Zacks Investment Research lowered shares of Constellation Brands Inc (NYSE:STZ) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.
According to Zacks, “Constellation Brands has outperformed the broader industry in the last three months. The company boasts a portfolio of popular brands and is the largest wine company worldwide, which bolsters its market position. The company’s focus on brand building and efforts to include new products in its wine and spirits portfolio remain key growth drivers. Also, it remains committed to expanding operations to stimulate business growth, as evident from its various buyouts. These factors, coupled with strong beer business helped the company to post its tenth and eighth straight earnings and sales beat, respectively in the last reported quarter. Also, management issued an impressive fiscal 2018 view, alongside announcing a dividend hike thereafter. However, the recent sale of the Canadian wine business is likely to hurt results to an extent. Also, stiff competition, currency fluctuations and the risk of increasing taxes remain concerns.”
Other analysts have also recently issued research reports about the stock. Stifel Nicolaus upped their price target on shares of Constellation Brands from $189.00 to $201.00 and gave the company a buy rating in a research report on Monday, April 10th. Vetr raised shares of Constellation Brands from a hold rating to a buy rating and set a $163.75 price target on the stock in a research report on Thursday, February 23rd. Royal Bank Of Canada reaffirmed a buy rating and set a $183.00 price target on shares of Constellation Brands in a research report on Friday, March 31st. Pivotal Research upped their price target on shares of Constellation Brands from $200.00 to $220.00 and gave the company a buy rating in a research report on Thursday, April 6th. Finally, BidaskClub cut shares of Constellation Brands from a strong-buy rating to a buy rating in a research report on Saturday, June 10th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and thirteen have given a buy rating to the company. The stock presently has a consensus rating of Buy and an average price target of $188.87.
Constellation Brands (NYSE STZ) traded down 0.06% on Wednesday, reaching $184.46. The company’s stock had a trading volume of 406,612 shares. The company has a market cap of $35.93 billion, a P/E ratio of 24.53 and a beta of 0.31. Constellation Brands has a 12 month low of $144.00 and a 12 month high of $186.55. The stock’s 50 day moving average price is $180.78 and its 200 day moving average price is $163.88. Constellation Brands also was the target of some unusual options trading activity on Friday. Stock investors bought 13,769 put options on the company. This is an increase of approximately 1,241% compared to the average volume of 1,027 put options.
Constellation Brands (NYSE:STZ) last issued its quarterly earnings results on Thursday, April 6th. The company reported $1.48 EPS for the quarter, beating the Zacks’ consensus estimate of $1.36 by $0.12. The business had revenue of $1.63 billion for the quarter, compared to analysts’ expectations of $1.59 billion. Constellation Brands had a net margin of 19.04% and a return on equity of 19.69%. The business’s quarterly revenue was up 5.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.19 earnings per share. Equities research analysts forecast that Constellation Brands will post $7.95 earnings per share for the current year.
In related news, VP Thomas J. Mullin sold 39,854 shares of the firm’s stock in a transaction dated Wednesday, April 12th. The shares were sold at an average price of $169.55, for a total value of $6,757,245.70. Following the transaction, the vice president now owns 48,900 shares of the company’s stock, valued at approximately $8,290,995. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Barry A. Fromberg sold 700 shares of the firm’s stock in a transaction dated Wednesday, April 12th. The shares were sold at an average price of $170.03, for a total transaction of $119,021.00. Following the completion of the transaction, the director now directly owns 21,520 shares in the company, valued at approximately $3,659,045.60. The disclosure for this sale can be found here. In the last ninety days, insiders sold 61,244 shares of company stock worth $10,445,048. 15.59% of the stock is owned by insiders.
A number of institutional investors have recently made changes to their positions in STZ. Iberiabank Corp boosted its position in shares of Constellation Brands by 21.3% in the fourth quarter. Iberiabank Corp now owns 4,521 shares of the company’s stock valued at $693,000 after buying an additional 794 shares during the last quarter. Dynamic Technology Lab Private Ltd boosted its position in shares of Constellation Brands by 49.9% in the fourth quarter. Dynamic Technology Lab Private Ltd now owns 3,650 shares of the company’s stock valued at $560,000 after buying an additional 1,215 shares during the last quarter. Nicholas Co. Inc. WI boosted its position in shares of Constellation Brands by 40.1% in the fourth quarter. Nicholas Co. Inc. WI now owns 52,800 shares of the company’s stock valued at $8,094,000 after buying an additional 15,125 shares during the last quarter. Credit Agricole S A boosted its position in shares of Constellation Brands by 18.1% in the fourth quarter. Credit Agricole S A now owns 132,495 shares of the company’s stock valued at $20,312,000 after buying an additional 20,339 shares during the last quarter. Finally, Advisory Research Inc. acquired a new position in shares of Constellation Brands during the fourth quarter valued at $1,041,000. 76.79% of the stock is currently owned by institutional investors and hedge funds.
About Constellation Brands
Constellation Brands, Inc is an international beverage alcohol company. The Company is a producer and marketer of beer, wine and spirits with operations in the United States, Canada, Mexico, New Zealand and Italy. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. It is a multi-category supplier (beer, wine and spirits) of beverage alcohol in the United States.
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