Intech Investment Management LLC Boosts Stake in Constellation Brands Inc $STZ

Key Points

• Intech Investment Management LLC significantly increased its stake in Constellation Brands by 1,785.9% during the first quarter, owning 59,443 shares valued at approximately $10.9 million.
• Constellation Brands reported earnings of $3.22 per share in its latest quarterly results, missing analyst estimates by 23 cents and showing a 5.5% decline in revenue year-over-year.
• The company recently declared a quarterly dividend of $1.02 per share, representing an annualized yield of 2.9%, despite a notably negative dividend payout ratio of -170.71%.

Intech Investment Management LLC grew its stake in Constellation Brands Inc (NYSE:STZ - Free Report) by 1,785.9% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 59,443 shares of the company's stock after buying an additional 56,291 shares during the period. Intech Investment Management LLC's holdings in Constellation Brands were worth $10,909,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. Piscataqua Savings Bank increased its stake in shares of Constellation Brands by 1.7% in 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 increased its stake in shares of Constellation Brands by 5.8% in the first quarter. Strategic Financial Concepts LLC now owns 1,128 shares of the company's stock worth $207,000 after acquiring an additional 62 shares during the period. World Investment Advisors increased its stake in shares of Constellation Brands by 1.7% in the first quarter. World Investment Advisors now owns 3,801 shares of the company's stock worth $698,000 after acquiring an additional 62 shares during the period. Moody National Bank Trust Division increased its stake in shares of Constellation Brands by 0.9% in the first quarter. Moody National Bank Trust Division now owns 6,991 shares of the company's stock worth $1,283,000 after acquiring an additional 64 shares during the period. Finally, Bessemer Group Inc. increased its stake in shares of Constellation Brands by 3.0% in the first quarter. Bessemer Group Inc. now owns 2,242 shares of the company's stock worth $412,000 after acquiring an additional 65 shares during the period. Institutional investors and hedge funds own 77.34% of the company's stock.

Constellation Brands Price Performance

STZ traded down $3.46 during midday trading on Friday, hitting $139.52. 2,445,127 shares of the company traded hands, compared to its average volume of 2,579,424. The company has a current ratio of 1.07, a quick ratio of 0.68 and a debt-to-equity ratio of 1.30. The company has a market capitalization of $24.60 billion, a price-to-earnings ratio of -58.38, a PEG ratio of 0.43 and a beta of 0.67. Constellation Brands Inc has a 52-week low of $139.45 and a 52-week high of $261.06. The business has a 50 day simple moving average of $164.56 and a two-hundred day simple moving average of $174.13.

Constellation Brands (NYSE:STZ - Get Free Report) last posted its quarterly earnings data on Tuesday, July 1st. The company reported $3.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.45 by ($0.23). The company had revenue of $2.52 billion for the quarter, compared to analysts' expectations of $2.57 billion. Constellation Brands had a negative net margin of 4.11% and a positive return on equity of 31.41%. The business's revenue for the quarter was down 5.5% on a year-over-year basis. During the same period in the previous year, the business earned $3.57 earnings per share. Constellation Brands has set its FY 2026 guidance at 12.600-12.900 EPS. On average, equities analysts forecast that Constellation Brands Inc will post 13.5 earnings per share for the current fiscal year.

Constellation Brands Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 14th. Stockholders of record on Wednesday, July 30th were paid a $1.02 dividend. This represents a $4.08 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend was Wednesday, July 30th. Constellation Brands's dividend payout ratio (DPR) is currently -170.71%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on STZ. Citigroup cut their price objective on shares of Constellation Brands from $174.00 to $155.00 and set a "neutral" rating on the stock in a research note on Thursday, September 4th. Bank of America cut their price objective on shares of Constellation Brands from $150.00 to $142.00 and set an "underperform" rating on the stock in a research note on Wednesday, September 3rd. Wells Fargo & Company dropped their price target on shares of Constellation Brands from $196.00 to $170.00 and set an "overweight" rating on the stock in a research report on Wednesday, September 3rd. The Goldman Sachs Group dropped their price target on shares of Constellation Brands from $225.00 to $196.00 and set a "buy" rating on the stock in a research report on Tuesday, September 2nd. Finally, BMO Capital Markets dropped their price target on shares of Constellation Brands from $215.00 to $190.00 and set an "outperform" rating on the stock in a research report on Thursday, September 4th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $192.28.

Insider Buying and Selling at Constellation Brands

In other news, EVP James O. Bourdeau sold 821 shares of the firm's stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $169.00, for a total value of $138,749.00. Following the transaction, the executive vice president directly owned 9,438 shares of the company's stock, valued at approximately $1,595,022. This trade represents a 8.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Corporate insiders own 12.45% of the company's stock.

About Constellation Brands

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.