iA Global Asset Management Inc. Makes New $3.48 Million Investment in Constellation Brands Inc $STZ

Key Points

• iA Global Asset Management opened a new position in Constellation Brands during the fourth quarter, buying 25,249 shares worth about $3.48 million. The filing also showed broad institutional interest, with hedge funds and other large investors owning a majority of the stock.
• Wall Street sentiment remains broadly positive: several firms recently raised price targets or upgraded the stock, and the consensus rating is “Moderate Buy” with an average target price of $176.30.
• Constellation Brands reported better-than-expected quarterly earnings and revenue, and it also increased its quarterly dividend to $1.03 per share, representing an annualized yield of about 2.9%.

iA Global Asset Management Inc. purchased a new position in Constellation Brands Inc (NYSE:STZ - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 25,249 shares of the company's stock, valued at approximately $3,483,000.

A number of other large investors have also recently made changes to their positions in the stock. Oppenheimer Asset Management Inc. raised its position in shares of Constellation Brands by 329.8% during the third quarter. Oppenheimer Asset Management Inc. now owns 73,323 shares of the company's stock worth $9,874,000 after purchasing an additional 56,263 shares during the period. Hudson Edge Investment Partners Inc. grew its position in shares of Constellation Brands by 22.7% in the 3rd quarter. Hudson Edge Investment Partners Inc. now owns 35,316 shares of the company's stock valued at $4,756,000 after purchasing an additional 6,542 shares during the period. Nordea Investment Management AB grew its position in shares of Constellation Brands by 6.1% in the 4th quarter. Nordea Investment Management AB now owns 867,776 shares of the company's stock valued at $120,300,000 after purchasing an additional 49,625 shares during the period. Cambiar Investors LLC increased its stake in Constellation Brands by 27.5% during the 3rd quarter. Cambiar Investors LLC now owns 227,218 shares of the company's stock worth $30,599,000 after purchasing an additional 48,954 shares in the last quarter. Finally, LSV Asset Management bought a new stake in Constellation Brands during the 3rd quarter worth approximately $33,018,000. 77.34% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

STZ has been the topic of a number of research reports. Roth Mkm reaffirmed a "buy" rating on shares of Constellation Brands in a research note on Thursday, April 9th. TD Cowen upgraded shares of Constellation Brands from a "hold" rating to a "buy" rating and raised their price objective for the stock from $142.00 to $190.00 in a report on Monday, April 13th. Morgan Stanley boosted their price objective on shares of Constellation Brands from $160.00 to $183.00 and gave the company an "equal weight" rating in a research report on Friday, April 10th. JPMorgan Chase & Co. upped their target price on shares of Constellation Brands from $155.00 to $163.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 1st. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Constellation Brands in a report on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $176.30.

Constellation Brands Trading Up 0.1%

Constellation Brands stock opened at $142.55 on Monday. The firm has a 50-day moving average of $152.68 and a 200-day moving average of $148.10. Constellation Brands Inc has a one year low of $126.45 and a one year high of $196.91. The company has a debt-to-equity ratio of 1.16, a current ratio of 1.08 and a quick ratio of 0.55. The company has a market cap of $24.55 billion, a price-to-earnings ratio of 14.86, a P/E/G ratio of 3.12 and a beta of 0.43.

Constellation Brands (NYSE:STZ - Get Free Report) last released its earnings results on Wednesday, April 8th. The company reported $1.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 the consensus estimate of $1.84 billion. During the same quarter in the previous year, the business earned $2.63 earnings per share. Constellation Brands's quarterly revenue was down 11.3% on a year-over-year basis. On average, equities analysts expect that Constellation Brands Inc will post 11.9 earnings per share for the current fiscal year.

Constellation Brands Increases Dividend

The business also recently disclosed 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. The ex-dividend date was Wednesday, April 29th. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.9%. This is an increase from Constellation Brands's previous quarterly dividend of $1.02. Constellation Brands's dividend payout ratio (DPR) is currently 42.96%.

Insider Activity

In other news, EVP James O. Bourdeau sold 4,407 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total value of $631,258.68. Following the completion of the sale, the executive vice president owned 9,109 shares of the company's stock, valued at approximately $1,304,773.16. This represents a 32.61% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 12.45% of the stock is currently owned by corporate insiders.

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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