Morgan Stanley Cuts Constellation Brands (NYSE:STZ) Price Target to $176.00

Key Points

• Morgan Stanley has reduced the price target for Constellation Brands from $195 to $176, while maintaining an "equal weight" rating on the stock, indicating a potential upside of 19.13% from the current price.
• Other firms have mixed ratings on the stock, with Citigroup reaffirming a "negative" rating, while Piper Sandler raised its target to $170 with a "neutral" rating.
• During midday trading, Constellation Brands' stock traded down 2.3%, reaching $147.74, reflecting ongoing volatility in its market performance.

Constellation Brands (NYSE:STZ - Get Free Report) had its price target reduced by Morgan Stanley from $195.00 to $176.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's price objective would indicate a potential upside of 19.13% from the company's current price.

A number of other research firms also recently weighed in on STZ. Citigroup reaffirmed a "negative" rating on shares of Constellation Brands in a research report on Monday, August 25th. Piper Sandler increased their price objective on shares of Constellation Brands from $165.00 to $170.00 and gave the company a "neutral" rating in a research report on Friday, June 6th. Wall Street Zen raised shares of Constellation Brands from a "sell" rating to a "hold" rating in a research report on Tuesday, May 20th. BNP Paribas Exane downgraded shares of Constellation Brands from a "neutral" rating to an "underperform" rating and set a $123.00 price objective on the stock. in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on shares of Constellation Brands from $191.00 to $185.00 and set a "hold" rating on the stock in a research report on Thursday, June 5th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $202.04.

Constellation Brands Trading Down 2.3%

NYSE:STZ traded down $3.52 during midday trading on Wednesday, reaching $147.74. 1,826,931 shares of the stock traded hands, compared to its average volume of 2,407,101. The company has a fifty day moving average of $168.04 and a 200 day moving average of $175.70. Constellation Brands has a 12 month low of $146.77 and a 12 month high of $261.06. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.68 and a current ratio of 1.07. The stock has a market capitalization of $26.04 billion, a P/E ratio of -61.80, a PEG ratio of 0.44 and a beta of 0.67.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its quarterly earnings data on Tuesday, July 1st. The company reported $3.22 EPS for the quarter, missing the consensus estimate 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 company had revenue of $2.52 billion during the quarter, compared to the consensus estimate of $2.57 billion. During the same quarter last year, the company posted $3.57 earnings per share. The firm's revenue for the quarter was down 5.5% compared to the same quarter last year. Constellation Brands has set its FY 2026 guidance at 12.600-12.900 EPS. On average, research analysts predict that Constellation Brands will post 13.5 EPS for the current year.

Insider Activity

In other news, EVP James O. Bourdeau sold 821 shares of Constellation Brands stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $169.00, for a total transaction of $138,749.00. Following the sale, the executive vice president owned 9,438 shares in the company, valued at $1,595,022. This trade represents a 8.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 12.45% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Constellation Brands

Institutional investors and hedge funds have recently modified their holdings of the stock. Orion Porfolio Solutions LLC boosted its stake in Constellation Brands by 10.6% during the second quarter. Orion Porfolio Solutions LLC now owns 6,672 shares of the company's stock worth $1,085,000 after buying an additional 638 shares during the period. Cim Investment Management Inc. boosted its stake in Constellation Brands by 99.6% during the second quarter. Cim Investment Management Inc. now owns 11,745 shares of the company's stock worth $1,911,000 after buying an additional 5,860 shares during the period. Coppell Advisory Solutions LLC boosted its stake in Constellation Brands by 14.3% during the second quarter. Coppell Advisory Solutions LLC now owns 1,935 shares of the company's stock worth $312,000 after buying an additional 242 shares during the period. Newbridge Financial Services Group Inc. purchased a new position in Constellation Brands during the second quarter worth $49,000. Finally, Marex Group plc purchased a new position in Constellation Brands during the second quarter worth $1,889,000. Institutional investors own 77.34% of the company's stock.

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.

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