Dimensional Fund Advisors LP Grows Position in Constellation Brands Inc $STZ

Key Points

• Dimensional Fund Advisors LP increased its stake in Constellation Brands by 5.1% in the first quarter, ending with 1,826,652 shares worth about $274 million.
• Wall Street sentiment remains mixed: analysts have a consensus "Hold" rating on STZ with an average price target of $167.53, though several firms recently trimmed their targets.
• Constellation Brands reported quarterly EPS of $3.43, missing estimates, while revenue of $2.43 billion slightly beat expectations; the company also declared a $1.03 quarterly dividend payable August 13.

Dimensional Fund Advisors LP grew its position in Constellation Brands Inc (NYSE:STZ - Free Report) by 5.1% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,826,652 shares of the company's stock after purchasing an additional 88,538 shares during the period. Dimensional Fund Advisors LP owned approximately 1.06% of Constellation Brands worth $274,029,000 as of its most recent SEC filing.

A number of other institutional investors have also modified their holdings of STZ. Choreo LLC lifted its position in Constellation Brands by 2.1% during the fourth quarter. Choreo LLC now owns 3,116 shares of the company's stock valued at $437,000 after buying an additional 63 shares in the last quarter. HM Payson & Co. grew its stake in Constellation Brands by 10.0% during the fourth quarter. HM Payson & Co. now owns 701 shares of the company's stock worth $97,000 after buying an additional 64 shares during the period. Clearstead Trust LLC increased its position in shares of Constellation Brands by 14.2% in the fourth quarter. Clearstead Trust LLC now owns 548 shares of the company's stock worth $76,000 after acquiring an additional 68 shares in the last quarter. Johnson Financial Group Inc. increased its position in shares of Constellation Brands by 24.9% in the fourth quarter. Johnson Financial Group Inc. now owns 346 shares of the company's stock worth $48,000 after acquiring an additional 69 shares in the last quarter. Finally, HB Wealth Management LLC raised its stake in shares of Constellation Brands by 0.7% in the 1st quarter. HB Wealth Management LLC now owns 10,795 shares of the company's stock valued at $1,619,000 after acquiring an additional 72 shares during the period. Hedge funds and other institutional investors own 77.34% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on STZ shares. BMO Capital Markets restated an "outperform" rating and set a $190.00 target price on shares of Constellation Brands in a report on Thursday, July 2nd. Barclays lowered their price target on Constellation Brands from $139.00 to $132.00 and set an "equal weight" rating for the company in a report on Tuesday. Morgan Stanley cut their price objective on Constellation Brands from $183.00 to $158.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 2nd. UBS Group reduced their price objective on Constellation Brands from $186.00 to $175.00 and set a "buy" rating on the stock in a research note on Wednesday, June 17th. Finally, Piper Sandler reaffirmed a "neutral" rating and issued a $160.00 target price on shares of Constellation Brands in a research report on Wednesday, July 1st. Eleven research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $167.53.

Insider Activity

In related news, EVP James O. Bourdeau sold 4,407 shares of the company's stock in a transaction on 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 of the company's stock, valued at $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 SEC, which is accessible through this link. Company insiders own 12.20% of the company's stock.

Constellation Brands Stock Up 0.9%

Shares of Constellation Brands stock opened at $131.90 on Thursday. Constellation Brands Inc has a 1-year low of $126.45 and a 1-year high of $178.13. The company has a market capitalization of $22.53 billion, a PE ratio of 12.59, a P/E/G ratio of 4.07 and a beta of 0.39. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.91 and a quick ratio of 0.48. The business has a 50-day moving average of $139.94 and a 200-day moving average of $149.44.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 EPS for the quarter, missing the consensus estimate of $3.70 by ($0.27). Constellation Brands had a return on equity of 25.58% and a net margin of 18.87%.The business had revenue of $2.43 billion during the quarter, compared to analyst estimates of $2.39 billion. During the same quarter last year, the firm posted $3.22 EPS. The company's revenue was down 3.3% 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 analysts forecast that Constellation Brands Inc will post 11.82 EPS for the current fiscal year.

Constellation Brands Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Investors of record on Thursday, July 30th will be paid a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date is Thursday, July 30th. Constellation Brands's payout ratio is 39.31%.

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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