Heritage Investors Management Corp Sells 27,542 Shares of Constellation Brands Inc $STZ

Key Points

• Heritage Investors Management Corp reduced its Constellation Brands stake by 18.4% in Q4, selling 27,542 shares and leaving it with 122,269 shares valued at about $16.9 million.
• Constellation Brands reported quarterly earnings of $1.90 per share, beating estimates, while revenue came in at $1.92 billion but still declined 11.3% year over year.
• The company raised its quarterly dividend to $1.03 per share, and analysts currently rate the stock Moderate Buy with an average price target of $175.37.

Heritage Investors Management Corp cut its position in Constellation Brands Inc (NYSE:STZ - Free Report) by 18.4% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 122,269 shares of the company's stock after selling 27,542 shares during the quarter. Heritage Investors Management Corp owned approximately 0.07% of Constellation Brands worth $16,868,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Root Financial Partners LLC bought a new position in Constellation Brands in the third quarter worth about $26,000. Stance Capital LLC purchased a new stake in shares of Constellation Brands during the third quarter worth about $26,000. GoalVest Advisory LLC purchased a new stake in shares of Constellation Brands during the fourth quarter worth about $28,000. Elyxium Wealth LLC purchased a new stake in shares of Constellation Brands during the fourth quarter worth about $33,000. Finally, Mowery & Schoenfeld Wealth Management LLC purchased a new stake in shares of Constellation Brands during the fourth quarter worth about $39,000. 77.34% of the stock is currently owned by institutional investors.

Constellation Brands Trading Down 0.2%

Constellation Brands stock opened at $150.86 on Friday. The company has a current ratio of 1.08, a quick ratio of 0.55 and a debt-to-equity ratio of 1.16. Constellation Brands Inc has a 12 month low of $126.45 and a 12 month high of $186.40. The stock's 50 day simple moving average is $152.74 and its two-hundred day simple moving average is $148.60. The firm has a market cap of $25.98 billion, a PE ratio of 15.73, a P/E/G ratio of 3.32 and a beta of 1.75.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings data on Wednesday, April 8th. The company reported $1.90 EPS for the quarter, topping the consensus estimate of $1.71 by $0.19. Constellation Brands had a return on equity of 26.18% and a net margin of 17.29%.The business had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.84 billion. During the same quarter in the prior year, the firm posted $2.63 EPS. The business's quarterly revenue was down 11.3% compared to the same quarter last year. Analysts anticipate that Constellation Brands Inc will post 11.9 earnings per share for the current year.

Constellation Brands Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 14th. Stockholders of record on Wednesday, April 29th were paid a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Wednesday, April 29th. This is a positive change from Constellation Brands's previous quarterly dividend of $1.02. Constellation Brands's dividend payout ratio is currently 42.96%.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. Piper Sandler boosted their price target on Constellation Brands from $146.00 to $160.00 and gave the stock a "neutral" rating in a research note on Friday, April 10th. Roth Mkm reiterated a "buy" rating on shares of Constellation Brands in a research report on Thursday, April 9th. Wells Fargo & Company upped their target price on Constellation Brands from $180.00 to $185.00 and gave the company an "overweight" rating in a research report on Friday, April 10th. JPMorgan Chase & Co. upped their target price on Constellation Brands from $155.00 to $163.00 and gave the company a "neutral" rating in a research report on Wednesday, April 1st. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Constellation Brands in a research report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $175.37.

Insider Buying and Selling at Constellation Brands

In other news, EVP James O. Bourdeau sold 4,407 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total transaction of $631,258.68. Following the completion of the transaction, 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 position. The sale was disclosed in a filing with the SEC, which is available through this link. 12.45% of the stock is currently owned by insiders.

Constellation Brands 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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