Constellation Brands (NYSE:STZ) Shares Cross Above 200 Day Moving Average - Time to Sell?

Key Points

• Constellation Brands shares rose above their 200-day moving average of $141.63, reaching an intraday high of $149.43 and last trading at $145.77.
• The company beat quarterly estimates, reporting EPS of $3.74 and revenue of $2.63 billion; revenue grew 6.1% year over year. It issued FY2027 EPS guidance of $11.20–$11.90.
• Analyst sentiment is mixed: MarketBeat’s consensus rating is Hold, with an average price target of $154.09. The company also declared a quarterly dividend of $1.03 per share, a 2.8% annualized yield.

Constellation Brands Inc (NYSE:STZ - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $141.63 and traded as high as $149.43. Constellation Brands shares last traded at $145.7690, with a volume of 3,605,292 shares trading hands.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the stock. Weiss Ratings downgraded shares of Constellation Brands from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, October 8th. TD Cowen lowered their price objective on Constellation Brands from $174.00 to $150.00 and set a "buy" rating on the stock in a research note on Thursday, September 17th. JPMorgan Chase & Co. boosted their price target on shares of Constellation Brands from $133.00 to $136.00 and gave the company a "neutral" rating in a research report on Thursday, October 8th. Needham & Company LLC cut their price target on Constellation Brands from $185.00 to $150.00 and set a "buy" rating for the company in a report on Thursday, October 8th. Finally, Barclays cut their target price on Constellation Brands from $132.00 to $122.00 and set an "equal weight" rating for the company in a research note on Tuesday, September 22nd. Twelve analysts have rated the stock with a Buy rating, seven have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $154.09.

Constellation Brands Stock Performance

The firm has a market capitalization of $24.67 billion, a PE ratio of 13.07, a PEG ratio of 2.83 and a beta of 0.39. The company has a quick ratio of 0.53, a current ratio of 1.00 and a debt-to-equity ratio of 1.02. The company has a 50-day moving average of $125.70 and a 200 day moving average of $141.63.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings results on Tuesday, October 6th. The company reported $3.74 earnings per share for the quarter, beating the consensus estimate of $3.62 by $0.12. Constellation Brands had a return on equity of 24.75% and a net margin of 19.57%. The firm had revenue of $2.63 billion for the quarter, compared to analysts' expectations of $2.54 billion. During the same quarter last year, the firm posted $3.63 EPS. The company's revenue was up 6.1% compared to the same quarter last year. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Equities research analysts predict that Constellation Brands Inc will post 11.85 EPS for the current year.

Constellation Brands Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be paid a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Friday, October 30th. Constellation Brands's payout ratio is currently 36.95%.

Institutional Investors Weigh In On Constellation Brands

A number of large investors have recently added to or reduced their stakes in STZ. Dimensional Fund Advisors LP raised its stake in shares of Constellation Brands by 5.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,826,652 shares of the company's stock valued at $274,029,000 after acquiring an additional 88,538 shares during the last quarter. Bank of America Corp DE increased its holdings in Constellation Brands by 9.5% during the 1st quarter. Bank of America Corp DE now owns 1,403,275 shares of the company's stock valued at $210,491,000 after purchasing an additional 121,515 shares during the period. Bank of New York Mellon Corp raised its position in Constellation Brands by 4.0% during the 1st quarter. Bank of New York Mellon Corp now owns 1,042,651 shares of the company's stock valued at $156,398,000 after purchasing an additional 40,124 shares during the last quarter. Empyrean Capital Partners LP lifted its holdings in Constellation Brands by 3.3% in the 1st quarter. Empyrean Capital Partners LP now owns 606,200 shares of the company's stock worth $90,930,000 after buying an additional 19,500 shares during the period. Finally, Janus Henderson Group PLC grew its position in shares of Constellation Brands by 5.7% in the 1st quarter. Janus Henderson Group PLC now owns 585,891 shares of the company's stock worth $87,884,000 after buying an additional 31,749 shares during the last quarter. Hedge funds and other institutional investors own 77.34% of the company's stock.

About Constellation Brands

Constellation Brands, Inc is a beverage alcohol company that develops, produces, markets and distributes beer, wine and spirits. Its beer portfolio includes Modelo Especial, Corona Extra, Corona Light, Pacifico and Victoria, while its wine and spirits brands include Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company, Simi, Ruffino, High West and Casa Noble.

The company's beer business is primarily focused on the United States, where Constellation markets and distributes several leading Mexican beer brands under license from Grupo Modelo.

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