Constellation Brands Inc $STZ Position Boosted by Capital World Investors

Key Points

• Capital World Investors increased its stake in Constellation Brands by 8.3% in the fourth quarter, ending with 7.24 million shares valued at about $998.7 million, or roughly 4.17% of the company.
• Analysts are broadly positive on STZ, with a consensus rating of “Moderate Buy” and an average price target of $175.26; several firms recently raised their targets to as high as $185.
• Constellation Brands reported quarterly EPS of $1.90, beating estimates, and recently increased its dividend to $1.03 per share quarterly, which implies a 2.9% yield.

Capital World Investors grew its holdings in shares of Constellation Brands Inc (NYSE:STZ - Free Report) by 8.3% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 7,238,575 shares of the company's stock after purchasing an additional 553,974 shares during the period. Capital World Investors owned approximately 4.17% of Constellation Brands worth $998,740,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently made changes to their positions in the business. Choreo LLC boosted its position in shares of Constellation Brands by 2.1% during the 4th quarter. Choreo LLC now owns 3,116 shares of the company's stock valued at $437,000 after purchasing an additional 63 shares in the last quarter. Clearstead Trust LLC boosted its position 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 purchasing an additional 68 shares in the last quarter. Dynamic Advisor Solutions LLC lifted its stake in Constellation Brands by 2.2% during the fourth quarter. Dynamic Advisor Solutions LLC now owns 3,507 shares of the company's stock valued at $484,000 after buying an additional 76 shares in the last quarter. Larson Financial Group LLC lifted its stake in Constellation Brands by 2.6% during the fourth quarter. Larson Financial Group LLC now owns 3,610 shares of the company's stock valued at $498,000 after buying an additional 93 shares in the last quarter. Finally, Sigma Planning Corp lifted its stake in Constellation Brands by 4.0% during the fourth quarter. Sigma Planning Corp now owns 2,458 shares of the company's stock valued at $325,000 after buying an additional 95 shares in the last quarter. Institutional investors own 77.34% of the company's stock.

Analysts Set New Price Targets

A number of analysts have commented on STZ shares. JPMorgan Chase & Co. upped their price objective 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. Needham & Company LLC upped their price objective on shares of Constellation Brands from $180.00 to $185.00 and gave the company a "buy" rating in a research note on Friday, April 10th. Morgan Stanley upped 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 note on Friday, April 10th. Wells Fargo & Company upped their price objective 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. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and set a $185.00 price objective on shares of Constellation Brands in a research note on Friday, April 10th. One equities research 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 given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $175.26.

Insider Activity

In other news, EVP James O. Bourdeau sold 4,407 shares of the firm's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $143.24, for a total value 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 trade represents a 32.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 12.45% of the company's stock.

Constellation Brands Trading Up 0.1%

NYSE:STZ opened at $141.11 on Monday. The stock's 50 day moving average price is $150.69 and its 200 day moving average price is $149.53. Constellation Brands Inc has a 52 week low of $126.45 and a 52 week high of $178.13. The company has a market capitalization of $24.30 billion, a P/E ratio of 14.71, a P/E/G ratio of 3.26 and a beta of 0.39. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.55 and a current ratio of 1.08.

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

Constellation Brands Increases Dividend

The business 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 annualized dividend and a dividend yield of 2.9%. Constellation Brands's dividend payout ratio is 42.96%.

Constellation Brands Company 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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