Fifth Third Bancorp Acquires 25,406 Shares of Constellation Brands Inc $STZ

Key Points

• Fifth Third Bancorp boosted its Constellation Brands stake by 251.6% in the first quarter, buying 25,406 additional shares and bringing its total holdings to 35,503 shares worth about $5.33 million.
• Constellation Brands reported Q1 earnings of $3.43 per share, missing estimates, while revenue came in at $2.43 billion, slightly above expectations but down 3.3% from a year earlier.
• The company declared a quarterly dividend of $1.03 per share and saw mixed Wall Street sentiment, with analysts’ consensus rating at Hold and an average price target of $167.89.

Fifth Third Bancorp grew its holdings in Constellation Brands Inc (NYSE:STZ - Free Report) by 251.6% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 35,503 shares of the company's stock after purchasing an additional 25,406 shares during the period. Fifth Third Bancorp's holdings in Constellation Brands were worth $5,325,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of the business. MV Capital Management Inc. acquired a new stake in shares of Constellation Brands in the 4th quarter valued at approximately $26,000. Stance Capital LLC bought a new position in Constellation Brands in the 3rd quarter valued at approximately $26,000. Strive Financial Group LLC bought a new position in Constellation Brands in the 4th quarter valued at approximately $27,000. GoalVest Advisory LLC acquired a new stake in Constellation Brands in the fourth quarter valued at approximately $28,000. Finally, Cedar Mountain Advisors LLC acquired a new stake in Constellation Brands in the first quarter valued at approximately $33,000. Institutional investors and hedge funds own 77.34% of the company's stock.

Insider Activity

In related news, EVP James O. Bourdeau sold 4,407 shares of the company's stock in a transaction that occurred 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 transaction, the executive vice president directly owned 9,109 shares in the company, valued at approximately $1,304,773.16. This represents a 32.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 12.20% of the company's stock.

Constellation Brands Stock Down 1.9%

STZ stock opened at $133.16 on Friday. The stock's fifty day simple moving average is $140.50 and its two-hundred day simple moving average is $149.50. The company has a current ratio of 0.91, a quick ratio of 0.48 and a debt-to-equity ratio of 1.06. The stock has a market cap of $22.74 billion, a P/E ratio of 12.71, a P/E/G ratio of 4.23 and a beta of 0.39. Constellation Brands Inc has a 1-year low of $126.45 and a 1-year high of $178.13.

Constellation Brands (NYSE:STZ - Get Free Report) last posted its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share for the quarter, missing the consensus estimate of $3.70 by ($0.27). Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The company had revenue of $2.43 billion for the quarter, compared to the consensus estimate of $2.39 billion. During the same quarter in the previous year, the company posted $3.22 EPS. Constellation Brands's quarterly 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. Analysts expect that Constellation Brands Inc will post 11.82 EPS for the current year.

Constellation Brands Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Stockholders of record on Thursday, July 30th will be given a dividend of $1.03 per share. 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%.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. JPMorgan Chase & Co. lowered their price target on shares of Constellation Brands from $169.00 to $165.00 and set a "neutral" rating for the company in a report on Thursday, July 2nd. Freedom Capital downgraded Constellation Brands from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 1st. Bank of America reduced their price objective on Constellation Brands from $152.00 to $145.00 and set an "underperform" rating on the stock in a research report on Thursday, July 2nd. TD Cowen reaffirmed a "buy" rating and issued a $174.00 target price on shares of Constellation Brands in a report on Wednesday, July 1st. Finally, Barclays dropped their target price on Constellation Brands from $170.00 to $139.00 and set an "equal weight" rating for the company in a research report on Thursday, July 2nd. Eleven analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $167.89.

About Constellation Brands

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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