.

Constellation Brands Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Investors of record on Thursday, July 30th will be given a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a yield of 3.1%. The ex-dividend date is Thursday, July 30th. Constellation Brands's dividend payout ratio (DPR) is currently 39.31%.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Needham & Company LLC reiterated a "buy" rating and set a $185.00 price objective on shares of Constellation Brands in a research report on Thursday, July 2nd. Morgan Stanley lowered their target price on shares of Constellation Brands from $183.00 to $158.00 and set an "equal weight" rating for the company in a report on Thursday, July 2nd. Bank of America cut their price target on shares of Constellation Brands from $152.00 to $145.00 and set an "underperform" rating on the stock in a report on Thursday, July 2nd. Wells Fargo & Company dropped their target price on Constellation Brands from $185.00 to $170.00 and set an "overweight" rating for the company in a research report on Monday, June 29th. Finally, Barclays reduced their price target on Constellation Brands from $170.00 to $139.00 and set an "equal weight" rating on the stock in a report on Thursday, July 2nd. Eleven research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Constellation Brands has an average rating of "Hold" and an average price target of $167.89.

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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