First National Trust Co Cuts Stock Holdings in Constellation Brands Inc (NYSE:STZ)

Key Points

• First National Trust Co significantly reduced its stake in Constellation Brands Inc by 54.6%, now holding 4,494 shares valued at $825,000.
• Constellation Brands reported earnings of $3.22 per share, missing analysts’ expectations by $0.23, with revenues down 5.5% compared to the same period last year.
• The company has declared a quarterly dividend of $1.02, set to be paid on August 14th, representing an annualized yield of 2.38% despite a negative payout ratio of -170.71%.

First National Trust Co lowered its stake in shares of Constellation Brands Inc (NYSE:STZ - Free Report) by 54.6% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 4,494 shares of the company's stock after selling 5,394 shares during the quarter. First National Trust Co's holdings in Constellation Brands were worth $825,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of STZ. Brighton Jones LLC increased its position in shares of Constellation Brands by 23.0% during the fourth quarter. Brighton Jones LLC now owns 1,001 shares of the company's stock valued at $221,000 after purchasing an additional 187 shares during the period. Bank Pictet & Cie Europe AG lifted its holdings in shares of Constellation Brands by 39.7% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 6,096 shares of the company's stock worth $1,347,000 after acquiring an additional 1,733 shares during the period. Pictet Asset Management Holding SA boosted its position in shares of Constellation Brands by 1.0% during the 4th quarter. Pictet Asset Management Holding SA now owns 82,748 shares of the company's stock valued at $18,287,000 after acquiring an additional 791 shares in the last quarter. Orion Portfolio Solutions LLC raised its position in Constellation Brands by 2.1% in the fourth quarter. Orion Portfolio Solutions LLC now owns 5,399 shares of the company's stock worth $1,193,000 after purchasing an additional 109 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in Constellation Brands during the fourth quarter valued at approximately $4,180,000. Institutional investors own 77.34% of the company's stock.

Constellation Brands Price Performance

Shares of NYSE:STZ traded up $4.40 during trading on Monday, reaching $170.58. 695,409 shares of the company traded hands, compared to its average volume of 2,455,172. The company has a quick ratio of 0.68, a current ratio of 1.07 and a debt-to-equity ratio of 1.30. Constellation Brands Inc has a 52 week low of $159.35 and a 52 week high of $261.06. The firm has a market capitalization of $30.07 billion, a PE ratio of -71.37, a PEG ratio of 10.06 and a beta of 0.67. The company's 50 day moving average is $170.18 and its two-hundred day moving average is $177.20.

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

Constellation Brands Announces Dividend

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

Analyst Ratings Changes

A number of research analysts have issued reports on the company. Wells Fargo & Company cut their price objective on Constellation Brands from $210.00 to $196.00 and set an "overweight" rating for the company in a report on Wednesday, June 25th. Citigroup raised their price target on Constellation Brands from $170.00 to $174.00 and gave the company a "neutral" rating in a report on Thursday, July 3rd. Needham & Company LLC increased their target price on Constellation Brands from $195.00 to $200.00 and gave the stock a "buy" rating in a report on Thursday, July 3rd. The Goldman Sachs Group set a $225.00 price target on Constellation Brands and gave the company a "buy" rating in a report on Friday, June 27th. Finally, Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Constellation Brands from $191.00 to $185.00 and set a "hold" rating on the stock in a report on Thursday, June 5th. Eleven investment 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 company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $213.74.

Insiders Place Their Bets

In related news, EVP Samuel J. Glaetzer sold 3,150 shares of Constellation Brands 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 completion of the transaction, the executive vice president owned 3,126 shares of the company's stock, valued at $589,376.04. This trade represents a 50.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, 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 stock was sold at an average price of $169.00, for a total transaction of $138,749.00. Following the transaction, the executive vice president directly owned 9,438 shares of the company's stock, valued at $1,595,022. This represents a 8.00% decrease in their position. The disclosure for this sale can be found here. 12.45% of the stock is owned by company insiders.

Constellation Brands 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.