Constellation Brands Inc $STZ Position Lifted by Coerente Capital Management

Key Points

• Coerente Capital Management increased its stake in Constellation Brands by 42.5% in the first quarter, bringing its holdings to 109,715 shares worth about $16.5 million.
• Constellation Brands reported quarterly EPS of $1.90, topping analyst expectations, and revenue of $1.92 billion, also ahead of estimates, though revenue fell 11.3% year over year.
• The company raised its quarterly dividend to $1.03 per share, while analysts currently maintain a Moderate Buy consensus with an average price target of $173.53.

Coerente Capital Management grew its stake in shares of Constellation Brands Inc (NYSE:STZ - Free Report) by 42.5% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 109,715 shares of the company's stock after acquiring an additional 32,729 shares during the period. Constellation Brands comprises approximately 3.1% of Coerente Capital Management's holdings, making the stock its 18th biggest position. Coerente Capital Management owned 0.06% of Constellation Brands worth $16,457,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors also recently modified their holdings of the company. Capital World Investors lifted its position in shares of Constellation Brands by 8.3% during the fourth quarter. Capital World Investors now owns 7,238,575 shares of the company's stock worth $998,740,000 after purchasing an additional 553,974 shares during the last quarter. State Street Corp increased its holdings in Constellation Brands by 5.0% in the fourth quarter. State Street Corp now owns 6,911,369 shares of the company's stock valued at $953,492,000 after buying an additional 329,337 shares during the last quarter. Capital International Investors increased its holdings 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. Wellington Management Group LLP raised its stake in Constellation Brands by 14.0% during the fourth quarter. Wellington Management Group LLP now owns 6,018,653 shares of the company's stock valued at $830,333,000 after buying an additional 739,393 shares in the last quarter. Finally, Geode Capital Management LLC raised its stake in Constellation Brands by 1.5% during 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 in the last quarter. Institutional investors own 77.34% of the company's stock.

Constellation Brands Trading Up 1.5%

Shares of NYSE STZ opened at $143.58 on Wednesday. The company has a market cap of $24.72 billion, a price-to-earnings ratio of 14.97, a price-to-earnings-growth ratio of 4.15 and a beta of 0.39. Constellation Brands Inc has a 12-month low of $126.45 and a 12-month high of $178.13. The company has a current ratio of 1.08, a quick ratio of 0.55 and a debt-to-equity ratio of 1.16. The stock's 50 day simple moving average is $148.07 and its 200 day simple moving average is $150.27.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings data on Wednesday, April 8th. The company reported $1.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.71 by $0.19. The business had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.84 billion. Constellation Brands had a return on equity of 26.18% and a net margin of 17.29%.The business's revenue for the quarter was down 11.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.63 EPS. Equities research analysts expect that Constellation Brands Inc will post 11.84 EPS for the current year.

Constellation Brands Increases Dividend

The company also recently declared 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. This is an increase from Constellation Brands's previous quarterly dividend of $1.02. This represents a $4.12 annualized dividend and a dividend yield of 2.9%. The ex-dividend date was Wednesday, April 29th. Constellation Brands's payout ratio is currently 42.96%.

Wall Street Analyst Weigh In

A number of research analysts have commented on STZ shares. Morgan Stanley increased their target price on Constellation Brands from $160.00 to $183.00 and gave the stock an "equal weight" rating in a report on Friday, April 10th. Needham & Company LLC boosted their price target on Constellation Brands from $180.00 to $185.00 and gave the company a "buy" rating in a report on Friday, April 10th. Evercore set a $175.00 price target on Constellation Brands and gave the company an "outperform" rating in a research report on Friday, April 10th. JPMorgan Chase & Co. lifted their price objective on shares of Constellation Brands from $155.00 to $163.00 and gave the stock a "neutral" rating in a report on Wednesday, April 1st. Finally, Deutsche Bank Aktiengesellschaft boosted their target price on shares of Constellation Brands from $154.00 to $155.00 and gave the company a "hold" rating in a research note on Friday, April 10th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $173.53.

Insider Activity at Constellation Brands

In other news, EVP James O. Bourdeau sold 4,407 shares of the company's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $143.24, for a total transaction of $631,258.68. Following the completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 12.20% of the company's stock.

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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