Capital Group Investment Management PTE. LTD. Invests $1.86 Million in Constellation Brands Inc $STZ

Key Points

• Capital Group Investment Management PTE. LTD. opened a new position in Constellation Brands, buying 13,466 shares valued at about $1.86 million in the fourth quarter.
• Institutional ownership remains high, with hedge funds and other investors holding about 77.34% of the stock, while insider James O. Bourdeau recently sold 4,407 shares in a transaction worth $631,258.68.
• Analysts remain mixed but generally constructive on STZ, with a consensus rating of “Moderate Buy” and an average target price of $175.26; the company also recently raised its quarterly dividend to $1.03 per share.

Capital Group Investment Management PTE. LTD. purchased a new position in shares of Constellation Brands Inc (NYSE:STZ - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 13,466 shares of the company's stock, valued at approximately $1,858,000.

Other institutional investors have also made changes to their positions in the company. Stance Capital LLC acquired a new stake in shares of Constellation Brands during the third quarter worth approximately $26,000. GoalVest Advisory LLC acquired a new stake in shares of Constellation Brands during the fourth quarter worth approximately $28,000. Elyxium Wealth LLC acquired a new stake in shares of Constellation Brands during the fourth quarter worth approximately $33,000. Mowery & Schoenfeld Wealth Management LLC acquired a new stake in shares of Constellation Brands during the fourth quarter worth approximately $39,000. Finally, Bruce G. Allen Investments LLC boosted its holdings in shares of Constellation Brands by 74.9% during the fourth quarter. Bruce G. Allen Investments LLC now owns 306 shares of the company's stock worth $42,000 after purchasing an additional 131 shares during the period. 77.34% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Constellation Brands

In related news, EVP James O. Bourdeau sold 4,407 shares of the business's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $143.24, for a total transaction of $631,258.68. Following 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 sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 12.45% of the company's stock.

Analysts Set New Price Targets

A number of analysts have issued reports on STZ shares. Roth Mkm reiterated a "buy" rating on shares of Constellation Brands in a research note on Thursday, April 9th. Wells Fargo & Company lifted their target price on shares of Constellation Brands from $180.00 to $185.00 and gave the company an "overweight" rating in a research note on Friday, April 10th. JPMorgan Chase & Co. lifted their target price on shares of Constellation Brands from $155.00 to $163.00 and gave the company a "neutral" rating in a research note on Wednesday, April 1st. Bank of America reduced their target price on shares of Constellation Brands from $154.00 to $152.00 and set an "underperform" rating for the company in a research note on Thursday, May 28th. Finally, Barclays lifted their target price on shares of Constellation Brands from $151.00 to $170.00 and gave the company an "equal weight" rating in a research note on Friday, April 10th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $175.26.

Constellation Brands Price Performance

Shares of Constellation Brands stock opened at $141.11 on Friday. The firm has a fifty day simple moving average of $150.69 and a 200-day simple moving average of $149.41. The company has a current ratio of 1.08, a quick ratio of 0.55 and a debt-to-equity ratio of 1.16. Constellation Brands Inc has a 1-year low of $126.45 and a 1-year high of $178.13. The stock has a market capitalization of $24.30 billion, a price-to-earnings ratio of 14.71, a PEG ratio of 3.26 and a beta of 0.39.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its quarterly earnings data on Wednesday, April 8th. The company reported $1.90 earnings per share for the quarter, topping analysts' consensus estimates of $1.71 by $0.19. Constellation Brands had a net margin of 17.29% and a return on equity of 26.18%. The business had revenue of $1.92 billion during the quarter, compared to analysts' expectations of $1.84 billion. During the same period in the previous year, the company earned $2.63 earnings per share. Constellation Brands's revenue for the quarter was down 11.3% on a year-over-year basis. On average, sell-side analysts expect that Constellation Brands Inc will post 11.87 earnings per share for the current year.

Constellation Brands Increases Dividend

The company 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 was Wednesday, April 29th. This is a positive change from Constellation Brands's previous quarterly dividend of $1.02. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.9%. Constellation Brands's dividend payout ratio is presently 42.96%.

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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