Constellation Brands (NYSE:STZ) Hits New 52-Week Low - What's Next?

Key Points

• Constellation Brands shares hit a new 52-week low, falling to $123.48 and trading near $125, below both the 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans cautious: the stock has an average “Hold” rating, while several firms recently lowered price targets. The consensus target remains $170.
• The company missed quarterly EPS estimates, reporting $3.43 versus $3.70 expected, while revenue grew slightly above expectations but declined 3.3% year over year. Constellation also maintains a quarterly dividend of $1.03 per share, yielding about 3.3%.

Shares of Constellation Brands Inc (NYSE:STZ - Get Free Report) hit a new 52-week low on Tuesday . The stock traded as low as $123.48 and last traded at $125.0090, with a volume of 1200427 shares changing hands. The stock had previously closed at $128.18.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on STZ shares. Deutsche Bank Aktiengesellschaft cut their price target on shares of Constellation Brands from $155.00 to $150.00 and set a "hold" rating for the company in a report on Thursday, July 2nd. Bank of America lowered their price objective on Constellation Brands from $152.00 to $145.00 and set an "underperform" rating for the company in a research report on Thursday, July 2nd. Morgan Stanley decreased their price target on Constellation Brands from $183.00 to $158.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 2nd. Barclays lowered their price target on Constellation Brands from $139.00 to $132.00 and set an "equal weight" rating for the company in a report on Tuesday, July 21st. Finally, Jefferies Financial Group set a $147.00 price objective on Constellation Brands in a research report on Thursday, July 2nd. Eleven analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $170.00.

Constellation Brands Price Performance

The company has a current ratio of 0.91, a quick ratio of 0.48 and a debt-to-equity ratio of 1.06. The stock has a market cap of $21.16 billion, a PE ratio of 11.85, a P/E/G ratio of 2.42 and a beta of 0.41. The company has a fifty day moving average of $132.64 and a 200-day moving average of $143.85.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its earnings results on Tuesday, June 30th. The company reported $3.43 EPS for the quarter, missing analysts' consensus estimates 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 for the quarter, compared to analysts' expectations of $2.39 billion. During the same quarter last year, the business earned $3.22 earnings per share. The business's revenue was down 3.3% compared to the same quarter last year. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Sell-side analysts expect that Constellation Brands Inc will post 11.84 EPS for the current fiscal year.

Constellation Brands Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, August 13th. Shareholders of record on Thursday, July 30th were issued a dividend of $1.03 per share. The ex-dividend date was Thursday, July 30th. This represents a $4.12 annualized dividend and a yield of 3.3%. Constellation Brands's dividend payout ratio is 39.31%.

Hedge Funds Weigh In On Constellation Brands

A number of institutional investors and hedge funds have recently made changes to their positions in STZ. MV Capital Management Inc. purchased a new stake in shares of Constellation Brands in the 4th quarter valued at approximately $26,000. Stance Capital LLC acquired a new position in shares of Constellation Brands during the 3rd quarter worth about $26,000. Strive Financial Group LLC acquired a new position in shares of Constellation Brands during the 4th quarter worth about $27,000. Elyxium Wealth LLC purchased a new position in shares of Constellation Brands in the 4th quarter valued at about $33,000. Finally, Root Financial Partners LLC raised its position in shares of Constellation Brands by 231.3% during the 1st quarter. Root Financial Partners LLC now owns 222 shares of the company's stock worth $33,000 after acquiring an additional 155 shares in the last quarter. 77.34% of the stock is owned by institutional investors and hedge funds.

About Constellation Brands

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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