Constellation Brands Inc. (NYSE:STZ) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday.
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 equities analysts have also commented on the company. Bank of America Corp. reiterated a “buy” rating and set a $185.00 price objective on shares of Constellation Brands in a research report on Friday, September 30th. Morgan Stanley restated a “buy” rating on shares of Constellation Brands in a research report on Thursday, September 15th. restated an “outperform” rating on shares of Constellation Brands in a research report on Monday, August 22nd. RBC Capital Markets set a $181.00 price target on Constellation Brands and gave the stock a “buy” rating in a research report on Wednesday, September 28th. Finally, Susquehanna restated a “hold” rating on shares of Constellation Brands in a research report on Monday, August 8th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average price target of $178.30.
Shares of Constellation Brands (NYSE:STZ) traded up 0.19% during midday trading on Monday, reaching $156.71. The company’s stock had a trading volume of 351,042 shares. The company’s 50-day moving average price is $162.41 and its 200 day moving average price is $162.09. Constellation Brands has a 12-month low of $130.23 and a 12-month high of $173.55. The company has a market capitalization of $31.51 billion, a P/E ratio of 26.96 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. The firm 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%. Constellation Brands’s revenue for the quarter was up 16.6% compared to the same quarter last year. During the same quarter last year, the company posted $1.56 earnings per share. On average, equities research analysts forecast that Constellation Brands will post $6.45 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Tuesday, November 22nd. Shareholders of record on Tuesday, November 8th were issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.02%. The ex-dividend date was Friday, November 4th. Constellation Brands’s payout ratio is 27.49%.
Several hedge funds have recently bought and sold shares of the company. Redwood Investments LLC acquired a new stake in Constellation Brands during the second quarter worth approximately $14,966,000. CIBC World Markets Inc. raised its stake in Constellation Brands by 42.4% in the second quarter. CIBC World Markets Inc. now owns 76,159 shares of the company’s stock worth $12,597,000 after buying an additional 22,676 shares during the last quarter. Hilton Capital Management LLC raised its stake in Constellation Brands by 3.4% in the second quarter. Hilton Capital Management LLC now owns 74,930 shares of the company’s stock worth $12,393,000 after buying an additional 2,437 shares during the last quarter. Meag Munich Ergo Kapitalanlagegesellschaft MBH raised its stake in Constellation Brands by 110.0% in the second quarter. Meag Munich Ergo Kapitalanlagegesellschaft MBH now owns 140,359 shares of the company’s stock worth $23,215,000 after buying an additional 73,508 shares during the last quarter. Finally, Royal Bank of Canada raised its stake in Constellation Brands by 18.2% in the first quarter. Royal Bank of Canada now owns 266,963 shares of the company’s stock worth $40,334,000 after buying an additional 41,143 shares during the last quarter. 73.53% of the stock is 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 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.