Constellation Brands Inc $STZ Position Cut by BLI Banque de Luxembourg Investments

Key Points

• BLI Banque de Luxembourg Investments cut its Constellation Brands stake by 97.9% in the fourth quarter, reducing its holdings to 1,410 shares worth about $198,000.
• Constellation Brands reported better-than-expected quarterly results, with EPS of $1.90 versus the $1.71 estimate 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, bringing the annualized yield to about 2.9%; analysts currently rate the stock a Moderate Buy with a consensus price target of $175.26.

BLI Banque de Luxembourg Investments trimmed its stake in Constellation Brands Inc (NYSE:STZ - Free Report) by 97.9% during the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 1,410 shares of the company's stock after selling 66,030 shares during the quarter. BLI Banque de Luxembourg Investments' holdings in Constellation Brands were worth $198,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its stake in Constellation Brands by 3.3% in the third quarter. Vanguard Group Inc. now owns 18,202,611 shares of the company's stock valued at $2,451,346,000 after buying an additional 573,766 shares during the last quarter. Capital World Investors lifted its stake in Constellation Brands by 8.3% in the fourth quarter. Capital World Investors now owns 7,238,575 shares of the company's stock valued at $998,740,000 after buying an additional 553,974 shares during the last quarter. Capital International Investors lifted its stake in 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 last quarter. Geode Capital Management LLC lifted its stake in Constellation Brands by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 3,739,549 shares of the company's stock valued at $513,871,000 after buying an additional 54,184 shares during the last quarter. Finally, Grantham Mayo Van Otterloo & Co. LLC lifted its stake in Constellation Brands by 1.0% in the third quarter. Grantham Mayo Van Otterloo & Co. LLC now owns 3,710,940 shares of the company's stock valued at $499,752,000 after buying an additional 35,085 shares during the last quarter. 77.34% of the stock is currently owned by institutional investors.

Constellation Brands Price Performance

Shares of NYSE STZ opened at $139.97 on Wednesday. Constellation Brands Inc has a fifty-two week low of $126.45 and a fifty-two week high of $178.13. The firm's 50-day simple moving average is $150.27 and its 200 day simple moving average is $149.68. The company has a quick ratio of 0.55, a current ratio of 1.08 and a debt-to-equity ratio of 1.16. The stock has a market cap of $24.10 billion, a P/E ratio of 14.60, a P/E/G 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, beating 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 for the quarter, compared to analysts' expectations of $1.84 billion. During the same period in the previous year, the business earned $2.63 earnings per share. The company's revenue was down 11.3% on a year-over-year basis. Equities analysts expect that Constellation Brands Inc will post 11.87 EPS for the current year.

Constellation Brands Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 14th. Shareholders of record on Wednesday, April 29th were given a $1.03 dividend. This represents a $4.12 annualized dividend and a yield of 2.9%. This is a boost from Constellation Brands's previous quarterly dividend of $1.02. The ex-dividend date was Wednesday, April 29th. Constellation Brands's dividend payout ratio (DPR) is presently 42.96%.

Insider Buying and Selling

In other Constellation Brands news, EVP James O. Bourdeau sold 4,407 shares of the business'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 sale, the executive vice president directly owned 9,109 shares in the company, 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 Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 12.45% of the company's stock.

Analyst Upgrades and Downgrades

STZ has been the topic of a number of recent research reports. UBS Group raised their target price on Constellation Brands from $176.00 to $186.00 and gave the company a "buy" rating in a research note on Friday, April 10th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $185.00 target price on shares of Constellation Brands in a research note on Friday, April 10th. Barclays raised their target price on Constellation Brands from $151.00 to $170.00 and gave the company an "equal weight" rating in a research note on Friday, April 10th. Needham & Company LLC lifted 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. Finally, Bank of America cut their price objective on shares of Constellation Brands from $154.00 to $152.00 and set an "underperform" rating on the stock in a research note on Thursday, May 28th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target 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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