Constellation Brands (NYSE:STZ) Sets New 52-Week Low Following Analyst Downgrade

Constellation Brands, Inc. (NYSE:STZ)’s stock price hit a new 52-week low during trading on Tuesday after Evercore ISI lowered their price target on the stock from $300.00 to $250.00. Evercore ISI currently has an outperform rating on the stock. Constellation Brands traded as low as $176.51 and last traded at $185.84, with a volume of 5460613 shares traded. The stock had previously closed at $181.81.

Other research analysts have also recently issued reports about the company. Barclays reduced their price objective on Constellation Brands from $300.00 to $282.00 and set an “overweight” rating on the stock in a research note on Wednesday, January 8th. Piper Sandler reduced their price target on Constellation Brands from $300.00 to $245.00 and set an “overweight” rating on the stock in a research report on Monday. Bank of America reiterated a “neutral” rating and issued a $255.00 price objective (down previously from $300.00) on shares of Constellation Brands in a research report on Monday, October 7th. BNP Paribas started coverage on shares of Constellation Brands in a report on Monday, November 25th. They issued a “neutral” rating and a $261.00 target price on the stock. Finally, Truist Financial decreased their target price on shares of Constellation Brands from $265.00 to $255.00 and set a “hold” rating on the stock in a research note on Friday, October 4th. Seven equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $268.05.

Insider Buying and Selling

In other news, CEO William A. Newlands sold 7,426 shares of the company’s stock in a transaction that occurred on Tuesday, October 29th. The stock was sold at an average price of $237.24, for a total transaction of $1,761,744.24. Following the sale, the chief executive officer now directly owns 7,274 shares of the company’s stock, valued at $1,725,683.76. This represents a 50.52 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Robert Sands sold 119,274 shares of the firm’s stock in a transaction on Wednesday, October 16th. The shares were sold at an average price of $242.37, for a total transaction of $28,908,439.38. Following the completion of the transaction, the director now directly owns 431,729 shares of the company’s stock, valued at approximately $104,638,157.73. This trade represents a 21.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 188,446 shares of company stock worth $45,687,281. 12.19% of the stock is owned by insiders.

Institutional Investors Weigh In On Constellation Brands

A number of hedge funds have recently bought and sold shares of STZ. Ashton Thomas Private Wealth LLC bought a new stake in shares of Constellation Brands in the 2nd quarter worth about $36,000. Eastern Bank bought a new position in shares of Constellation Brands in the 3rd quarter valued at about $39,000. Versant Capital Management Inc grew its position in Constellation Brands by 887.5% in the fourth quarter. Versant Capital Management Inc now owns 158 shares of the company’s stock worth $35,000 after acquiring an additional 142 shares in the last quarter. FSA Wealth Management LLC bought a new stake in Constellation Brands during the third quarter worth approximately $42,000. Finally, Fairfield Financial Advisors LTD bought a new stake in Constellation Brands during the second quarter worth approximately $57,000. Hedge funds and other institutional investors own 77.34% of the company’s stock.

Constellation Brands Stock Performance

The firm has a market capitalization of $33.74 billion, a PE ratio of 60.14, a P/E/G ratio of 1.69 and a beta of 1.75. The business has a 50-day simple moving average of $230.80 and a 200-day simple moving average of $240.79. The company has a debt-to-equity ratio of 1.31, a current ratio of 1.25 and a quick ratio of 0.53.

Constellation Brands (NYSE:STZ) last released its quarterly earnings results on Friday, January 10th. The company reported $3.25 earnings per share for the quarter, missing the consensus estimate of $3.33 by ($0.08). The company had revenue of $2.46 billion for the quarter, compared to analysts’ expectations of $2.53 billion. Constellation Brands had a net margin of 5.29% and a return on equity of 25.34%. The business’s quarterly revenue was down .3% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.19 EPS. Equities research analysts expect that Constellation Brands, Inc. will post 13.57 earnings per share for the current fiscal year.

Constellation Brands Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, February 21st. Investors of record on Friday, February 7th will be paid a dividend of $1.01 per share. The ex-dividend date is Friday, February 7th. This represents a $4.04 dividend on an annualized basis and a dividend yield of 2.17%. Constellation Brands’s dividend payout ratio is presently 130.74%.

About Constellation Brands

Constellation Brands, Inc, together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands.