Constellation Brands (NYSE:STZ) Sets New 12-Month Low on Analyst Downgrade

Key Points

• Constellation Brands shares fell to a new 52-week low of $115.50 after UBS lowered its price target from $168 to $145, while maintaining a Buy rating.
• Analyst sentiment is mixed: the stock has a consensus rating of Hold and an average price target of $161.90, despite 12 Buy ratings, nine Holds, and two Sells.
• The company missed quarterly EPS expectations, reporting $3.43 versus $3.70 expected, while revenue declined 3.3% year over year; it continues to offer a $1.03 quarterly dividend, yielding about 3.5%.

Constellation Brands Inc (NYSE:STZ - Get Free Report) shares hit a new 52-week low during mid-day trading on Thursday after UBS Group lowered their price target on the stock from $168.00 to $145.00. UBS Group currently has a buy rating on the stock. Constellation Brands traded as low as $115.50 and last traded at $116.3580, with a volume of 1485598 shares traded. The stock had previously closed at $117.59.

Several other brokerages have also recently commented on STZ. JPMorgan Chase & Co. reduced their target price on Constellation Brands from $169.00 to $165.00 and set a "neutral" rating on the stock in a report on Thursday, July 2nd. Roth Capital reiterated a "buy" rating and set a $209.00 price objective on shares of Constellation Brands in a research report on Thursday, July 2nd. Morgan Stanley dropped their target price on shares of Constellation Brands from $183.00 to $158.00 and set an "equal weight" rating on the stock in a report on Thursday, July 2nd. Evercore set a $160.00 price objective on Constellation Brands in a research report on Monday. Finally, Piper Sandler restated a "neutral" rating and set a $160.00 target price on shares of Constellation Brands in a research report on Wednesday, July 1st. Twelve research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $161.90.

Hedge Funds Weigh In On Constellation Brands

A number of institutional investors and hedge funds have recently made changes to their positions in STZ. HB Wealth Management LLC increased its holdings in shares of Constellation Brands by 0.7% during the 1st quarter. HB Wealth Management LLC now owns 10,795 shares of the company's stock worth $1,619,000 after purchasing an additional 72 shares during the period. Chicago Partners Investment Group LLC lifted its stake in shares of Constellation Brands by 4.3% in the first quarter. Chicago Partners Investment Group LLC now owns 1,888 shares of the company's stock valued at $296,000 after buying an additional 77 shares during the period. Rexford Capital Inc. grew its position in Constellation Brands by 4.0% during the first quarter. Rexford Capital Inc. now owns 2,072 shares of the company's stock worth $311,000 after buying an additional 79 shares in the last quarter. Keybank National Association OH increased its stake in Constellation Brands by 4.0% during the first quarter. Keybank National Association OH now owns 2,338 shares of the company's stock valued at $351,000 after acquiring an additional 90 shares during the period. Finally, Banque Cantonale Vaudoise raised its holdings in Constellation Brands by 3.6% in the 1st quarter. Banque Cantonale Vaudoise now owns 2,643 shares of the company's stock valued at $397,000 after acquiring an additional 93 shares in the last quarter. Institutional investors own 77.34% of the company's stock.

Constellation Brands Price Performance

The company has a market cap of $19.87 billion, a P/E ratio of 11.10, a P/E/G ratio of 2.33 and a beta of 0.41. The stock has a 50-day simple moving average of $129.60 and a 200 day simple moving average of $140.95. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.48 and a current ratio of 0.91.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The company reported $3.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.70 by ($0.27). The firm had revenue of $2.43 billion for the quarter, compared to the consensus estimate of $2.39 billion. Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The business's revenue for the quarter was down 3.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $3.22 earnings per share. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. On average, equities analysts expect that Constellation Brands Inc will post 11.84 EPS for the current year.

Constellation Brands Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 13th. Stockholders of record on Thursday, July 30th were issued a dividend of $1.03 per share. This represents a $4.12 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend was Thursday, July 30th. Constellation Brands's dividend payout ratio (DPR) is presently 39.31%.

About Constellation Brands

Constellation Brands, Inc NYSE: STZ is a beverage alcohol company that produces, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Corona Extra, Modelo Especial, Modelo Negra, Pacifico and Victoria, along with wine brands including Robert Mondavi, The Prisoner, Kim Crawford and Meiomi. Its spirits portfolio includes brands such as Casa Noble tequila and High West whiskey.

The company's beer business is focused primarily on the United States, where Constellation markets and sells Mexican beer brands brewed by its production operations in Mexico.

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