Constellation Brands Inc. (NYSE:STZ) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and 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.”
Other research analysts have also issued research reports about the stock. Susquehanna reaffirmed a “hold” rating on shares of Constellation Brands in a research note on Monday, August 8th. RBC Capital Markets reaffirmed a “buy” rating and issued a $183.00 price target on shares of Constellation Brands in a research note on Wednesday, November 16th. Morgan Stanley reaffirmed an “overweight” rating and issued a $194.00 price target (up previously from $191.00) on shares of Constellation Brands in a research note on Saturday, October 8th. Credit Suisse Group AG began coverage on shares of Constellation Brands in a research note on Thursday, September 15th. They issued a “neutral” rating and a $178.00 price target on the stock. Finally, Bank of America Corp. reaffirmed a “buy” rating and issued a $195.00 price target on shares of Constellation Brands in a research note on Thursday, October 6th. One research analyst has rated the stock with a sell rating, six have issued a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and an average price target of $178.30.
Constellation Brands (NYSE:STZ) traded up 0.28% during mid-day trading on Monday, hitting $156.86. 373,711 shares of the company traded hands. The company’s 50-day moving average is $162.41 and its 200-day moving average is $162.09. The stock has a market capitalization of $31.54 billion, a price-to-earnings ratio of 26.99 and a beta of 0.59. Constellation Brands has a one year low of $130.23 and a one year high of $173.55.
Constellation Brands (NYSE:STZ) last released its quarterly earnings data on Wednesday, October 5th. The company reported $1.77 earnings per share for the quarter, topping 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 had revenue of $2.02 billion for the quarter. During the same period in the previous year, the business earned $1.56 EPS. The firm’s revenue was up 16.6% compared to the same quarter last year. Analysts predict that Constellation Brands will post $6.45 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, November 22nd. Shareholders of record on Tuesday, November 8th were issued a $0.40 dividend. The ex-dividend date was Friday, November 4th. This represents a $1.60 annualized dividend and a dividend yield of 1.02%. Constellation Brands’s dividend payout ratio is currently 27.49%.
Several institutional investors have recently added to or reduced their stakes in the stock. Envestnet Asset Management Inc. increased its position in Constellation Brands by 71.8% in the first quarter. Envestnet Asset Management Inc. now owns 11,826 shares of the company’s stock valued at $1,787,000 after buying an additional 4,942 shares in the last quarter. Panagora Asset Management Inc. boosted its stake in shares of Constellation Brands by 127.3% in the first quarter. Panagora Asset Management Inc. now owns 32,463 shares of the company’s stock worth $4,905,000 after buying an additional 18,182 shares during the last quarter. Royal Bank of Canada boosted its stake in shares of 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. Ladenburg Thalmann Financial Services Inc. boosted its stake in shares of Constellation Brands by 32.7% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 11,769 shares of the company’s stock worth $1,782,000 after buying an additional 2,903 shares during the last quarter. Finally, Raymond James Trust N.A. boosted its stake in shares of Constellation Brands by 5.6% in the second quarter. Raymond James Trust N.A. now owns 3,431 shares of the company’s stock worth $567,000 after buying an additional 183 shares during the last quarter. Hedge funds and other institutional investors own 73.53% of the company’s stock.
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.