Constellation Brands Inc. (NYSE:STZ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Friday. The firm currently has a $173.00 price objective on the stock. Zacks Investment Research’s price objective would indicate 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.”
STZ has been the topic of several other research reports. Credit Suisse Group AG began coverage on Constellation Brands in a report on Thursday, September 15th. They issued a “neutral” rating and a $178.00 target price on the stock. restated an “outperform” rating on shares of Constellation Brands in a research report on Monday, August 22nd. Morgan Stanley restated an “overweight” rating and issued a $194.00 price objective (up from $191.00) on shares of Constellation Brands in a research report on Saturday, October 8th. Bank of America Corp. downgraded Constellation Brands from a “buy” rating to an “underperform” rating and reduced their price objective for the company from $195.00 to $150.00 in a research report on Wednesday, November 9th. Finally, RBC Capital Markets restated an “outperform” rating and issued a $181.00 price objective on shares of Constellation Brands in a research report on Wednesday, October 5th. One research analyst has rated the stock with a sell rating, five have given a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. The stock has an average rating of “Buy” and an average target price of $178.30.
Shares of Constellation Brands (NYSE:STZ) opened at 154.57 on Friday. Constellation Brands has a 12 month low of $130.23 and a 12 month high of $173.55. The firm has a market capitalization of $31.08 billion, a P/E ratio of 26.59 and a beta of 0.59. The company’s 50 day moving average price is $162.99 and its 200-day moving average price is $162.12.
Constellation Brands (NYSE:STZ) last posted its earnings results on Wednesday, October 5th. The company reported $1.77 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.65 by $0.12. The company had revenue of $2.02 billion for the quarter. Constellation Brands had a return on equity of 17.69% and a net margin of 15.64%. The firm’s revenue for the quarter was up 16.6% on a year-over-year basis. During the same period last year, the company posted $1.56 EPS. On average, equities analysts predict that Constellation Brands will post $6.45 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Tuesday, November 22nd. Stockholders of record on Tuesday, November 8th were paid a $0.40 dividend. 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 currently 27.49%.
Several large investors have recently bought and sold shares of the stock. FMR LLC raised its stake in Constellation Brands by 0.7% in the second quarter. FMR LLC now owns 10,667,795 shares of the company’s stock worth $1,764,453,000 after buying an additional 71,739 shares during the period. Vanguard Group Inc. raised its stake in shares of Constellation Brands by 1.8% in the second quarter. Vanguard Group Inc. now owns 10,580,295 shares of the company’s stock worth $1,749,982,000 after buying an additional 191,324 shares during the period. Lone Pine Capital LLC raised its stake in shares of Constellation Brands by 13.1% in the second quarter. Lone Pine Capital LLC now owns 6,666,012 shares of the company’s stock worth $1,102,558,000 after buying an additional 769,791 shares during the period. BlackRock Institutional Trust Company N.A. raised its stake in shares of Constellation Brands by 2.8% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 4,618,946 shares of the company’s stock worth $769,008,000 after buying an additional 123,739 shares during the period. Finally, JPMorgan Chase & Co. raised its stake in shares of Constellation Brands by 7.7% in the third quarter. JPMorgan Chase & Co. now owns 4,100,732 shares of the company’s stock worth $683,228,000 after buying an additional 292,181 shares during the period. Institutional investors and hedge funds own 75.08% of the company’s stock.
About Constellation Brands
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.