Principal Financial Group Inc. Buys 8,203 Shares of Constellation Brands Inc $STZ

Key Points

• Principal Financial Group increased its stake in Constellation Brands by 5.3% in Q1, buying 8,203 additional shares and bringing its total holding to 163,829 shares worth about $24.6 million.
• Constellation Brands reported quarterly EPS of $3.43, which missed analyst expectations, even though revenue of $2.43 billion came in slightly above forecasts. The company also lowered its revenue growth picture with quarterly sales down 3.3% year over year.
• The company declared a quarterly dividend of $1.03 per share, payable on August 13, implying an annualized yield of about 3.1%. Meanwhile, analysts remain mixed on the stock, with a consensus rating of Hold and a target price of $167.89.

Principal Financial Group Inc. lifted its stake in Constellation Brands Inc (NYSE:STZ - Free Report) by 5.3% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 163,829 shares of the company's stock after purchasing an additional 8,203 shares during the period. Principal Financial Group Inc. owned 0.10% of Constellation Brands worth $24,574,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Capital World Investors raised its position in shares of Constellation Brands by 8.3% during the 4th quarter. Capital World Investors now owns 7,238,575 shares of the company's stock valued at $998,740,000 after acquiring an additional 553,974 shares during the last quarter. State Street Corp grew its position in shares of Constellation Brands by 5.0% during the 4th quarter. State Street Corp now owns 6,911,369 shares of the company's stock worth $953,492,000 after buying an additional 329,337 shares during the period. Capital International Investors increased its stake in shares of Constellation Brands by 48.5% in the 4th quarter. Capital International Investors now owns 6,442,600 shares of the company's stock valued at $888,930,000 after acquiring an additional 2,105,546 shares during the last quarter. Wellington Management Group LLP increased its stake in shares of Constellation Brands by 14.0% in the 4th quarter. Wellington Management Group LLP now owns 6,018,653 shares of the company's stock valued at $830,333,000 after acquiring an additional 739,393 shares during the last quarter. Finally, Geode Capital Management LLC raised its position in shares of Constellation Brands by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 3,739,549 shares of the company's stock valued at $513,871,000 after acquiring an additional 54,184 shares during the period. 77.34% of the stock is owned by institutional investors.

Insider Activity

In other news, EVP James O. Bourdeau sold 4,407 shares of the stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total transaction of $631,258.68. Following the sale, the executive vice president directly owned 9,109 shares of the company's stock, valued at approximately $1,304,773.16. This represents a 32.61% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 12.20% of the company's stock.

Constellation Brands Trading Up 1.2%

STZ stock opened at $134.41 on Tuesday. Constellation Brands Inc has a one year low of $126.45 and a one year high of $178.13. The stock has a market cap of $22.95 billion, a price-to-earnings ratio of 12.83, a price-to-earnings-growth ratio of 4.14 and a beta of 0.39. The company has a fifty day moving average price of $140.34 and a two-hundred day moving average price of $149.53. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.91 and a quick ratio of 0.48.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.70 by ($0.27). Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The company had revenue of $2.43 billion during the quarter, compared to the consensus estimate of $2.39 billion. During the same quarter last year, the firm posted $3.22 earnings per share. The company's quarterly revenue was down 3.3% on a year-over-year basis. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Equities analysts anticipate that Constellation Brands Inc will post 11.82 EPS for the current year.

Constellation Brands Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 13th. Stockholders of record on Thursday, July 30th will be given a dividend of $1.03 per share. This represents a $4.12 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date is Thursday, July 30th. Constellation Brands's dividend payout ratio is presently 39.31%.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Piper Sandler reiterated a "neutral" rating and issued a $160.00 price objective on shares of Constellation Brands in a report on Wednesday, July 1st. UBS Group decreased their target price on shares of Constellation Brands from $186.00 to $175.00 and set a "buy" rating for the company in a research report on Wednesday, June 17th. Barclays lowered their price target on shares of Constellation Brands from $170.00 to $139.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 2nd. Weiss Ratings restated a "hold (c-)" rating on shares of Constellation Brands in a research note on Monday, May 4th. Finally, Bank of America decreased their price objective on Constellation Brands from $152.00 to $145.00 and set an "underperform" rating for the company in a report on Thursday, July 2nd. Eleven equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Constellation Brands presently has a consensus rating of "Hold" and a consensus target price of $167.89.

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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