Oppenheimer Asset Management Inc. Cuts Holdings in Constellation Brands Inc $STZ

Key Points

• Oppenheimer Asset Management reduced its stake in Constellation Brands by 13.6%, selling 9,961 shares and holding 63,362 shares valued at about $8.74 million at the end of the quarter.
• Constellation reported quarterly EPS of $1.90, beating estimates by $0.19, while revenue declined 11.3% year-over-year.
• The company raised its quarterly dividend to $1.03 (annualized $4.12, ~2.7% yield), and analysts maintain a consensus rating of "Moderate Buy" with an average target price of $178.14.

Oppenheimer Asset Management Inc. decreased its position in shares of Constellation Brands Inc (NYSE:STZ - Free Report) by 13.6% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 63,362 shares of the company's stock after selling 9,961 shares during the period. Oppenheimer Asset Management Inc.'s holdings in Constellation Brands were worth $8,741,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in STZ. Root Financial Partners LLC purchased a new position in shares of Constellation Brands during the third quarter valued at about $26,000. Stance Capital LLC purchased a new position in Constellation Brands in the third quarter worth about $26,000. GoalVest Advisory LLC bought a new stake in Constellation Brands in the fourth quarter worth about $28,000. Salomon & Ludwin LLC bought a new stake in Constellation Brands in the third quarter worth about $30,000. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new stake in Constellation Brands in the fourth quarter worth about $39,000. Hedge funds and other institutional investors own 77.34% of the company's stock.

Constellation Brands Stock Down 2.4%

Shares of NYSE STZ opened at $152.88 on Friday. Constellation Brands Inc has a 12-month low of $126.45 and a 12-month high of $196.91. The stock has a market cap of $26.33 billion, a PE ratio of 15.94, a P/E/G ratio of 3.43 and a beta of 0.43. The company has a current ratio of 1.08, a quick ratio of 0.55 and a debt-to-equity ratio of 1.16. The company has a 50-day moving average of $154.67 and a 200 day moving average of $147.66.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its quarterly earnings data 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. Constellation Brands had a net margin of 17.29% and a return on equity of 26.18%. The company had revenue of $1.92 billion during the quarter, compared to analysts' expectations of $1.84 billion. During the same quarter in the prior year, the company earned $2.63 EPS. Constellation Brands's revenue was down 11.3% compared to the same quarter last year. As a group, sell-side analysts predict that Constellation Brands Inc will post 11.9 EPS for the current fiscal year.

Constellation Brands Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 14th. Investors of record on Wednesday, April 29th will be paid a dividend of $1.03 per share. The ex-dividend date of this dividend is Wednesday, April 29th. This represents a $4.12 annualized dividend and a yield of 2.7%. This is a boost from Constellation Brands's previous quarterly dividend of $1.02. Constellation Brands's dividend payout ratio is currently 42.96%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. Citigroup reissued a "buy" rating on shares of Constellation Brands in a research note 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 report on Friday, April 10th. TD Cowen raised shares of Constellation Brands from a "hold" rating to a "buy" rating and boosted their price objective for the company from $142.00 to $190.00 in a report on Monday, April 13th. BMO Capital Markets reiterated an "outperform" rating and issued a $190.00 price objective on shares of Constellation Brands in a research report on Friday, January 9th. Finally, Morgan Stanley upped their price objective on shares of Constellation Brands from $160.00 to $183.00 and gave the stock an "equal weight" rating in a research report on Friday, April 10th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $178.14.

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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