Constellation Brands Inc. (NYSE:STZ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday. The firm currently has a $173.00 price objective on the stock. Zacks Investment Research’s target price would suggest a potential upside of 11.92% from the stock’s current price.
According to Zacks, “Constellation Brands boasts a portfolio of well-known brands and is the largest wine company in the world, which gives it a competitive edge and bolsters its solid market position. The company’s focus on brand building and efforts to include new products in its wine and spirits portfolio are key growth drivers. Also, it remains committed to expanding operations directed toward achieving business growth, as is evident from its numerous acquisitions. These factors, coupled with strong beer business also helped the company to post its eighth and sixth straight earnings and sales beat, respectively in the last reported quarter. The company also raised its fiscal 2017 view, highlighting its solid prospects. However, the risk of increasing taxes continues to be a concern for the company. Intense competition, currency fluctuations and seasonal nature of the company’s business can also dent its operating performance.”
Several other brokerages also recently commented on STZ. Pivotal Research restated a “buy” rating and set a $200.00 price objective on shares of Constellation Brands in a research report on Thursday, October 6th. Bank of America Corp. restated a “buy” rating and set a $195.00 price objective on shares of Constellation Brands in a research report on Thursday, October 6th. Susquehanna restated a “hold” rating on shares of Constellation Brands in a research report on Monday, August 8th. Morgan Stanley reiterated a “buy” rating on shares of Constellation Brands in a report on Thursday, September 15th. Finally, Citigroup Inc. reiterated a “neutral” rating and set a $191.00 price target (up from $180.00) on shares of Constellation Brands in a report on Sunday, October 9th. One analyst has rated the stock with a sell rating, five have issued a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the stock. Constellation Brands has an average rating of “Buy” and an average price target of $178.30.
Constellation Brands (NYSE:STZ) opened at 154.57 on Friday. Constellation Brands has a 52-week low of $130.23 and a 52-week high of $173.55. The stock has a 50 day moving average price of $162.99 and a 200 day moving average price of $162.12. The company has a market capitalization of $31.08 billion, a price-to-earnings ratio of 26.59 and a beta of 0.59.
Constellation Brands (NYSE:STZ) last announced its quarterly earnings data on Wednesday, October 5th. The company reported $1.77 EPS for the quarter, beating the consensus estimate of $1.65 by $0.12. Constellation Brands had a net margin of 15.64% and a return on equity of 17.69%. The business earned $2.02 billion during the quarter. During the same quarter in the prior year, the firm earned $1.56 earnings per share. The firm’s revenue for the quarter was up 16.6% on a year-over-year basis. Analysts anticipate that Constellation Brands will post $6.45 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, November 22nd. Stockholders of record on Tuesday, November 8th were given a dividend of $0.40 per share. The ex-dividend date was Friday, November 4th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.04%. Constellation Brands’s dividend payout ratio (DPR) is presently 27.49%.
Several institutional investors have recently added to or reduced their stakes in STZ. Quadrant Capital Group LLC boosted its position in Constellation Brands by 2.1% in the second quarter. Quadrant Capital Group LLC now owns 678 shares of the company’s stock worth $103,000 after buying an additional 14 shares during the period. Kistler Tiffany Companies LLC raised its stake in Constellation Brands by 13.2% in the third quarter. Kistler Tiffany Companies LLC now owns 643 shares of the company’s stock worth $107,000 after buying an additional 75 shares in the last quarter. PineBridge Investments L.P. raised its stake in Constellation Brands by 331.3% in the second quarter. PineBridge Investments L.P. now owns 690 shares of the company’s stock worth $115,000 after buying an additional 530 shares in the last quarter. Hanson McClain Inc. raised its stake in Constellation Brands by 0.3% in the second quarter. Hanson McClain Inc. now owns 764 shares of the company’s stock worth $126,000 after buying an additional 2 shares in the last quarter. Finally, TLP Group LLC acquired a new stake in Constellation Brands during the third quarter worth $129,000. 75.08% of the stock is currently owned by institutional investors.
Constellation Brands Company Profile
Constellation Brands, Inc is an international beverage alcohol company. The Company is a producer and marketer of beer and wine the United States and Canada. 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.