California State Teachers Retirement System Raises Stock Position in Constellation Brands Inc $STZ

Key Points

• California State Teachers Retirement System dramatically increased its Constellation Brands stake by 14,134.2% to 34.4 million shares, representing about 20.13% of the company and valued at $4.78 billion. Institutional investors collectively own 77.34% of STZ.
• Analyst sentiment is mixed: 11 analysts rate the stock a Buy, nine a Hold and one a Sell, resulting in an overall “Hold” rating and an average price target of $170.
• Constellation Brands is facing near-term pressure, with shares near their 52-week low after quarterly EPS missed estimates and revenue declined 3.3% year over year. Management also cited lackluster demand and potential margin pressure from logistics, commodity and marketing costs.

California State Teachers Retirement System boosted its stake in Constellation Brands Inc (NYSE:STZ - Free Report) by 14,134.2% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 34,381,935 shares of the company's stock after purchasing an additional 34,140,390 shares during the period. California State Teachers Retirement System owned approximately 20.13% of Constellation Brands worth $4,782,183,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in STZ. MV Capital Management Inc. bought a new position in shares of Constellation Brands during the 4th quarter valued at $26,000. Stance Capital LLC bought a new stake in shares of Constellation Brands in the third quarter worth $26,000. Strive Financial Group LLC bought a new stake in shares of Constellation Brands in the fourth quarter worth $27,000. Cedar Mountain Advisors LLC purchased a new stake in Constellation Brands during the first quarter valued at $33,000. Finally, Root Financial Partners LLC increased its position in Constellation Brands by 231.3% during the first quarter. Root Financial Partners LLC now owns 222 shares of the company's stock valued at $33,000 after acquiring an additional 155 shares during the last quarter. 77.34% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. BMO Capital Markets reissued an "outperform" rating and issued a $190.00 target price on shares of Constellation Brands in a report on Thursday, July 2nd. Piper Sandler restated a "neutral" rating and set a $160.00 price target on shares of Constellation Brands in a research note on Wednesday, July 1st. Needham & Company LLC reaffirmed a "buy" rating and set a $185.00 price target on shares of Constellation Brands in a research report on Thursday, July 2nd. Citigroup reiterated a "buy" rating on shares of Constellation Brands in a research note on Monday, May 18th. Finally, Freedom Capital downgraded shares of Constellation Brands from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 1st. Eleven analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Constellation Brands presently has an average rating of "Hold" and an average target price of $170.00.

Key Stories Impacting Constellation Brands

Here are the key news stories impacting Constellation Brands this week:

• Positive Sentiment: Constellation Brands plans to redeem all $600 million of its outstanding 4.350% senior notes due 2027 on September 18, 2026. The move could reduce future interest expense and indicates management is actively optimizing its debt structure, although the cash outlay may limit the immediate financial benefit. Constellation Brands Announces Delivery of Notice of Redemption for 4.350% Senior Notes Due 2027
• Neutral Sentiment: Analysts remain cautiously optimistic, with a reported median price target of $172 versus the stock’s recent level near its 12-month low. However, the wide range of targets reflects uncertainty over the pace of recovery, and STZ has significantly underperformed the broader consumer defensive sector over the past year. Constellation Brands Stock: Is STZ Underperforming the Consumer Defensive Sector?
• Negative Sentiment: Management’s conference commentary renewed concerns about demand. August off-premise trends were described as lackluster after a stronger summer, while elevated fuel costs may be pressuring household spending and premium-beer consumption. Management also warned that second-half gross margins could be compressed by logistics inflation, commodity costs, seasonal factors, and increased marketing spending. These comments reinforce limited near-term visibility around beer sales, which are guided to range from a 1% decline to 1% growth. Constellation Brands Warns Logistics and Commodity Costs Will Compress H2 Margins

Constellation Brands Stock Performance

NYSE:STZ opened at $121.50 on Thursday. 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 stock has a 50-day simple moving average of $131.98 and a two-hundred day simple moving average of $143.37. The firm has a market capitalization of $20.75 billion, a PE ratio of 11.59, a P/E/G ratio of 2.28 and a beta of 0.41. Constellation Brands Inc has a 52-week low of $120.25 and a 52-week high of $168.60.

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). Constellation Brands had a return on equity of 25.58% and a net margin of 18.87%.The company had revenue of $2.43 billion during the quarter, compared to the consensus estimate of $2.39 billion. During the same period last year, the business earned $3.22 EPS. The firm's quarterly revenue was down 3.3% compared to the same quarter last year. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Analysts forecast that Constellation Brands Inc will post 11.84 EPS for the current year.

Constellation Brands Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 13th. Investors of record on Thursday, July 30th were issued a $1.03 dividend. This represents a $4.12 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend was Thursday, July 30th. Constellation Brands's dividend payout ratio is currently 39.31%.

Constellation Brands Company Profile

Constellation Brands, Inc NYSE: STZ is a beverage alcohol company that produces, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Corona Extra, Modelo Especial, Modelo Negra, Pacifico and Victoria, along with wine brands including Robert Mondavi, The Prisoner, Kim Crawford and Meiomi. Its spirits portfolio includes brands such as Casa Noble tequila and High West whiskey.

The company's beer business is focused primarily on the United States, where Constellation markets and sells Mexican beer brands brewed by its production operations in Mexico.

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