WealthPlan Investment Management LLC Cuts Stock Holdings in Constellation Brands Inc $STZ

Key Points

• WealthPlan Investment Management cut its Constellation Brands stake by 52.7% in the fourth quarter, leaving it with 16,515 shares worth about $2.28 million.
• Despite the selloff by one investor, analysts remain constructive on STZ: several firms reiterated buy/outperform ratings, and the consensus price target is $176.30, above the recent trading price.
• Constellation Brands reported better-than-expected quarterly earnings and revenue and also raised its dividend to $1.03 per share, which annualizes to a 2.9% yield.

WealthPlan Investment Management LLC reduced its position in shares of Constellation Brands Inc (NYSE:STZ - Free Report) by 52.7% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 16,515 shares of the company's stock after selling 18,431 shares during the period. WealthPlan Investment Management LLC's holdings in Constellation Brands were worth $2,278,000 at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of STZ. Root Financial Partners LLC purchased a new stake in Constellation Brands during the 3rd quarter worth approximately $26,000. Stance Capital LLC purchased a new stake in Constellation Brands during the 3rd quarter worth approximately $26,000. GoalVest Advisory LLC purchased a new stake in Constellation Brands during the 4th quarter worth approximately $28,000. Mowery & Schoenfeld Wealth Management LLC purchased a new stake in Constellation Brands during the 4th quarter worth approximately $39,000. Finally, CVA Family Office LLC increased its stake in Constellation Brands by 713.2% during the 3rd quarter. CVA Family Office LLC now owns 309 shares of the company's stock worth $42,000 after buying an additional 271 shares in the last quarter. 77.34% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the company. Needham & Company LLC upped their price target on Constellation Brands from $180.00 to $185.00 and gave the company a "buy" rating in a research report on Friday, April 10th. Royal Bank Of Canada restated an "outperform" rating and issued a $185.00 price target on shares of Constellation Brands in a research report on Friday, April 10th. Evercore set a $175.00 price target on Constellation Brands and gave the company an "outperform" rating in a research report on Friday, April 10th. Roth Mkm restated a "buy" rating on shares of Constellation Brands in a research report on Thursday, April 9th. Finally, Citigroup restated a "buy" rating on shares of Constellation Brands in a research report on Friday, April 10th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Constellation Brands presently has an average rating of "Moderate Buy" and a consensus price target of $176.30.

Insiders Place Their Bets

In related news, EVP James O. Bourdeau sold 4,407 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total value of $631,258.68. Following the completion of the transaction, the executive vice president directly owned 9,109 shares in the company, valued at approximately $1,304,773.16. This represents a 32.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 12.45% of the company's stock.

Constellation Brands Price Performance

STZ stock opened at $142.55 on Friday. The company has a debt-to-equity ratio of 1.16, a current ratio of 1.08 and a quick ratio of 0.55. The business has a 50 day simple moving average of $152.68 and a 200-day simple moving average of $148.03. The firm has a market capitalization of $24.55 billion, a PE ratio of 14.86, a price-to-earnings-growth ratio of 3.12 and a beta of 0.43. Constellation Brands Inc has a 1 year low of $126.45 and a 1 year high of $196.91.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its quarterly earnings data on Wednesday, April 8th. The company reported $1.90 earnings per share for the quarter, topping the consensus estimate of $1.71 by $0.19. The company had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.84 billion. Constellation Brands had a return on equity of 26.18% and a net margin of 17.29%.The firm's revenue for the quarter was down 11.3% compared to the same quarter last year. During the same period in the prior year, the business posted $2.63 earnings per share. Equities research analysts anticipate that Constellation Brands Inc will post 11.9 earnings per share for the current fiscal year.

Constellation Brands Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 14th. Investors of record on Wednesday, April 29th were given a $1.03 dividend. The ex-dividend date was Wednesday, April 29th. This is a positive change from Constellation Brands's previous quarterly dividend of $1.02. This represents a $4.12 annualized dividend and a yield of 2.9%. Constellation Brands's dividend payout ratio (DPR) is currently 42.96%.

Constellation Brands Company 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.

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