Northwestern Mutual Wealth Management Co. Grows Stake in Constellation Brands Inc $STZ

Key Points

• Northwestern Mutual Wealth Management dramatically increased its Constellation Brands stake by 799.8% in Q4, ending with 166,406 shares worth about $23 million. Institutional ownership of the stock remains high at 77.34%.
• Constellation Brands reported better-than-expected quarterly earnings, with EPS of $1.90 and revenue of $1.92 billion, both above analyst estimates. However, revenue still fell 11.3% from the same quarter a year earlier.
• The company raised its quarterly dividend to $1.03 per share, bringing the annualized payout to $4.12 and the yield to 2.8%. Analysts currently have a consensus rating of Moderate Buy with an average price target of $175.37.

Northwestern Mutual Wealth Management Co. raised its stake in Constellation Brands Inc (NYSE:STZ - Free Report) by 799.8% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 166,406 shares of the company's stock after acquiring an additional 147,912 shares during the quarter. Northwestern Mutual Wealth Management Co. owned approximately 0.10% of Constellation Brands worth $22,957,000 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 the stock. Choreo LLC boosted its stake in Constellation Brands by 2.1% in the fourth quarter. Choreo LLC now owns 3,116 shares of the company's stock valued at $437,000 after acquiring an additional 63 shares during the last quarter. Dynamic Advisor Solutions LLC boosted its stake in Constellation Brands by 2.2% in the fourth quarter. Dynamic Advisor Solutions LLC now owns 3,507 shares of the company's stock valued at $484,000 after acquiring an additional 76 shares during the last quarter. Sigma Planning Corp boosted its stake in Constellation Brands by 4.0% in the fourth quarter. Sigma Planning Corp now owns 2,458 shares of the company's stock valued at $325,000 after acquiring an additional 95 shares during the last quarter. Shayne & Jacobs LLC boosted its stake in Constellation Brands by 6.9% in the third quarter. Shayne & Jacobs LLC now owns 1,850 shares of the company's stock valued at $249,000 after acquiring an additional 120 shares during the last quarter. Finally, Raiffeisen Bank International AG boosted its stake in Constellation Brands by 57.8% in the third quarter. Raiffeisen Bank International AG now owns 344 shares of the company's stock valued at $46,000 after acquiring an additional 126 shares during the last quarter. 77.34% of the stock is currently owned by hedge funds and other institutional investors.

Constellation Brands Stock Down 0.9%

Shares of NYSE:STZ opened at $146.22 on Wednesday. The firm has a fifty day moving average price of $152.68 and a two-hundred day moving average price of $148.31. The company has a debt-to-equity ratio of 1.16, a current ratio of 1.08 and a quick ratio of 0.55. Constellation Brands Inc has a one year low of $126.45 and a one year high of $193.50. The company has a market cap of $25.18 billion, a price-to-earnings ratio of 15.25, a PEG ratio of 3.24 and a beta of 0.43.

Constellation Brands (NYSE:STZ - Get Free Report) last announced 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 during the quarter, compared to the consensus estimate of $1.84 billion. Constellation Brands had a net margin of 17.29% and a return on equity of 26.18%. The business's quarterly revenue was down 11.3% compared to the same quarter last year. During the same period last year, the firm earned $2.63 EPS. Analysts anticipate that Constellation Brands Inc will post 11.9 EPS for the current fiscal year.

Constellation Brands Increases Dividend

The business also recently disclosed 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 is an increase from Constellation Brands's previous quarterly dividend of $1.02. The ex-dividend date was Wednesday, April 29th. This represents a $4.12 annualized dividend and a dividend yield of 2.8%. Constellation Brands's dividend payout ratio is 42.96%.

Analyst Ratings Changes

A number of analysts recently commented on STZ shares. Barclays upped their price target on shares of Constellation Brands from $151.00 to $170.00 and gave the company an "equal weight" rating in a research note on Friday, April 10th. TD Cowen upgraded shares of Constellation Brands from a "hold" rating to a "buy" rating and upped their price target for the company from $142.00 to $190.00 in a research note on Monday, April 13th. Bank of America upped their price target on shares of Constellation Brands from $142.00 to $154.00 and gave the company an "underperform" rating in a research note on Friday, April 10th. Roth Mkm restated a "buy" rating on shares of Constellation Brands in a research note on Thursday, April 9th. Finally, Citigroup restated a "buy" rating on shares of Constellation Brands in a research note on Monday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $175.37.

Insider Buying and Selling at Constellation Brands

In other news, EVP James O. Bourdeau sold 4,407 shares of the firm's 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 sale, 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 position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 12.45% of the company's stock.

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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