Constellation Brands (NYSE:STZ) Trading Down 5.6% – Should You Sell?

Shares of Constellation Brands Inc (NYSE:STZ) were down 5.6% during mid-day trading on Friday . The company traded as low as $151.99 and last traded at $153.3470. Approximately 2,056,887 shares changed hands during trading, a decline of 26% from the average daily volume of 2,771,521 shares. The stock had previously closed at $162.36.

Analyst Upgrades and Downgrades

STZ has been the topic of a number of research reports. UBS Group set a $168.00 price target on Constellation Brands in a research note on Friday, January 9th. Barclays upped their target price on Constellation Brands from $147.00 to $148.00 and gave the stock an “equal weight” rating in a research report on Monday, January 12th. BMO Capital Markets reissued an “outperform” rating and issued a $190.00 price target on shares of Constellation Brands in a research report on Friday, January 9th. JPMorgan Chase & Co. started coverage on shares of Constellation Brands in a research note on Friday, November 7th. They set a “neutral” rating and a $153.00 price target for the company. Finally, Wells Fargo & Company set a $165.00 price objective on shares of Constellation Brands in a research note on Thursday, January 8th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $176.91.

Constellation Brands Trading Down 7.9%

The company has a quick ratio of 0.70, a current ratio of 1.34 and a debt-to-equity ratio of 1.29. The firm has a market cap of $25.92 billion, a P/E ratio of 23.58, a price-to-earnings-growth ratio of 0.48 and a beta of 0.44. The firm’s 50-day simple moving average is $150.54 and its 200 day simple moving average is $146.95.

Constellation Brands (NYSE:STZ) last announced its quarterly earnings data on Wednesday, January 7th. The company reported $3.06 earnings per share for the quarter, beating the consensus estimate of $2.63 by $0.43. Constellation Brands had a return on equity of 29.15% and a net margin of 11.08%.The business had revenue of $2.22 billion during the quarter, compared to analyst estimates of $2.17 billion. During the same period in the prior year, the company earned $3.25 earnings per share. Constellation Brands’s revenue was down 9.8% compared to the same quarter last year. Constellation Brands has set its FY 2026 guidance at 11.300-11.600 EPS. As a group, analysts expect that Constellation Brands Inc will post 13.5 earnings per share for the current year.

Constellation Brands Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 12th. Investors of record on Thursday, January 29th were paid a dividend of $1.02 per share. This represents a $4.08 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Thursday, January 29th. Constellation Brands’s dividend payout ratio is presently 64.35%.

Institutional Investors Weigh In On Constellation Brands

A number of hedge funds and other institutional investors have recently bought and sold shares of STZ. Capital International Investors grew its position in Constellation Brands by 48.5% during the fourth quarter. Capital International Investors now owns 6,442,600 shares of the company’s stock worth $888,930,000 after buying an additional 2,105,546 shares in the last quarter. Norges Bank bought a new stake in shares of Constellation Brands during the 4th quarter valued at about $267,798,000. Ameriprise Financial Inc. grew its holdings in shares of Constellation Brands by 650.6% during the second quarter. Ameriprise Financial Inc. now owns 1,769,741 shares of the company’s stock worth $287,889,000 after purchasing an additional 1,533,961 shares in the last quarter. Berkshire Hathaway Inc increased its position in shares of Constellation Brands by 11.6% in the second quarter. Berkshire Hathaway Inc now owns 13,400,000 shares of the company’s stock worth $2,179,912,000 after purchasing an additional 1,391,000 shares during the last quarter. Finally, Grantham Mayo Van Otterloo & Co. LLC increased its position in shares of Constellation Brands by 39.6% in the second quarter. Grantham Mayo Van Otterloo & Co. LLC now owns 3,675,855 shares of the company’s stock worth $597,988,000 after purchasing an additional 1,042,904 shares during the last quarter. Institutional investors own 77.34% of the company’s stock.

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.