Mmbg Investment Advisors CO. Reduces Stock Position in Constellation Brands Inc $STZ

Key Points

• Mmbg Investment Advisors cut its Constellation Brands stake by 86% in the fourth quarter, selling 23,011 shares and ending with 3,740 shares valued at about $516,000.
• Other institutional investors remain heavily involved, with hedge funds and institutions holding 77.34% of the company; several firms recently increased their positions significantly.
• Analyst sentiment is mixed but generally positive, with a Moderate Buy consensus and a target price of $175.37. Constellation also beat quarterly EPS and revenue expectations and recently raised its dividend to $1.03 per share.

Mmbg Investment Advisors CO. lowered its stake in Constellation Brands Inc (NYSE:STZ - Free Report) by 86.0% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 3,740 shares of the company's stock after selling 23,011 shares during the quarter. Mmbg Investment Advisors CO.'s holdings in Constellation Brands were worth $516,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Oppenheimer Asset Management Inc. raised its position in Constellation Brands by 329.8% in the third quarter. Oppenheimer Asset Management Inc. now owns 73,323 shares of the company's stock worth $9,874,000 after acquiring an additional 56,263 shares during the period. Nordea Investment Management AB raised its position in Constellation Brands by 6.1% in the fourth quarter. Nordea Investment Management AB now owns 867,776 shares of the company's stock worth $120,300,000 after acquiring an additional 49,625 shares during the period. Cambiar Investors LLC raised its position in Constellation Brands by 27.5% in the third quarter. Cambiar Investors LLC now owns 227,218 shares of the company's stock worth $30,599,000 after acquiring an additional 48,954 shares during the period. LSV Asset Management bought a new position in Constellation Brands in the third quarter worth approximately $33,018,000. Finally, Diamond Hill Capital Management Inc. raised its position in Constellation Brands by 97.3% in the third quarter. Diamond Hill Capital Management Inc. now owns 242,171 shares of the company's stock worth $32,613,000 after acquiring an additional 119,400 shares during the period. Hedge funds and other institutional investors own 77.34% of the company's stock.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Needham & Company LLC increased their price target on shares of Constellation Brands from $180.00 to $185.00 and gave the stock a "buy" rating in a research report on Friday, April 10th. Evercore set a $175.00 price target on shares of Constellation Brands and gave the stock an "outperform" rating in a research report on Friday, April 10th. Roth Mkm reiterated a "buy" rating on shares of Constellation Brands in a research report on Thursday, April 9th. Bank of America raised their price objective on shares of Constellation Brands from $142.00 to $154.00 and gave the company an "underperform" rating in a research report on Friday, April 10th. Finally, Royal Bank Of Canada restated an "outperform" rating and set a $185.00 price objective on shares of Constellation Brands in a research report on Friday, April 10th. One investment 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 issued a Sell rating to the stock. Based on data from MarketBeat.com, Constellation Brands presently has a consensus rating of "Moderate Buy" and a consensus target price of $175.37.

Insider Buying and Selling

In related news, EVP James O. Bourdeau sold 4,407 shares of Constellation Brands stock in a transaction dated 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 transaction, the executive vice president owned 9,109 shares in the company, valued at approximately $1,304,773.16. This trade represents a 32.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 12.45% of the company's stock.

Constellation Brands Stock Performance

Shares of NYSE STZ opened at $149.50 on Tuesday. Constellation Brands Inc has a 52-week low of $126.45 and a 52-week high of $186.40. The company has a market cap of $25.74 billion, a P/E ratio of 15.59, a P/E/G ratio of 3.28 and a beta of 0.43. The firm's fifty day moving average is $152.75 and its two-hundred day moving average is $148.88. 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 earnings results on Wednesday, April 8th. The company reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.71 by $0.19. The firm had revenue of $1.92 billion for 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 business's revenue was down 11.3% compared to the same quarter last year. During the same period in the prior year, the company earned $2.63 EPS. As a group, analysts anticipate that Constellation Brands Inc will post 11.9 EPS for the current fiscal year.

Constellation Brands Increases Dividend

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

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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