Constellation Brands (NYSE:STZ) Reaches New 12-Month Low Following Analyst Downgrade

Constellation Brands Inc (NYSE:STZ)’s stock price reached a new 52-week low on Tuesday after Wells Fargo & Company lowered their price target on the stock from $170.00 to $140.00. Wells Fargo & Company currently has an overweight rating on the stock. Constellation Brands traded as low as $110.60 and last traded at $113.2850, with a volume of 2942047 shares trading hands. The stock had previously closed at $112.87.

STZ has been the topic of several other reports. Evercore set a $160.00 target price on shares of Constellation Brands in a report on Monday, September 21st. Jefferies Financial Group lowered their price objective on shares of Constellation Brands from $147.00 to $135.00 and set a “hold” rating for the company in a research report on Monday, September 14th. BMO Capital Markets reissued an “outperform” rating and set a $190.00 price objective on shares of Constellation Brands in a research report on Thursday, July 2nd. TD Cowen cut their price objective on shares of Constellation Brands from $174.00 to $150.00 and set a “buy” rating on the stock in a research report on Thursday, September 17th. Finally, Morgan Stanley reduced their target price on shares of Constellation Brands from $183.00 to $158.00 and set an “equal weight” rating for the company in a research note on Thursday, July 2nd. Eleven investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Constellation Brands has an average rating of “Hold” and a consensus target price of $157.40.

Key Constellation Brands News

Here are the key news stories impacting Constellation Brands this week:

• Positive Sentiment: Adjusted earnings were $3.74 per share, ahead of the $3.55 consensus estimate, while revenue rose 6.1% year over year to $2.63 billion, surpassing expectations of approximately $2.54 billion. Constellation Brands Q2 earnings
• Positive Sentiment: Beer sales increased 5% and wine and spirits sales climbed 17%. Net income attributable to Constellation rose 21% to $565.8 million, while year-to-date free cash flow reached approximately $1.1 billion. Constellation Brands profit rises
• Positive Sentiment: Constellation announced the acquisition of spirit-based ready-to-drink brand SpikedAde for $75 million at closing, with potential contingent payments of up to $278 million over five years. The deal expands STZ’s exposure to the growing RTD category. SpikedAde acquisition
• Neutral Sentiment: The company repurchased $530 million of shares year to date and declared a quarterly Class A dividend of $1.03, supporting shareholder returns but not offsetting concerns about the outlook.
• Negative Sentiment: Fiscal 2027 EPS guidance of $11.20 to $11.90 was below the roughly $11.74 analyst consensus at the midpoint and was viewed as disappointing despite the quarterly beat. STZ guidance reaction
• Negative Sentiment: Core brand volumes showed weakness: Modelo Especial depletions fell about 2% and Corona Extra declined about 5%. Reports also cited soft consumer spending and an unchanged full-year outlook, making investors more concerned about demand and margins than the stronger-than-expected quarter. Modelo and Corona volume report

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. MV Capital Management Inc. acquired a new stake in Constellation Brands in the 4th quarter valued at about $26,000. Root Financial Partners LLC increased its position in Constellation Brands by 231.3% during the first quarter. Root Financial Partners LLC now owns 222 shares of the company’s stock worth $33,000 after buying an additional 155 shares during the last quarter. Cedar Mountain Advisors LLC acquired a new position in Constellation Brands during the first quarter worth approximately $33,000. Continuum Advisory LLC bought a new stake in Constellation Brands in the second quarter valued at approximately $33,000. Finally, Ascentis Independent Advisors bought a new stake in Constellation Brands in the first quarter valued at approximately $37,000. Institutional investors own 77.34% of the company’s stock.

Constellation Brands Stock Up 2.7%

The stock has a market cap of $19.87 billion, a P/E ratio of 11.10, a price-to-earnings-growth ratio of 2.25 and a beta of 1.75. The firm has a 50 day simple moving average of $126.30 and a 200-day simple moving average of $138.65. The company has a quick ratio of 0.48, a current ratio of 0.91 and a debt-to-equity ratio of 1.06.

Constellation Brands (NYSE:STZ) last issued its earnings results on Tuesday, October 6th. The company reported $3.74 EPS for the quarter, topping the consensus estimate of $3.55 by $0.19. The company had revenue of $2.63 billion during the quarter, compared to the consensus estimate of $2.54 billion. Constellation Brands had a return on equity of 25.58% and a net margin of 18.87%.The firm’s revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period in the previous year, the company posted $3.63 EPS. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. On average, equities research analysts forecast that Constellation Brands Inc will post 11.81 earnings per share for the current fiscal year.

About Constellation Brands

Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.

The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation’s products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.