Morningstar Investment Management LLC Decreases Position in Constellation Brands Inc $STZ

Key Points

• Morningstar Investment Management cut its Constellation Brands stake by 21.1% in the fourth quarter, selling 15,315 shares and ending with 57,179 shares valued at about $7.89 million.
• Wall Street sentiment remains mixed but positive overall: analysts’ average rating is Moderate Buy with an average price target of $175.37, while several firms recently raised their targets.
• Constellation Brands reported better-than-expected quarterly results with EPS of $1.90 and revenue of $1.92 billion, and it also raised its quarterly dividend to $1.03 per share.

Morningstar Investment Management LLC cut its stake in Constellation Brands Inc (NYSE:STZ - Free Report) by 21.1% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 57,179 shares of the company's stock after selling 15,315 shares during the quarter. Morningstar Investment Management LLC's holdings in Constellation Brands were worth $7,889,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Choreo LLC lifted its stake in Constellation Brands by 2.1% in the 4th quarter. Choreo LLC now owns 3,116 shares of the company's stock worth $437,000 after purchasing an additional 63 shares in the last quarter. Dynamic Advisor Solutions LLC lifted its stake in Constellation Brands by 2.2% in the 4th quarter. Dynamic Advisor Solutions LLC now owns 3,507 shares of the company's stock worth $484,000 after purchasing an additional 76 shares in the last quarter. Larson Financial Group LLC lifted its stake in Constellation Brands by 2.6% in the 4th quarter. Larson Financial Group LLC now owns 3,610 shares of the company's stock worth $498,000 after purchasing an additional 93 shares in the last quarter. Sigma Planning Corp lifted its stake in Constellation Brands by 4.0% in the 4th quarter. Sigma Planning Corp now owns 2,458 shares of the company's stock worth $325,000 after purchasing an additional 95 shares in the last quarter. Finally, Global Retirement Partners LLC lifted its stake in Constellation Brands by 6.4% in the 4th quarter. Global Retirement Partners LLC now owns 1,739 shares of the company's stock worth $240,000 after purchasing an additional 105 shares in the last quarter. 77.34% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on STZ shares. Piper Sandler raised their target price on shares of Constellation Brands from $146.00 to $160.00 and gave the stock a "neutral" rating in a research note on Friday, April 10th. Needham & Company LLC raised their target price on shares of Constellation Brands from $180.00 to $185.00 and gave the stock a "buy" rating in a research note on Friday, April 10th. Deutsche Bank Aktiengesellschaft raised their target price on shares of Constellation Brands from $154.00 to $155.00 and gave the stock a "hold" rating in a research note on Friday, April 10th. Barclays raised their target price on shares of Constellation Brands from $151.00 to $170.00 and gave the stock an "equal weight" rating in a research note on Friday, April 10th. Finally, JPMorgan Chase & Co. raised 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. One 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 given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $175.37.

Constellation Brands Stock Down 0.0%

STZ stock opened at $149.50 on Monday. The firm has a market cap of $25.74 billion, a PE ratio of 15.59, a PEG ratio of 3.28 and a beta of 0.43. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.55 and a current ratio of 1.08. The firm's 50 day moving average price is $152.73 and its 200-day moving average price is $148.73. Constellation Brands Inc has a one year low of $126.45 and a one year high of $186.40.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings results on Wednesday, April 8th. The company reported $1.90 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 analyst estimates 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 for the quarter was down 11.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.63 EPS. On average, equities research analysts anticipate 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. Stockholders of record on Wednesday, April 29th were given a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend was Wednesday, April 29th. This is a boost from Constellation Brands's previous quarterly dividend of $1.02. Constellation Brands's dividend payout ratio is presently 42.96%.

Insider Activity at Constellation Brands

In other news, EVP James O. Bourdeau sold 4,407 shares of Constellation Brands stock in a transaction that occurred 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 sale, the executive vice president owned 9,109 shares of the company's stock, valued at approximately $1,304,773.16. The trade was a 32.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 12.45% of the company's stock.

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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