Dillon & Associates Inc. Reduces Position in Constellation Brands Inc (NYSE:STZ)

Key Points

• Dillon & Associates Inc. reduced its position in Constellation Brands Inc by 56.3%, selling 23,013 shares and holding 17,859 shares valued at approximately $3.29 million.
• Constellation Brands reported Q1 earnings of $3.22 per share, missing the consensus estimate of $3.45, with a revenue of $2.52 billion, down 5.5% year-over-year.
• The company announced a quarterly dividend of $1.02 per share, representing an annualized dividend of $4.08 and a yield of 2.4%, with a dividend payout ratio currently at -170.71%.

Dillon & Associates Inc. lessened its stake in shares of Constellation Brands Inc (NYSE:STZ - Free Report) by 56.3% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 17,859 shares of the company's stock after selling 23,013 shares during the quarter. Dillon & Associates Inc.'s holdings in Constellation Brands were worth $3,286,000 at the end of the most recent quarter.

A number of other institutional investors have also recently made changes to their positions in STZ. Piscataqua Savings Bank grew its holdings in Constellation Brands by 1.7% during the 1st quarter. Piscataqua Savings Bank now owns 3,720 shares of the company's stock valued at $683,000 after buying an additional 62 shares in the last quarter. Strategic Financial Concepts LLC grew its holdings in Constellation Brands by 5.8% during the 1st quarter. Strategic Financial Concepts LLC now owns 1,128 shares of the company's stock valued at $207,000 after buying an additional 62 shares in the last quarter. World Investment Advisors grew its holdings in Constellation Brands by 1.7% during the 1st quarter. World Investment Advisors now owns 3,801 shares of the company's stock valued at $698,000 after buying an additional 62 shares in the last quarter. Moody National Bank Trust Division boosted its holdings in shares of Constellation Brands by 0.9% in the 1st quarter. Moody National Bank Trust Division now owns 6,991 shares of the company's stock worth $1,283,000 after purchasing an additional 64 shares during the period. Finally, Bessemer Group Inc. boosted its holdings in shares of Constellation Brands by 3.0% in the 1st quarter. Bessemer Group Inc. now owns 2,242 shares of the company's stock worth $412,000 after purchasing an additional 65 shares during the period. Hedge funds and other institutional investors own 77.34% of the company's stock.

Constellation Brands Trading Down 1.4%

STZ opened at $170.72 on Monday. The firm has a market cap of $30.10 billion, a price-to-earnings ratio of -71.43, a PEG ratio of 10.33 and a beta of 0.67. The company has a current ratio of 1.07, a quick ratio of 0.68 and a debt-to-equity ratio of 1.30. Constellation Brands Inc has a 12 month low of $159.35 and a 12 month high of $261.06. The stock has a fifty day moving average price of $169.13 and a 200-day moving average price of $176.81.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings results on Tuesday, July 1st. The company reported $3.22 EPS for the quarter, missing the consensus estimate of $3.45 by ($0.23). The company had revenue of $2.52 billion during the quarter, compared to the consensus estimate of $2.57 billion. Constellation Brands had a positive return on equity of 31.41% and a negative net margin of 4.11%. The company's revenue was down 5.5% on a year-over-year basis. During the same period in the previous year, the firm posted $3.57 earnings per share. As a group, equities research analysts anticipate that Constellation Brands Inc will post 13.5 earnings per share for the current fiscal year.

Constellation Brands Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 14th. Investors of record on Wednesday, July 30th will be given a dividend of $1.02 per share. This represents a $4.08 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Wednesday, July 30th. Constellation Brands's dividend payout ratio is currently -170.71%.

Insider Activity

In other Constellation Brands news, EVP James O. Bourdeau sold 821 shares of the stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $169.00, for a total value of $138,749.00. Following the completion of the sale, the executive vice president directly owned 9,438 shares in the company, valued at approximately $1,595,022. This trade represents a 8.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Samuel J. Glaetzer sold 3,150 shares of the stock in a transaction dated Tuesday, May 13th. The shares were sold at an average price of $188.54, for a total value of $593,901.00. Following the completion of the sale, the executive vice president owned 3,126 shares of the company's stock, valued at approximately $589,376.04. This trade represents a 50.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 12.45% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently commented on STZ shares. Barclays set a $202.00 target price on Constellation Brands and gave the stock an "overweight" rating in a report on Thursday, June 26th. CJS Securities dropped their target price on Constellation Brands from $196.00 to $194.00 in a report on Monday, May 19th. Bank of America lifted their target price on Constellation Brands from $180.00 to $182.00 and gave the stock a "neutral" rating in a report on Thursday, July 3rd. Wells Fargo & Company dropped their target price on Constellation Brands from $210.00 to $196.00 and set an "overweight" rating for the company in a report on Wednesday, June 25th. Finally, UBS Group lifted their target price on Constellation Brands from $195.00 to $205.00 and gave the stock a "buy" rating in a report on Thursday, July 3rd. Eleven research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $213.74.

About Constellation Brands

Constellation Brands, Inc, together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands.

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