Constellation Brands Inc (NYSE:STZ) Given Consensus Rating of “Moderate Buy” by Brokerages

Constellation Brands Inc (NYSE:STZ) has received a consensus rating of “Moderate Buy” from the twenty-two ratings firms that are currently covering the company, Marketbeat reports. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating, twelve have issued a buy rating and one has issued a strong buy rating on the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $176.30.

Several equities research analysts have recently commented on the stock. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Constellation Brands in a research report on Monday, May 4th. Needham & Company LLC lifted their price objective on shares of Constellation Brands from $180.00 to $185.00 and gave the company a “buy” rating in a research report on Friday, April 10th. UBS Group lifted their price objective on shares of Constellation Brands from $176.00 to $186.00 and gave the stock a “buy” rating in a research note on Friday, April 10th. Deutsche Bank Aktiengesellschaft lifted their price objective on Constellation Brands from $154.00 to $155.00 and gave the company a “hold” rating in a report on Friday, April 10th. Finally, TD Cowen upgraded Constellation Brands from a “hold” rating to a “buy” rating and boosted their price target for the stock from $142.00 to $190.00 in a research note on Monday, April 13th.

Constellation Brands Price Performance

Shares of NYSE:STZ opened at $142.55 on Friday. Constellation Brands has a 12 month low of $126.45 and a 12 month high of $196.91. The stock has a market cap of $24.55 billion, a P/E ratio of 14.86, a P/E/G ratio of 3.08 and a beta of 0.43. The company has a current ratio of 1.08, a quick ratio of 0.55 and a debt-to-equity ratio of 1.16. The company has a 50 day moving average of $152.68 and a 200 day moving average of $148.03.

Constellation Brands (NYSE:STZ) last announced its earnings results on Wednesday, April 8th. The company reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.71 by $0.19. Constellation Brands had a net margin of 17.29% and a return on equity of 26.18%. The business had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.84 billion. During the same period in the previous year, the business posted $2.63 earnings per share. Constellation Brands’s revenue for the quarter was down 11.3% on a year-over-year basis. As a group, sell-side analysts forecast that Constellation Brands will post 11.9 EPS for the current fiscal year.

Constellation Brands Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 14th. Investors of record on Wednesday, April 29th were paid a $1.03 dividend. The ex-dividend date of this dividend was Wednesday, April 29th. This represents a $4.12 annualized dividend and a yield of 2.9%. This is an increase from Constellation Brands’s previous quarterly dividend of $1.02. Constellation Brands’s dividend payout ratio is currently 42.96%.

Insider Activity

In related news, EVP James O. Bourdeau sold 4,407 shares of the firm’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total transaction of $631,258.68. Following the completion of the sale, the executive vice president directly owned 9,109 shares of the company’s stock, valued at approximately $1,304,773.16. This trade represents a 32.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 12.45% of the company’s stock.

Hedge Funds Weigh In On Constellation Brands

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Root Financial Partners LLC acquired a new position in Constellation Brands during the third quarter worth approximately $26,000. MV Capital Management Inc. acquired a new position in shares of Constellation Brands in the fourth quarter valued at approximately $26,000. Stance Capital LLC acquired a new position in shares of Constellation Brands in the third quarter valued at approximately $26,000. Strive Financial Group LLC acquired a new position in shares of Constellation Brands in the fourth quarter valued at approximately $27,000. Finally, GoalVest Advisory LLC acquired a new position in shares of Constellation Brands in the fourth quarter valued at approximately $28,000. Hedge funds and other 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.