Sierra Summit Advisors LLC Makes New Investment in Constellation Brands Inc (NYSE:STZ)

Key Points

• Sierra Summit Advisors LLC acquired 4,585 shares of Constellation Brands Inc, valued at approximately $841,000, during the first quarter.
• Analysts have given Constellation Brands a consensus rating of "Moderate Buy" with a target price averaging $213.74, although recent quarterly earnings missed expectations.
• The company announced a quarterly dividend of $1.02 per share, representing a 2.4% yield, with payment scheduled for August 14th.

Sierra Summit Advisors LLC acquired a new position in Constellation Brands Inc (NYSE:STZ - Free Report) in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 4,585 shares of the company's stock, valued at approximately $841,000.

A number of other institutional investors have also added to or reduced their stakes in STZ. Piscataqua Savings Bank increased its holdings in shares of Constellation Brands by 1.7% during the first quarter. Piscataqua Savings Bank now owns 3,720 shares of the company's stock valued at $683,000 after acquiring an additional 62 shares in the last quarter. Strategic Financial Concepts LLC boosted its position in Constellation Brands by 5.8% in the first quarter. Strategic Financial Concepts LLC now owns 1,128 shares of the company's stock worth $207,000 after purchasing an additional 62 shares during the last quarter. World Investment Advisors boosted its position in Constellation Brands by 1.7% in the first quarter. World Investment Advisors now owns 3,801 shares of the company's stock worth $698,000 after purchasing an additional 62 shares during the last quarter. Moody National Bank Trust Division lifted its position in shares of Constellation Brands by 0.9% during the 1st quarter. Moody National Bank Trust Division now owns 6,991 shares of the company's stock valued at $1,283,000 after buying an additional 64 shares in the last quarter. Finally, Bessemer Group Inc. lifted its position in shares of Constellation Brands by 3.0% during the 1st quarter. Bessemer Group Inc. now owns 2,242 shares of the company's stock valued at $412,000 after buying an additional 65 shares in the last quarter. Institutional investors own 77.34% of the company's stock.

Insider Activity

In related news, EVP Samuel J. Glaetzer sold 3,150 shares of the stock in a transaction that occurred on Tuesday, May 13th. The stock was sold at an average price of $188.54, for a total value of $593,901.00. Following the completion of the sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP James O. Bourdeau sold 821 shares of the stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $169.00, for a total value of $138,749.00. Following the completion of the sale, the executive vice president directly owned 9,438 shares of the company's stock, valued at approximately $1,595,022. This represents a 8.00% decrease in their position. The disclosure for this sale can be found here. 12.45% of the stock is owned by company insiders.

Constellation Brands Stock Performance

Shares of STZ stock traded down $2.50 during mid-day trading on Friday, reaching $170.72. The stock had a trading volume of 1,386,497 shares, compared to its average volume of 1,805,695. The business's fifty day moving average is $169.13 and its 200-day moving average is $176.81. The company has a current ratio of 1.07, a quick ratio of 0.68 and a debt-to-equity ratio of 1.30. The firm has a market cap of $30.10 billion, a price-to-earnings ratio of -71.43, a PEG ratio of 10.33 and a beta of 0.67. Constellation Brands Inc has a 1-year low of $159.35 and a 1-year high of $261.06.

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 for the quarter, missing analysts' consensus estimates of $3.45 by ($0.23). The firm had revenue of $2.52 billion during the quarter, compared to analyst estimates of $2.57 billion. Constellation Brands had a negative net margin of 4.11% and a positive return on equity of 31.41%. The firm's revenue for the quarter was down 5.5% on a year-over-year basis. During the same period in the prior year, the company posted $3.57 earnings per share. On average, research analysts forecast that Constellation Brands Inc will post 13.5 earnings per share for the current year.

Constellation Brands Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 14th. Investors 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 yield of 2.4%. The ex-dividend date of this dividend is Wednesday, July 30th. Constellation Brands's dividend payout ratio (DPR) is -170.71%.

Analyst Upgrades and Downgrades

STZ has been the topic of a number of research analyst reports. The Goldman Sachs Group set a $225.00 price target on Constellation Brands and gave the stock a "buy" rating in a report on Friday, June 27th. Cowen reissued a "hold" rating on shares of Constellation Brands in a research report on Monday, July 7th. Barclays set a $202.00 target price on Constellation Brands and gave the company an "overweight" rating in a research report on Thursday, June 26th. Deutsche Bank Aktiengesellschaft dropped their price objective on Constellation Brands from $191.00 to $185.00 and set a "hold" rating for the company in a report on Thursday, June 5th. Finally, Wall Street Zen upgraded Constellation Brands from a "sell" rating to a "hold" rating in a report on Tuesday, May 20th. Eleven analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Constellation Brands presently has a consensus rating of "Moderate Buy" and a consensus price target of $213.74.

About Constellation Brands

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.