Constellation Brands Inc $STZ Shares Acquired by OLD Republic International Corp

Key Points

• OLD Republic International increased its stake in Constellation Brands by 76.7% in the fourth quarter, buying an additional 84,000 shares and bringing its total holding to 193,500 shares worth about $26.7 million.
• Wall Street analysts have turned more constructive on STZ, with several firms raising price targets and TD Cowen upgrading the stock to buy; the current consensus rating is Moderate Buy with a target price of $175.37.
• Constellation Brands recently beat earnings expectations, reporting $1.90 EPS on revenue of $1.92 billion, and it also raised its quarterly dividend to $1.03 per share from $1.02.

OLD Republic International Corp lifted its position in shares of Constellation Brands Inc (NYSE:STZ - Free Report) by 76.7% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 193,500 shares of the company's stock after purchasing an additional 84,000 shares during the period. OLD Republic International Corp owned about 0.11% of Constellation Brands worth $26,695,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in STZ. Root Financial Partners LLC purchased a new position in shares of Constellation Brands during the third quarter worth about $26,000. Stance Capital LLC purchased a new position in shares of Constellation Brands during the third quarter worth about $26,000. GoalVest Advisory LLC purchased a new position in shares of Constellation Brands during the fourth quarter worth about $28,000. Elyxium Wealth LLC purchased a new position in shares of Constellation Brands during the fourth quarter worth about $33,000. Finally, Mowery & Schoenfeld Wealth Management LLC purchased a new position in shares of Constellation Brands during the fourth quarter worth about $39,000. Hedge funds and other institutional investors own 77.34% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on STZ shares. Morgan Stanley raised their price target on Constellation Brands from $160.00 to $183.00 and gave the stock an "equal weight" rating in a report on Friday, April 10th. Barclays raised their price target on Constellation Brands from $151.00 to $170.00 and gave the stock an "equal weight" rating in a report on Friday, April 10th. Roth Mkm reissued a "buy" rating on shares of Constellation Brands in a report on Thursday, April 9th. TD Cowen raised Constellation Brands from a "hold" rating to a "buy" rating and raised their price target for the stock from $142.00 to $190.00 in a report on Monday, April 13th. Finally, Needham & Company LLC raised their price target on Constellation Brands from $180.00 to $185.00 and gave the stock a "buy" rating in a report on Friday, April 10th. One investment 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 company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $175.37.

Constellation Brands Price Performance

Constellation Brands stock opened at $149.50 on Friday. The company has a market cap of $25.74 billion, a P/E ratio of 15.59, a price-to-earnings-growth ratio of 3.28 and a beta of 0.43. Constellation Brands Inc has a one year low of $126.45 and a one year high of $186.40. The business has a fifty day moving average of $152.73 and a two-hundred day moving average of $148.61. 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 issued its earnings results on Wednesday, April 8th. The company reported $1.90 EPS for the quarter, topping the consensus estimate of $1.71 by $0.19. The company had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.84 billion. Constellation Brands had a net margin of 17.29% and a return on equity of 26.18%. The business's revenue was down 11.3% on a year-over-year basis. During the same period in the previous year, the firm earned $2.63 EPS. As a group, analysts predict that Constellation Brands Inc will post 11.9 earnings per share for the current fiscal 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 paid a dividend of $1.03 per share. This is a positive change from Constellation Brands's previous quarterly dividend of $1.02. The ex-dividend date of this dividend was Wednesday, April 29th. This represents a $4.12 annualized dividend and a dividend yield of 2.8%. Constellation Brands's dividend payout ratio is presently 42.96%.

Insider Activity at Constellation Brands

In other news, EVP James O. Bourdeau sold 4,407 shares of the business's stock in a transaction that occurred 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 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 legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 12.45% of the stock is owned by company insiders.

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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