Royal Bank of Canada Sells 152,119 Shares of Constellation Brands Inc $STZ

Key Points

• Royal Bank of Canada has decreased its stake in Constellation Brands by 10.2%, now holding approximately 1.34 million shares valued at $246.35 million.
• Constellation Brands reported earnings of $3.22 EPS for the last quarter, missing estimates by $0.23, and experienced a 5.5% decline in revenue year-over-year.
• The company declared a quarterly dividend of $1.02 per share, translating to an annual yield of 2.5%, despite a high dividend payout ratio of -170.71%.

Royal Bank of Canada cut its stake in shares of Constellation Brands Inc (NYSE:STZ - Free Report) by 10.2% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,342,370 shares of the company's stock after selling 152,119 shares during the quarter. Royal Bank of Canada owned about 0.75% of Constellation Brands worth $246,352,000 as of its most recent SEC filing.

Other large investors have also recently modified their holdings of the company. Minot DeBlois Advisors LLC purchased a new position in Constellation Brands in the fourth quarter worth about $29,000. Laurel Wealth Advisors LLC purchased a new position in Constellation Brands in the 1st quarter worth approximately $32,000. Rakuten Securities Inc. lifted its position in Constellation Brands by 805.0% in the 1st quarter. Rakuten Securities Inc. now owns 181 shares of the company's stock valued at $33,000 after acquiring an additional 161 shares in the last quarter. Zions Bancorporation National Association UT purchased a new stake in Constellation Brands during the 1st quarter valued at $38,000. Finally, WPG Advisers LLC purchased a new stake in Constellation Brands during the 1st quarter valued at $43,000. Hedge funds and other institutional investors own 77.34% of the company's stock.

Insider Buying and Selling

In other news, EVP James O. Bourdeau sold 821 shares of the company's stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $169.00, for a total transaction of $138,749.00. Following the sale, the executive vice president directly owned 9,438 shares of the company's stock, valued at $1,595,022. This represents a 8.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 12.45% of the company's stock.

Constellation Brands Stock Performance

Constellation Brands stock traded down $0.59 during midday trading on Thursday, hitting $145.90. The stock had a trading volume of 2,757,260 shares, compared to its average volume of 2,152,833. Constellation Brands Inc has a 52-week low of $144.81 and a 52-week high of $261.06. The company has a market capitalization of $25.72 billion, a PE ratio of -61.05, a P/E/G ratio of 0.44 and a beta of 0.67. The firm's fifty day moving average is $167.43 and its two-hundred day moving average is $175.39. The company has a current ratio of 1.07, a quick ratio of 0.68 and a debt-to-equity ratio of 1.30.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its quarterly earnings data on Tuesday, July 1st. The company reported $3.22 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.45 by ($0.23). Constellation Brands had a positive return on equity of 31.41% and a negative net margin of 4.11%.The firm had revenue of $2.52 billion during the quarter, compared to analysts' expectations of $2.57 billion. During the same period last year, the company earned $3.57 earnings per share. The business's revenue for the quarter was down 5.5% on a year-over-year basis. Constellation Brands has set its FY 2026 guidance at 12.600-12.900 EPS. On average, research analysts forecast that Constellation Brands Inc will post 13.5 EPS for the current year.

Constellation Brands Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Investors of record on Wednesday, July 30th were paid a dividend of $1.02 per share. This represents a $4.08 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Wednesday, July 30th. Constellation Brands's dividend payout ratio (DPR) is presently -170.71%.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on STZ shares. Bank of America lowered their price target on Constellation Brands from $150.00 to $142.00 and set an "underperform" rating on the stock in a report on Wednesday. Needham & Company LLC decreased their target price on Constellation Brands from $200.00 to $180.00 and set a "buy" rating for the company in a research report on Wednesday. TD Cowen lowered their target price on shares of Constellation Brands from $180.00 to $152.00 and set a "hold" rating on the stock in a research note on Thursday. Citigroup reduced their price target on shares of Constellation Brands from $174.00 to $155.00 and set a "neutral" rating for the company in a research note on Thursday. Finally, Cowen reissued a "hold" rating on shares of Constellation Brands in a report on Monday, July 7th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $194.36.

Constellation Brands 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.