Jefferies Financial Group Inc. Grows Stock Holdings in Constellation Brands Inc (NYSE:STZ)

Key Points

• Jefferies Financial Group Inc. has increased its stake in Constellation Brands by 43.3%, now owning 6,122 shares valued at approximately $1.12 million.
• Analysts have set varied price targets for Constellation Brands, with a consensus target price of $213.74, indicating a "Moderate Buy" rating among analysts.
• Constellation Brands recently declared a quarterly dividend of $1.02, reflecting an annualized yield of 2.4%, although the company has a high dividend payout ratio of -170.71%.

Jefferies Financial Group Inc. boosted its holdings in shares of Constellation Brands Inc (NYSE:STZ - Free Report) by 43.3% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 6,122 shares of the company's stock after buying an additional 1,851 shares during the quarter. Jefferies Financial Group Inc.'s holdings in Constellation Brands were worth $1,123,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. Piscataqua Savings Bank raised its holdings in shares of Constellation Brands by 1.7% in the 1st quarter. Piscataqua Savings Bank now owns 3,720 shares of the company's stock valued at $683,000 after purchasing an additional 62 shares in the last quarter. Strategic Financial Concepts LLC raised its holdings in shares of Constellation Brands by 5.8% in the 1st quarter. Strategic Financial Concepts LLC now owns 1,128 shares of the company's stock valued at $207,000 after purchasing an additional 62 shares in the last quarter. World Investment Advisors raised its holdings in shares of Constellation Brands by 1.7% in the 1st quarter. World Investment Advisors now owns 3,801 shares of the company's stock valued at $698,000 after purchasing an additional 62 shares in the last quarter. Moody National Bank Trust Division raised its holdings in shares of Constellation Brands by 0.9% in the 1st quarter. Moody National Bank Trust Division now owns 6,991 shares of the company's stock valued at $1,283,000 after purchasing an additional 64 shares in the last quarter. Finally, Bessemer Group Inc. raised its holdings in shares of Constellation Brands by 3.0% in the 1st quarter. Bessemer Group Inc. now owns 2,242 shares of the company's stock valued at $412,000 after purchasing an additional 65 shares in the last quarter. 77.34% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on STZ. Cowen restated a "hold" rating on shares of Constellation Brands in a report on Monday, July 7th. Piper Sandler lifted their price target on shares of Constellation Brands from $165.00 to $170.00 and gave the stock a "neutral" rating in a research note on Friday, June 6th. Bank of America lifted their price target on shares of Constellation Brands from $180.00 to $182.00 and gave the stock a "neutral" rating in a research note on Thursday, July 3rd. Roth Capital cut their price target on shares of Constellation Brands from $256.00 to $239.00 and set a "buy" rating on the stock in a research note on Tuesday, May 20th. Finally, Royal Bank Of Canada dropped their price objective on shares of Constellation Brands from $289.00 to $233.00 and set an "outperform" rating on the stock in a research note on Monday, April 14th. Eleven research 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. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $213.74.

Constellation Brands Price Performance

Shares of NYSE STZ traded down $1.21 on Wednesday, hitting $169.44. The company's stock had a trading volume of 1,306,212 shares, compared to its average volume of 2,444,180. Constellation Brands Inc has a 12-month low of $159.35 and a 12-month high of $261.06. The company has a market capitalization of $29.87 billion, a price-to-earnings ratio of -70.89, a price-to-earnings-growth ratio of 10.31 and a beta of 0.67. The company has a debt-to-equity ratio of 1.30, a current ratio of 1.07 and a quick ratio of 0.68. The stock has a 50 day moving average of $169.60 and a 200-day moving average of $177.06.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its quarterly earnings results 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). 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 analysts' expectations of $2.57 billion. During the same period last year, the company earned $3.57 EPS. The firm's revenue for the quarter was down 5.5% on a year-over-year basis. As a group, research analysts predict that Constellation Brands Inc will post 13.5 EPS for the current year.

Constellation Brands Announces Dividend

The firm 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 $1.02 dividend. This represents a $4.08 annualized dividend and a yield of 2.4%. The ex-dividend date is Wednesday, July 30th. Constellation Brands's dividend payout ratio is presently -170.71%.

Insider Buying and Selling at Constellation Brands

In related news, EVP James O. Bourdeau sold 821 shares of the company's stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $169.00, for a total transaction of $138,749.00. Following the completion of the transaction, the executive vice president owned 9,438 shares of the company's stock, valued at approximately $1,595,022. This represents a 8.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Samuel J. Glaetzer sold 3,150 shares of the business's 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 sale, the executive vice president directly owned 3,126 shares of the company's stock, valued at $589,376.04. This represents a 50.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. 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.