Pinnacle Associates Ltd. Lowers Stock Position in Constellation Brands Inc (NYSE:STZ)

Key Points

• Pinnacle Associates Ltd. reduced its stake in Constellation Brands Inc. by 71.9% in the first quarter, leaving it with a position valued at approximately $1.24 million.
• Constellation Brands' latest earnings report showed a missed estimate, with earnings per share of $3.22 against a consensus of $3.45 and revenue of $2.52 billion compared to expectations of $2.57 billion.
• The company announced a quarterly dividend of $1.02, representing an annualized yield of 2.32%, despite a negative payout ratio of -170.71%.

Pinnacle Associates Ltd. decreased its holdings in Constellation Brands Inc (NYSE:STZ - Free Report) by 71.9% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 6,769 shares of the company's stock after selling 17,300 shares during the quarter. Pinnacle Associates Ltd.'s holdings in Constellation Brands were worth $1,242,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Minot DeBlois Advisors LLC purchased a new stake in shares of Constellation Brands in the fourth quarter valued at approximately $29,000. Optiver Holding B.V. purchased a new stake in shares of Constellation Brands in the fourth quarter valued at approximately $31,000. Laurel Wealth Advisors LLC purchased a new stake in shares of Constellation Brands in the first quarter valued at approximately $32,000. Rakuten Securities Inc. grew its position in shares of Constellation Brands by 805.0% in the first quarter. Rakuten Securities Inc. now owns 181 shares of the company's stock valued at $33,000 after purchasing an additional 161 shares in the last quarter. Finally, Fourth Dimension Wealth LLC purchased a new stake in shares of Constellation Brands in the fourth quarter valued at approximately $44,000. Institutional investors and hedge funds own 77.34% of the company's stock.

Constellation Brands Stock Down 2.4%

Constellation Brands stock traded down $4.22 during midday trading on Wednesday, reaching $171.61. The company's stock had a trading volume of 1,398,697 shares, compared to its average volume of 2,078,480. Constellation Brands Inc has a fifty-two week low of $159.35 and a fifty-two week high of $261.06. The company has a quick ratio of 0.68, a current ratio of 1.07 and a debt-to-equity ratio of 1.30. The company has a market cap of $30.25 billion, a P/E ratio of -71.80, a P/E/G ratio of 10.64 and a beta of 0.67. The business has a 50-day simple moving average of $170.91 and a 200-day simple moving average of $177.51.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its quarterly earnings data on Tuesday, July 1st. The company reported $3.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.45 by ($0.23). The firm had revenue of $2.52 billion for the quarter, compared to analysts' expectations of $2.57 billion. Constellation Brands had a positive return on equity of 31.41% and a negative net margin of 4.11%. The business's revenue for the quarter was down 5.5% compared to the same quarter last year. During the same period in the previous year, the business posted $3.57 EPS. On average, research analysts expect that Constellation Brands Inc will post 13.5 earnings per share for the current fiscal year.

Constellation Brands Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 14th. Shareholders of record on Wednesday, July 30th will be issued a dividend of $1.02 per share. This represents a $4.08 annualized dividend and a dividend yield of 2.38%. The ex-dividend date of this dividend is Wednesday, July 30th. Constellation Brands's payout ratio is -170.71%.

Insider Activity

In other Constellation Brands news, EVP Samuel J. Glaetzer sold 3,150 shares of the firm's stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $188.54, for a total transaction of $593,901.00. Following the transaction, the executive vice president owned 3,126 shares of the company's stock, valued at approximately $589,376.04. This trade represents a 50.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP James O. Bourdeau sold 821 shares of the firm's stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $169.00, for a total value of $138,749.00. Following the transaction, the executive vice president directly owned 9,438 shares in the company, valued at approximately $1,595,022. This represents a 8.00% decrease in their position. The disclosure for this sale can be found here. Company insiders own 12.45% of the company's stock.

Analyst Ratings Changes

Several research analysts recently weighed in on STZ shares. Deutsche Bank Aktiengesellschaft lowered their price objective on Constellation Brands from $191.00 to $185.00 and set a "hold" rating for the company in a research report on Thursday, June 5th. Roth Capital lowered their price objective on Constellation Brands from $256.00 to $239.00 and set a "buy" rating for the company in a research report on Tuesday, May 20th. Roth Mkm lowered their price objective on Constellation Brands from $284.00 to $256.00 and set a "buy" rating for the company in a research report on Thursday, April 3rd. UBS Group increased their price objective on Constellation Brands from $195.00 to $205.00 and gave the stock a "buy" rating in a research report on Thursday, July 3rd. Finally, Morgan Stanley lowered their price objective on Constellation Brands from $202.00 to $195.00 and set an "equal weight" rating for the company in a research report on Friday, April 11th. Eleven analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $213.74.

Constellation Brands Company Profile

Constellation Brands, Inc, together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands.