Swedbank AB Grows Stake in Constellation Brands Inc $STZ

Key Points

• Swedbank AB increased its stake in Constellation Brands by 29.6% in the first quarter, holding 81,709 shares worth about $12.3 million.
• Constellation Brands reported Q2 earnings of $3.43 per share, missing expectations, though revenue of $2.43 billion came in slightly above estimates and annual guidance remains 11.2–11.9 EPS for FY 2027.
• The company declared a quarterly dividend of $1.03 per share, implying a 3.1% yield, while analysts remain split with a consensus rating of Hold and an average price target of $167.89.

Swedbank AB raised its position in shares of Constellation Brands Inc (NYSE:STZ - Free Report) by 29.6% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 81,709 shares of the company's stock after purchasing an additional 18,654 shares during the period. Swedbank AB's holdings in Constellation Brands were worth $12,256,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also made changes to their positions in the company. MV Capital Management Inc. bought a new stake in shares of Constellation Brands in the fourth quarter valued at about $26,000. Stance Capital LLC bought a new position in Constellation Brands during the 3rd quarter worth about $26,000. Strive Financial Group LLC bought a new position in Constellation Brands during the 4th quarter worth about $27,000. GoalVest Advisory LLC purchased a new position in Constellation Brands during the 4th quarter valued at about $28,000. Finally, Root Financial Partners LLC increased its position in Constellation Brands by 231.3% during the 1st quarter. Root Financial Partners LLC now owns 222 shares of the company's stock valued at $33,000 after purchasing an additional 155 shares during the period. 77.34% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, EVP James O. Bourdeau sold 4,407 shares of the company's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total transaction of $631,258.68. Following the transaction, the executive vice president directly owned 9,109 shares of the company's stock, valued at $1,304,773.16. This represents a 32.61% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 12.20% of the stock is currently owned by company insiders.

Constellation Brands Stock Up 1.1%

Shares of NYSE STZ traded up $1.43 during trading hours on Friday, hitting $133.87. 2,133,042 shares of the stock were exchanged, compared to its average volume of 2,446,262. The company has a quick ratio of 0.48, a current ratio of 0.91 and a debt-to-equity ratio of 1.06. The company has a market cap of $23.05 billion, a PE ratio of 12.77, a PEG ratio of 4.13 and a beta of 0.39. The firm has a fifty day moving average price of $142.33 and a 200-day moving average price of $149.73. Constellation Brands Inc has a 12 month low of $126.45 and a 12 month high of $178.13.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share 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 firm had revenue of $2.43 billion during the quarter, compared to analyst estimates of $2.39 billion. During the same quarter last year, the business earned $3.22 earnings per share. Constellation Brands's 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. On average, sell-side analysts expect that Constellation Brands Inc will post 11.82 EPS for the current year.

Constellation Brands Announces Dividend

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

Analyst Ratings Changes

Several equities research analysts have recently weighed in on STZ shares. Wells Fargo & Company lowered their price target on shares of Constellation Brands from $185.00 to $170.00 and set an "overweight" rating for the company in a research report on Monday, June 29th. Bank of America reduced their price objective 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. Royal Bank Of Canada restated an "outperform" rating and set a $185.00 target price on shares of Constellation Brands in a report on Thursday, July 2nd. Roth Capital reiterated a "buy" rating and issued a $209.00 price target on shares of Constellation Brands in a report on Thursday, July 2nd. Finally, Morgan Stanley reduced their price target on Constellation Brands from $183.00 to $158.00 and set an "equal weight" rating for the company in a research report on Thursday, July 2nd. Eleven research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average 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.

Want to see what other hedge funds are holding STZ? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Constellation Brands Inc (NYSE:STZ - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.