Zacks Investment Research upgraded shares of Constellation Brands Inc. (NYSE:STZ) from a hold rating to a buy rating in a research note released on Friday. They currently have $173.00 price target on the stock.
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.”
A number of other equities analysts also recently issued reports on the company. Bank of America Corp. reiterated a buy rating and issued a $185.00 price objective on shares of Constellation Brands in a report on Friday, September 30th. Morgan Stanley reiterated a buy rating on shares of Constellation Brands in a report on Thursday, September 15th. reiterated an outperform rating on shares of Constellation Brands in a report on Monday, August 22nd. RBC Capital Markets set a $181.00 price objective on Constellation Brands and gave the stock a buy rating in a report on Wednesday, September 28th. Finally, Susquehanna restated a hold rating on shares of Constellation Brands in a report on Monday, August 8th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company’s stock. Constellation Brands presently has an average rating of Buy and an average price target of $178.30.
Constellation Brands (NYSE:STZ) opened at 156.42 on Friday. The stock has a market capitalization of $31.45 billion, a P/E ratio of 26.91 and a beta of 0.59. The company has a 50 day moving average of $162.41 and a 200-day moving average of $162.09. Constellation Brands has a one year low of $130.23 and a one year high of $173.55.
Constellation Brands (NYSE:STZ) last announced its quarterly earnings results on Wednesday, October 5th. The company reported $1.77 EPS for the quarter, topping analysts’ consensus estimates of $1.65 by $0.12. Constellation Brands had a return on equity of 17.69% and a net margin of 15.64%. The company earned $2.02 billion during the quarter. During the same period in the previous year, the business earned $1.56 EPS. The business’s revenue was up 16.6% compared to the same quarter last year. Equities research analysts predict that Constellation Brands will post $6.45 earnings per share 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 1.02%. Constellation Brands’s payout ratio is currently 27.49%.
Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Envestnet Asset Management Inc. boosted 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 worth $1,787,000 after buying an additional 4,942 shares in the last quarter. Panagora Asset Management Inc. boosted its position in 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 in the last quarter. Arizona State Retirement System boosted its position in Constellation Brands by 1.7% in the first quarter. Arizona State Retirement System now owns 47,671 shares of the company’s stock worth $7,203,000 after buying an additional 800 shares in the last quarter. Royal Bank of Canada boosted its position 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 in the last quarter. Finally, Ladenburg Thalmann Financial Services Inc. boosted its position in 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 in the last quarter. 73.53% of the stock is currently owned by hedge funds and other institutional investors.
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.