California Public Employees Retirement System Sells 27,814 Shares of Constellation Brands Inc $STZ

Key Points

• CalPERS trimmed its Constellation Brands stake by 7.9% in the first quarter, selling 27,814 shares and leaving it with 323,015 shares worth about $48.5 million.
• Constellation Brands reported mixed quarterly results, with earnings of $3.43 per share falling short of estimates, while revenue of $2.43 billion slightly beat expectations; revenue was still down 3.3% year over year.
• The company continues to pay a sizable dividend, declaring a quarterly payout of $1.03 per share, or $4.12 annualized, which implies a 3.1% yield.

California Public Employees Retirement System decreased its stake in Constellation Brands Inc (NYSE:STZ - Free Report) by 7.9% in the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 323,015 shares of the company's stock after selling 27,814 shares during the quarter. California Public Employees Retirement System owned about 0.19% of Constellation Brands worth $48,452,000 at the end of the most recent reporting period.

Other large investors have also recently modified their holdings of the company. Choreo LLC increased its position in Constellation Brands by 2.1% during the fourth quarter. Choreo LLC now owns 3,116 shares of the company's stock valued at $437,000 after acquiring an additional 63 shares during the last quarter. HM Payson & Co. raised its stake in shares of Constellation Brands by 10.0% in the fourth quarter. HM Payson & Co. now owns 701 shares of the company's stock valued at $97,000 after acquiring an additional 64 shares during the period. Clearstead Trust LLC lifted its holdings in shares of Constellation Brands by 14.2% in the 4th quarter. Clearstead Trust LLC now owns 548 shares of the company's stock worth $76,000 after acquiring an additional 68 shares during the last quarter. Johnson Financial Group Inc. lifted its holdings in shares of Constellation Brands by 24.9% in the 4th quarter. Johnson Financial Group Inc. now owns 346 shares of the company's stock worth $48,000 after acquiring an additional 69 shares during the last quarter. Finally, HB Wealth Management LLC boosted its stake in shares of Constellation Brands by 0.7% during the 1st quarter. HB Wealth Management LLC now owns 10,795 shares of the company's stock worth $1,619,000 after purchasing an additional 72 shares during the period. Institutional investors own 77.34% of the company's stock.

Insiders Place Their Bets

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 transaction, the executive vice president directly owned 9,109 shares of the company's stock, valued at $1,304,773.16. This represents a 32.61% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 12.20% of the stock is currently owned by company insiders.

Constellation Brands Trading Up 1.2%

STZ opened at $134.41 on Tuesday. The company has a current ratio of 0.91, a quick ratio of 0.48 and a debt-to-equity ratio of 1.06. The firm has a market cap of $22.95 billion, a price-to-earnings ratio of 12.83, a PEG ratio of 4.14 and a beta of 0.39. Constellation Brands Inc has a 12 month low of $126.45 and a 12 month high of $178.13. The stock has a fifty day moving average price of $140.34 and a 200-day moving average price of $149.53.

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

Constellation Brands Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 13th. Investors of record on Thursday, July 30th will be paid 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 payout ratio is 39.31%.

Wall Street Analysts Forecast Growth

STZ has been the topic of a number of analyst reports. JPMorgan Chase & Co. cut their target price on Constellation Brands from $169.00 to $165.00 and set a "neutral" rating on the stock in a research note on Thursday, July 2nd. Deutsche Bank Aktiengesellschaft decreased their price target on Constellation Brands from $155.00 to $150.00 and set a "hold" rating for the company in a research note on Thursday, July 2nd. Roth Capital restated a "buy" rating and set a $209.00 price objective on shares of Constellation Brands in a report on Thursday, July 2nd. UBS Group cut their price objective on Constellation Brands from $186.00 to $175.00 and set a "buy" rating on the stock in a research report on Wednesday, June 17th. Finally, Bank of America reduced their target price on Constellation Brands from $152.00 to $145.00 and set an "underperform" rating on the stock in a research note on Thursday, July 2nd. Eleven equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Constellation Brands presently has an average rating of "Hold" and an average price target of $167.89.

Constellation Brands Company 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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