LSV Asset Management Grows Stake in Constellation Brands Inc $STZ

Key Points

• LSV Asset Management more than doubled its position in Constellation Brands during the fourth quarter, buying an additional 250,000 shares and lifting its stake to 495,180 shares worth about $68.3 million.
• Constellation Brands reported better-than-expected quarterly results, posting EPS of $1.90 versus estimates of $1.71 and revenue of $1.92 billion versus $1.84 billion expected, though revenue still fell 11.3% year over year.
• The company raised its quarterly dividend to $1.03 per share from $1.02, while analysts currently hold a Moderate Buy consensus with a $175.37 average price target.

LSV Asset Management raised its stake in Constellation Brands Inc (NYSE:STZ - Free Report) by 102.0% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 495,180 shares of the company's stock after acquiring an additional 250,000 shares during the quarter. LSV Asset Management owned approximately 0.29% of Constellation Brands worth $68,315,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in STZ. Brighton Jones LLC raised its position in shares of Constellation Brands by 23.0% in 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. Woodline Partners LP bought a new stake in shares of Constellation Brands in the first quarter valued at approximately $2,409,000. Cary Street Partners Financial LLC raised its position in shares of Constellation Brands by 69.9% in the second quarter. Cary Street Partners Financial LLC now owns 1,026 shares of the company's stock valued at $167,000 after purchasing an additional 422 shares during the period. Bank of Nova Scotia increased its holdings in Constellation Brands by 3.6% during the 2nd quarter. Bank of Nova Scotia now owns 17,347 shares of the company's stock worth $2,822,000 after acquiring an additional 599 shares during the period. Finally, Daiwa Securities Group Inc. increased its holdings in Constellation Brands by 5.0% during the 2nd quarter. Daiwa Securities Group Inc. now owns 23,732 shares of the company's stock worth $3,861,000 after acquiring an additional 1,127 shares during the period. 77.34% of the stock is currently owned by hedge funds and other institutional investors.

Constellation Brands Price Performance

Shares of Constellation Brands stock opened at $149.50 on Friday. Constellation Brands Inc has a 52-week low of $126.45 and a 52-week high of $186.40. The stock has a market capitalization of $25.74 billion, a price-to-earnings ratio of 15.59, a price-to-earnings-growth ratio of 3.28 and a beta of 0.43. The company has a fifty day moving average of $152.73 and a 200-day moving average of $148.61. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.55 and a current ratio of 1.08.

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

Constellation Brands Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 14th. Shareholders of record on Wednesday, April 29th were given a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Wednesday, April 29th. This is an increase from Constellation Brands's previous quarterly dividend of $1.02. Constellation Brands's dividend payout ratio is currently 42.96%.

Insiders Place Their Bets

In other Constellation Brands news, EVP James O. Bourdeau sold 4,407 shares of the stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $143.24, for a total transaction 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 $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 at the SEC website. 12.45% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Deutsche Bank Aktiengesellschaft upped their target price on shares of Constellation Brands from $154.00 to $155.00 and gave the stock a "hold" rating in a report on Friday, April 10th. Citigroup reaffirmed a "buy" rating on shares of Constellation Brands in a report on Monday, May 18th. TD Cowen raised shares of Constellation Brands from a "hold" rating to a "buy" rating and upped their target price for the stock from $142.00 to $190.00 in a report on Monday, April 13th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Constellation Brands in a report on Monday, May 4th. Finally, UBS Group upped their target price on shares of Constellation Brands from $176.00 to $186.00 and gave the stock a "buy" rating in a report on Friday, April 10th. 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. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $175.37.

About Constellation Brands

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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