Confluence Investment Management LLC Sells 12,081 Shares of Constellation Brands Inc $STZ

Key Points

• Confluence Investment Management reduced its Constellation Brands stake by 7%, selling 12,081 shares and retaining 159,566 shares valued at approximately $22.2 million. Institutional investors collectively own 77.34% of the company.
• Constellation Brands reported quarterly EPS of $3.43, below the $3.70 analyst estimate, while revenue of $2.43 billion exceeded expectations but declined 3.3% year over year. The stock opened at $131.27, near its 12-month low, and analysts maintain a consensus “Hold” rating with a $167.53 average price target.
• The company declared a quarterly dividend of $1.03 per share, equivalent to $4.12 annually and a 3.1% yield. An executive also sold 4,407 shares, while insider ownership stands at 12.20%.

Confluence Investment Management LLC trimmed its stake in Constellation Brands Inc (NYSE:STZ - Free Report) by 7.0% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 159,566 shares of the company's stock after selling 12,081 shares during the period. Confluence Investment Management LLC owned about 0.09% of Constellation Brands worth $22,194,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of the stock. Capital International Investors increased its stake in shares of Constellation Brands by 48.5% in the fourth quarter. Capital International Investors now owns 6,442,600 shares of the company's stock valued at $888,930,000 after buying an additional 2,105,546 shares during the period. Norges Bank acquired a new position in shares of Constellation Brands in the fourth quarter worth approximately $267,798,000. Ameriprise Financial Inc. lifted its stake in shares of Constellation Brands by 650.6% in the second quarter. Ameriprise Financial Inc. now owns 1,769,741 shares of the company's stock worth $287,889,000 after acquiring an additional 1,533,961 shares during the period. Wellington Management Group LLP lifted its stake in shares of Constellation Brands by 14.0% in the fourth quarter. Wellington Management Group LLP now owns 6,018,653 shares of the company's stock worth $830,333,000 after acquiring an additional 739,393 shares during the period. Finally, Pzena Investment Management LLC bought a new stake in Constellation Brands in the fourth quarter valued at approximately $81,381,000. 77.34% of the stock is owned by institutional investors.

Constellation Brands Stock Up 0.8%

Constellation Brands stock opened at $131.27 on Tuesday. The company has a quick ratio of 0.48, a current ratio of 0.91 and a debt-to-equity ratio of 1.06. Constellation Brands Inc has a 12-month low of $126.45 and a 12-month high of $174.32. The firm's fifty day moving average is $137.28 and its 200 day moving average is $148.58. The company has a market capitalization of $22.42 billion, a PE ratio of 12.53, a PEG ratio of 4.05 and a beta of 1.75.

Constellation Brands (NYSE:STZ - Get Free Report) last posted its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 EPS for the quarter, missing analysts' consensus estimates 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 analyst estimates of $2.39 billion. During the same quarter in the previous year, the business posted $3.22 earnings per share. The company's revenue for the quarter 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. As a group, sell-side analysts predict that Constellation Brands Inc will post 11.84 EPS for the current fiscal year.

Constellation Brands Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 13th. Stockholders of record on Thursday, July 30th will be paid a $1.03 dividend. The ex-dividend date is Thursday, July 30th. This represents a $4.12 annualized dividend and a dividend yield of 3.1%. Constellation Brands's dividend payout ratio (DPR) is currently 39.31%.

Insider Buying and Selling

In related news, EVP James O. Bourdeau sold 4,407 shares of the business's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total value of $631,258.68. Following the completion of the sale, the executive vice president directly owned 9,109 shares of the company's stock, valued at $1,304,773.16. The trade was a 32.61% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 12.20% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

STZ has been the subject of several analyst reports. Barclays lowered their price target on shares of Constellation Brands from $139.00 to $132.00 and set an "equal weight" rating for the company in a report on Tuesday, July 21st. Evercore set a $175.00 price objective on shares of Constellation Brands and gave the company an "outperform" rating in a research note on Friday, April 10th. JPMorgan Chase & Co. decreased their price objective on shares of Constellation Brands from $169.00 to $165.00 and set a "neutral" rating for the company in a research report on Thursday, July 2nd. Deutsche Bank Aktiengesellschaft lowered their target price on shares of Constellation Brands from $155.00 to $150.00 and set a "hold" rating for the company in a research note on Thursday, July 2nd. Finally, Freedom Capital lowered 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 assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Constellation Brands currently has a consensus rating of "Hold" and an average price target of $167.53.

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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