Capital Group Private Client Services Inc. Acquires 9,130 Shares of Constellation Brands Inc $STZ

Key Points

• Capital Group Private Client Services boosted its Constellation Brands stake by 447.3% in the fourth quarter, buying 9,130 additional shares and bringing its total to 11,171 shares worth about $1.54 million.
• Constellation Brands reported better-than-expected quarterly results, with EPS of $1.90 and revenue of $1.92 billion, though revenue still fell 11.3% year over year.
• The company raised its quarterly dividend to $1.03 per share, while analysts remain moderately bullish overall with an average target price of $175.26.

Capital Group Private Client Services Inc. grew its holdings in shares of Constellation Brands Inc (NYSE:STZ - Free Report) by 447.3% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 11,171 shares of the company's stock after purchasing an additional 9,130 shares during the quarter. Capital Group Private Client Services Inc.'s holdings in Constellation Brands were worth $1,541,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also modified their holdings of the company. Capital Group Investment Management PTE. LTD. acquired a new stake in Constellation Brands in the 4th quarter worth $1,858,000. Los Angeles Capital Management LLC acquired a new stake in Constellation Brands in the 4th quarter worth $88,000. Longfellow Investment Management Co. LLC grew its position in Constellation Brands by 48.5% in the 4th quarter. Longfellow Investment Management Co. LLC now owns 6,869 shares of the company's stock worth $948,000 after purchasing an additional 2,244 shares during the last quarter. Havemeyer Place LP acquired a new stake in Constellation Brands in the 4th quarter worth $665,000. Finally, MCF Advisors LLC grew its position in Constellation Brands by 411.7% in the 4th quarter. MCF Advisors LLC now owns 481 shares of the company's stock worth $66,000 after purchasing an additional 387 shares during the last quarter. Institutional investors own 77.34% of the company's stock.

Constellation Brands Stock Up 0.1%

Shares of NYSE:STZ opened at $141.11 on Monday. Constellation Brands Inc has a 52 week low of $126.45 and a 52 week high of $178.13. 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 company has a market capitalization of $24.30 billion, a PE ratio of 14.71, a PEG ratio of 3.26 and a beta of 0.39. The company has a 50 day moving average price of $150.69 and a two-hundred day moving average price of $149.53.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its earnings results on Wednesday, April 8th. The company reported $1.90 EPS for the quarter, topping the consensus estimate of $1.71 by $0.19. The business had revenue of $1.92 billion during the quarter, compared to analysts' expectations of $1.84 billion. Constellation Brands had a net margin of 17.29% and a return on equity of 26.18%. The firm's revenue was down 11.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.63 earnings per share. Analysts forecast that Constellation Brands Inc will post 11.87 earnings per share for the current year.

Constellation Brands Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, May 14th. Shareholders of record on Wednesday, April 29th were issued a $1.03 dividend. The ex-dividend date of this dividend was Wednesday, April 29th. This represents a $4.12 annualized dividend and a yield of 2.9%. This is an increase from Constellation Brands's previous quarterly dividend of $1.02. Constellation Brands's payout ratio is 42.96%.

Insider Buying and Selling

In other Constellation Brands news, EVP James O. Bourdeau sold 4,407 shares of the firm's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $143.24, for a total value 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 trade represents a 32.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 12.45% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several research firms have issued reports on STZ. Morgan Stanley raised their price target on shares of Constellation Brands from $160.00 to $183.00 and gave the stock an "equal weight" rating in a research report on Friday, April 10th. 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 report on Friday, April 10th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Constellation Brands in a research report on Monday, May 4th. TD Cowen upgraded shares of Constellation Brands from a "hold" rating to a "buy" rating and lifted their target price for the company from $142.00 to $190.00 in a research report on Monday, April 13th. Finally, Needham & Company LLC lifted their target price on shares of Constellation Brands from $180.00 to $185.00 and gave the company a "buy" rating in a research report on Friday, April 10th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $175.26.

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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