Sterling Investment Advisors Ltd. Makes New Investment in Constellation Brands Inc (NYSE:STZ)

Key Points

• Sterling Investment Advisors Ltd. has acquired a new position in Constellation Brands, purchasing 7,469 shares valued at approximately $1.37 million during the first quarter.
• Constellation Brands recently announced a quarterly dividend of $1.02 per share, which will provide an annualized yield of 2.32% for investors.
• Analysts have mixed views on Constellation Brands, with a consensus rating of “Moderate Buy”, and price targets ranging significantly from $182 to $289.

Sterling Investment Advisors Ltd. acquired a new stake 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 7,469 shares of the company's stock, valued at approximately $1,371,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the stock. Berkshire Hathaway Inc acquired a new position in Constellation Brands in the fourth quarter valued at about $1,242,976,000. Norges Bank acquired a new position in Constellation Brands in the fourth quarter valued at about $445,883,000. D1 Capital Partners L.P. grew its stake in Constellation Brands by 186.6% in the fourth quarter. D1 Capital Partners L.P. now owns 1,527,689 shares of the company's stock valued at $337,619,000 after acquiring an additional 994,639 shares during the period. Grantham Mayo Van Otterloo & Co. LLC grew its stake in Constellation Brands by 42.9% in the fourth quarter. Grantham Mayo Van Otterloo & Co. LLC now owns 2,454,258 shares of the company's stock valued at $542,391,000 after acquiring an additional 736,780 shares during the period. Finally, GAMMA Investing LLC grew its stake in Constellation Brands by 7,602.6% in the first quarter. GAMMA Investing LLC now owns 396,220 shares of the company's stock valued at $72,714,000 after acquiring an additional 391,076 shares during the period. Institutional investors own 77.34% of the company's stock.

Analyst Ratings Changes

A number of research analysts have issued reports on the company. Bank of America boosted their target price on Constellation Brands from $180.00 to $182.00 and gave the company a "neutral" rating in a research note on Thursday, July 3rd. Needham & Company LLC boosted their target price on Constellation Brands from $195.00 to $200.00 and gave the company a "buy" rating in a research note on Thursday, July 3rd. Piper Sandler upped their price objective on Constellation Brands from $165.00 to $170.00 and gave the stock a "neutral" rating in a research report on Friday, June 6th. Roth Capital reduced 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. Finally, DA Davidson reduced their price objective on Constellation Brands from $272.00 to $241.00 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's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $213.74.

Constellation Brands Stock Performance

Shares of STZ traded down $3.37 during mid-day trading on Thursday, reaching $168.09. The company's stock had a trading volume of 1,238,122 shares, compared to its average volume of 2,465,919. Constellation Brands Inc has a 1-year low of $159.35 and a 1-year high of $261.06. The stock has a market cap of $29.63 billion, a P/E ratio of -70.39, a PEG ratio of 10.64 and a beta of 0.67. The business has a 50-day simple moving average of $170.91 and a two-hundred day simple moving average of $177.51. 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 released 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 negative net margin of 4.11% and a positive return on equity of 31.41%. The business had revenue of $2.52 billion during the quarter, compared to analyst estimates of $2.57 billion. During the same period in the previous year, the business earned $3.57 earnings per share. The business's quarterly revenue was down 5.5% on a year-over-year basis. As a group, equities research analysts anticipate that Constellation Brands Inc will post 13.5 earnings per share for the current fiscal year.

Constellation Brands Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 14th. Stockholders of record on Wednesday, July 30th will be given a $1.02 dividend. The ex-dividend date is Wednesday, July 30th. This represents a $4.08 dividend on an annualized basis and a dividend yield of 2.43%. Constellation Brands's payout ratio is -170.71%.

Insider Buying and Selling

In other news, EVP James O. Bourdeau sold 821 shares of the 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 transaction, the executive vice president owned 9,438 shares in the company, valued at approximately $1,595,022. This trade represents a 8.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, 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 transaction, the executive vice president owned 3,126 shares in the company, valued at approximately $589,376.04. This trade represents a 50.19% decrease in their position. The disclosure for this sale can be found here. Company insiders own 12.45% of the company's stock.

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.