Capricorn Fund Managers Ltd Takes Position in Constellation Brands Inc $STZ

Key Points

• Capricorn Fund Managers Ltd disclosed a new first-quarter stake in Constellation Brands, buying 15,500 shares worth about $2.33 million.
• Constellation Brands reported stronger-than-expected quarterly results, with earnings per share of $3.43 and revenue of $2.43 billion, both ahead of Wall Street estimates.
• The company raised its quarterly dividend to $1.03 per share, but management also pointed to softer consumer trends and lower volume as ongoing headwinds for the outlook.

Capricorn Fund Managers Ltd acquired a new stake in shares of Constellation Brands Inc (NYSE:STZ - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 15,500 shares of the company's stock, valued at approximately $2,325,000.

A number of other hedge funds have also bought and sold shares of STZ. Choreo LLC grew its stake in shares of Constellation Brands by 2.1% in the fourth quarter. Choreo LLC now owns 3,116 shares of the company's stock worth $437,000 after acquiring an additional 63 shares during the period. HM Payson & Co. lifted its holdings in shares of Constellation Brands by 10.0% during the 4th quarter. HM Payson & Co. now owns 701 shares of the company's stock valued at $97,000 after buying an additional 64 shares during the period. Clearstead Trust LLC lifted its holdings in shares of Constellation Brands by 14.2% during the 4th quarter. Clearstead Trust LLC now owns 548 shares of the company's stock valued at $76,000 after buying an additional 68 shares during the period. Johnson Financial Group Inc. boosted its position in Constellation Brands by 24.9% in the fourth quarter. Johnson Financial Group Inc. now owns 346 shares of the company's stock worth $48,000 after purchasing an additional 69 shares during the last quarter. Finally, Smartleaf Asset Management LLC boosted its holdings in shares of Constellation Brands by 5.9% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,338 shares of the company's stock worth $188,000 after buying an additional 74 shares during the last quarter. Hedge funds and other institutional investors own 77.34% of the company's stock.

Insider Buying and Selling at Constellation Brands

In related news, EVP James O. Bourdeau sold 4,407 shares of the stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total transaction of $631,258.68. Following the sale, the executive vice president owned 9,109 shares in the company, valued at approximately $1,304,773.16. This represents a 32.61% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 12.20% of the company's stock.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Evercore set a $175.00 target price on shares of Constellation Brands and gave the stock an "outperform" rating in a report on Friday, April 10th. UBS Group lowered their price target on Constellation Brands from $186.00 to $175.00 and set a "buy" rating on the stock in a report on Wednesday, June 17th. Barclays upped their price target on Constellation Brands from $151.00 to $170.00 and gave the stock an "equal weight" rating in a research note on Friday, April 10th. Jefferies Financial Group cut their price objective on shares of Constellation Brands from $158.00 to $157.00 and set a "hold" rating for the company in a report on Tuesday, June 23rd. Finally, Morgan Stanley lifted their price objective on shares of Constellation Brands from $160.00 to $183.00 and gave the company an "equal weight" rating in a research report on Friday, April 10th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $172.21.

Constellation Brands Price Performance

Constellation Brands stock opened at $139.11 on Wednesday. The company has a market cap of $23.95 billion, a price-to-earnings ratio of 14.51, a PEG ratio of 4.12 and a beta of 0.39. The firm's fifty day moving average is $145.94 and its 200 day moving average is $150.26. The company has a quick ratio of 0.55, a current ratio of 1.08 and a debt-to-equity ratio of 1.16. Constellation Brands Inc has a 52-week low of $126.45 and a 52-week high of $178.13.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its quarterly earnings data on Tuesday, June 30th. The company reported $3.43 earnings per share for the quarter, topping the consensus estimate of $3.20 by $0.23. Constellation Brands had a return on equity of 26.18% and a net margin of 17.29%.The company had revenue of $2.43 billion for the quarter, compared to analysts' expectations of $2.39 billion. During the same period in the previous year, the firm posted $3.22 earnings per share. The firm'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. Sell-side analysts forecast that Constellation Brands Inc will post 11.78 EPS for the current fiscal year.

Constellation Brands Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 14th. Stockholders of record on Wednesday, April 29th were given a dividend of $1.03 per share. The ex-dividend date of this dividend was Wednesday, April 29th. This represents a $4.12 annualized dividend and a dividend yield of 3.0%. This is an increase from Constellation Brands's previous quarterly dividend of $1.02. Constellation Brands's dividend payout ratio is presently 42.96%.

Key Stories Impacting Constellation Brands

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

• Positive Sentiment: STZ reported adjusted EPS of $3.43, topping consensus estimates of about $3.22-$3.25, which signals stronger-than-expected profitability. Constellation Brands NYSE: STZ Beats Q2 CY2026 Sales Expectations
• Positive Sentiment: Revenue came in at $2.43 billion, slightly ahead of Wall Street estimates, suggesting demand was better than feared even though sales still declined year over year. Constellation Brands (STZ) Q1 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: The company reiterated a softer growth backdrop, with management citing lower volume trends and consumer weakness, which keeps pressure on the outlook despite the earnings beat. Constellation Brands Reports Lower First-Quarter Revenue, Citing Softening Consumer Trends
• Negative Sentiment: FY2027 EPS guidance of 11.20 to 11.90 was only modestly below expectations at the midpoint, suggesting investors may still worry about margin and demand headwinds in beer, wine and spirits. Constellation Brands NYSE: STZ Beats Q2 CY2026 Sales Expectations

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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