Constellation Brands Inc $STZ Stake Lifted by Pzena Investment Management LLC

Key Points

• Pzena Investment Management increased its Constellation Brands stake by 4.2% in the third quarter, adding 25,129 shares to reach 624,443 shares, valued at about $70.6 million.
• Constellation reported quarterly EPS of $3.74, beating the $3.62 consensus, while revenue rose 6.1% year over year to $2.63 billion. The company set FY 2027 EPS guidance of $11.20–$11.90.
• Analysts’ consensus rating was Hold, with an average price target of $154.09. The company also declared a $1.03 quarterly dividend, equivalent to a 2.8% yield at the article’s cited share price.

Pzena Investment Management LLC grew its stake in shares of Constellation Brands Inc (NYSE:STZ - Free Report) by 4.2% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 624,443 shares of the company's stock after acquiring an additional 25,129 shares during the period. Pzena Investment Management LLC owned about 0.37% of Constellation Brands worth $70,600,000 at the end of the most recent reporting period.

A number of other hedge funds also recently modified their holdings of STZ. Nykredit A S purchased a new stake in Constellation Brands in the second quarter worth $83,687,000. Diamond Hill Capital Management LLC Investment Advisor bought a new stake in shares of Constellation Brands in the second quarter valued at $31,582,000. Assenagon Asset Management S.A. lifted its position in shares of Constellation Brands by 197.7% during the 2nd quarter. Assenagon Asset Management S.A. now owns 338,172 shares of the company's stock valued at $47,036,000 after buying an additional 224,578 shares during the last quarter. Junto Capital Management LP purchased a new position in shares of Constellation Brands during the 2nd quarter valued at $21,683,000. Finally, Bank of America Corp DE grew its stake in shares of Constellation Brands by 9.5% during the 1st quarter. Bank of America Corp DE now owns 1,403,275 shares of the company's stock worth $210,491,000 after acquiring an additional 121,515 shares during the period. Institutional investors own 77.34% of the company's stock.

Constellation Brands Stock Performance

NYSE STZ opened at $145.77 on Thursday. Constellation Brands Inc has a 52-week low of $110.60 and a 52-week high of $168.60. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.53 and a current ratio of 1.00. The company has a market capitalization of $24.67 billion, a P/E ratio of 13.07, a P/E/G ratio of 2.83 and a beta of 0.39. The company has a fifty day moving average of $125.70 and a 200-day moving average of $141.63.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its earnings results on Tuesday, October 6th. The company reported $3.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.62 by $0.12. Constellation Brands had a net margin of 19.57% and a return on equity of 24.75%. The company had revenue of $2.63 billion during the quarter, compared to analyst estimates of $2.54 billion. During the same period in the previous year, the business earned $3.63 earnings per share. The firm's quarterly revenue was up 6.1% compared to the same quarter last year. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, equities research analysts predict that Constellation Brands Inc will post 11.85 EPS for the current fiscal year.

Constellation Brands Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be paid a $1.03 dividend. The ex-dividend date of this dividend is Friday, October 30th. This represents a $4.12 annualized dividend and a yield of 2.8%. Constellation Brands's dividend payout ratio is currently 36.95%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the company. Barclays lowered their price objective on Constellation Brands from $132.00 to $122.00 and set an "equal weight" rating on the stock in a research note on Tuesday, September 22nd. Piper Sandler set a $125.00 price objective on shares of Constellation Brands in a research note on Thursday, October 8th. Deutsche Bank Aktiengesellschaft lowered their target price on shares of Constellation Brands from $136.00 to $127.00 and set a "hold" rating on the stock in a report on Thursday, October 8th. Raymond James Financial set a $150.00 target price on Constellation Brands in a research report on Thursday, September 17th. Finally, Citigroup reaffirmed a "negative" rating on shares of Constellation Brands in a report on Wednesday, October 7th. Twelve analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $154.09.

Constellation Brands Profile

Constellation Brands, Inc is a beverage alcohol company that develops, produces, markets and distributes beer, wine and spirits. Its beer portfolio includes Modelo Especial, Corona Extra, Corona Light, Pacifico and Victoria, while its wine and spirits brands include Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company, Simi, Ruffino, High West and Casa Noble.

The company's beer business is primarily focused on the United States, where Constellation markets and distributes several leading Mexican beer brands under license from Grupo Modelo.

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