Robeco Institutional Asset Management B.V. Makes New Investment in Constellation Brands Inc $STZ

Key Points

• Robeco Institutional Asset Management initiated a position in Constellation Brands during the third quarter, purchasing 22,979 shares valued at approximately $2.6 million. Institutional investors and hedge funds collectively own 77.34% of the company.
• Constellation Brands exceeded quarterly expectations, reporting $3.74 in EPS and $2.63 billion in revenue, with revenue up 6.1% year over year. The company also declared a quarterly dividend of $1.03 per share, equivalent to a 3.0% annualized yield.
• Analyst sentiment remains mixed, with the stock carrying a consensus “Hold” rating and an average price target of $153.09, despite several recent target reductions.

Robeco Institutional Asset Management B.V. bought a new position in Constellation Brands Inc (NYSE:STZ - Free Report) during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 22,979 shares of the company's stock, valued at approximately $2,598,000.

A number of other institutional investors and hedge funds have also recently bought and sold shares of STZ. Dimensional Fund Advisors LP grew its position in shares of Constellation Brands by 5.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,826,652 shares of the company's stock valued at $274,029,000 after purchasing an additional 88,538 shares during the last quarter. Bank of America Corp DE increased its stake in shares of Constellation Brands by 9.5% in the first quarter. Bank of America Corp DE now owns 1,403,275 shares of the company's stock worth $210,491,000 after purchasing an additional 121,515 shares during the period. Bank of New York Mellon Corp increased its stake in shares of Constellation Brands by 4.0% in the first quarter. Bank of New York Mellon Corp now owns 1,042,651 shares of the company's stock worth $156,398,000 after purchasing an additional 40,124 shares during the period. Empyrean Capital Partners LP increased its stake in shares of Constellation Brands by 3.3% in the first quarter. Empyrean Capital Partners LP now owns 606,200 shares of the company's stock worth $90,930,000 after purchasing an additional 19,500 shares during the period. Finally, Nykredit A S acquired a new position in shares of Constellation Brands during the 2nd quarter worth about $83,687,000. Institutional investors and hedge funds own 77.34% of the company's stock.

Constellation Brands Stock Down 0.1%

Shares of STZ stock opened at $138.47 on Monday. The stock has a market cap of $23.43 billion, a P/E ratio of 12.42, a price-to-earnings-growth ratio of 2.84 and a beta of 0.44. Constellation Brands Inc has a one year low of $110.60 and a one year high of $168.60. The stock has a fifty day moving average price of $125.29 and a 200 day moving average price of $136.60. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.00 and a quick ratio of 0.53.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its quarterly earnings results on Tuesday, October 6th. The company reported $3.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.62 by $0.12. Constellation Brands had a net margin of 19.57% and a return on equity of 24.75%. The firm had revenue of $2.63 billion for the quarter, compared to analyst estimates of $2.54 billion. During the same quarter in the previous year, the firm posted $3.63 EPS. The business's revenue for the quarter was up 6.1% on a year-over-year basis. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Analysts predict that Constellation Brands Inc will post 11.85 earnings per share for the current year.

Constellation Brands Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be paid a $1.03 dividend. The ex-dividend date of this dividend is Friday, October 30th. This represents a $4.12 dividend on an annualized basis and a yield of 3.0%. Constellation Brands's payout ratio is presently 36.95%.

Analysts Set New Price Targets

A number of brokerages have recently commented on STZ. Jefferies Financial Group cut their price target on Constellation Brands from $147.00 to $135.00 and set a "hold" rating for the company in a report on Monday, September 14th. UBS Group lowered their price objective on shares of Constellation Brands from $145.00 to $144.00 and set a "buy" rating on the stock in a research note on Thursday, October 8th. Needham & Company LLC dropped their target price on shares of Constellation Brands from $185.00 to $150.00 and set a "buy" rating on the stock in a research report on Thursday, October 8th. Barclays dropped their target price on shares of Constellation Brands from $132.00 to $122.00 and set an "equal weight" rating on the stock in a research report on Tuesday, September 22nd. Finally, Bank of America cut their target price on shares of Constellation Brands from $152.00 to $145.00 and set an "underperform" rating for the company in a research note on Thursday, July 2nd. Twelve investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $153.09.

Constellation Brands Company Profile

Constellation Brands, Inc is a beverage alcohol company that develops, produces, markets and distributes beer, wine and spirits. Its beer portfolio includes Modelo Especial, Corona Extra, Corona Light, Pacifico and Victoria, while its wine and spirits brands include Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company, Simi, Ruffino, High West and Casa Noble.

The company's beer business is primarily focused on the United States, where Constellation markets and distributes several leading Mexican beer brands under license from Grupo Modelo.

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