Fayez Sarofim & Co Lowers Holdings in Constellation Brands Inc (NYSE:STZ)

Key Points

• Fayez Sarofim & Co has reduced its holdings in Constellation Brands Inc by 19.8%, now owning 12,350 shares worth approximately $2.27 million.
• Constellation Brands' quarterly earnings fell short of expectations, reporting $3.22 EPS compared to the consensus estimate of $3.45, with a 5.5% year-over-year revenue decline.
• The company has declared a quarterly dividend of $1.02, with a scheduled payment date of August 14th and an annualized dividend yield of 2.4%.

Fayez Sarofim & Co lowered its holdings in Constellation Brands Inc (NYSE:STZ - Free Report) by 19.8% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 12,350 shares of the company's stock after selling 3,040 shares during the period. Fayez Sarofim & Co's holdings in Constellation Brands were worth $2,266,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Piscataqua Savings Bank increased its position in shares of Constellation Brands by 1.7% during the first quarter. Piscataqua Savings Bank now owns 3,720 shares of the company's stock worth $683,000 after acquiring an additional 62 shares during the period. Strategic Financial Concepts LLC grew its stake in Constellation Brands by 5.8% during the 1st quarter. Strategic Financial Concepts LLC now owns 1,128 shares of the company's stock worth $207,000 after purchasing an additional 62 shares in the last quarter. World Investment Advisors increased 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 worth $698,000 after purchasing an additional 62 shares during the period. Moody National Bank Trust Division increased its holdings in Constellation Brands by 0.9% during 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. raised its position in Constellation Brands by 3.0% in the 1st quarter. Bessemer Group Inc. now owns 2,242 shares of the company's stock valued at $412,000 after purchasing an additional 65 shares in the last quarter. 77.34% of the stock is owned by hedge funds and other institutional investors.

Constellation Brands Stock Up 2.3%

Constellation Brands stock opened at $173.09 on Friday. The company has a market capitalization of $30.51 billion, a P/E ratio of -72.42, a PEG ratio of 10.24 and a beta of 1.75. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.68 and a current ratio of 1.07. Constellation Brands Inc has a fifty-two week low of $159.35 and a fifty-two week high of $261.06. The stock has a 50-day simple moving average of $169.28 and a 200-day simple moving average of $176.93.

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 firm had revenue of $2.52 billion for the quarter, compared to analyst estimates 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 quarterly revenue was down 5.5% on a year-over-year basis. During the same period last year, the firm earned $3.57 EPS. Equities research analysts expect that Constellation Brands Inc will post 13.5 earnings per share for the current year.

Constellation Brands Dividend Announcement

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

Analyst Ratings Changes

A number of equities analysts have recently commented on STZ shares. Deutsche Bank Aktiengesellschaft lowered their price objective on Constellation Brands from $191.00 to $185.00 and set a "hold" rating for the company in a research report on Thursday, June 5th. The Goldman Sachs Group set a $225.00 price target on shares of Constellation Brands and gave the stock a "buy" rating in a research note on Friday, June 27th. Jefferies Financial Group upgraded shares of Constellation Brands from a "hold" rating to a "buy" rating and boosted their price target for the stock from $194.00 to $205.00 in a report on Monday, July 7th. Citigroup increased their price objective on shares of Constellation Brands from $170.00 to $174.00 and gave the company a "neutral" rating in a research report on Thursday, July 3rd. Finally, Needham & Company LLC lifted their price objective on shares of Constellation Brands from $195.00 to $200.00 and gave the stock a "buy" rating in a research report on Thursday, July 3rd. Eleven research analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $213.74.

Insiders Place Their Bets

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

Constellation Brands Company Profile

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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