Constellation Brands (NYSE:STZ) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Constellation Brands (NYSE:STZGet Rating) from a hold rating to a sell rating in a report issued on Friday, Zacks.com reports. They currently have $260.00 price objective on the stock.

According to Zacks, “Constellation Brands has outpaced the industry in the past six months on robust surprise trend. It reported second and third straight quarters of earnings and sales beat in fourth-quarter fiscal 2022, respectively. Results gained from continued growth in the beer business and solid consumer demand. Depletion volume benefited from strength in Modelo Especial and Corona Extra. High-end Power Brands, including The Prisoner Brand Family, Kim Crawford and Meiomi, acted as key growth drivers. As a result, management issued an upbeat fiscal 2023 view. Also, the recent partnership with Coca-Cola bodes well. However, continued softness in wine and spirits business remains a drag. Constellation Brands has been witnessing supply-chain challenges, driven by congestion at ports and warehousing costs, which are likely to impact its business in fiscal 2023.”

A number of other brokerages have also recently issued reports on STZ. JPMorgan Chase & Co. decreased their target price on Constellation Brands from $278.00 to $276.00 and set an overweight rating for the company in a research report on Monday, April 4th. Deutsche Bank Aktiengesellschaft upped their target price on Constellation Brands from $240.00 to $250.00 and gave the stock a hold rating in a research report on Friday, April 8th. Wells Fargo & Company decreased their target price on Constellation Brands from $300.00 to $275.00 and set an overweight rating for the company in a research report on Wednesday, February 16th. StockNews.com raised Constellation Brands from a hold rating to a buy rating in a research report on Thursday. Finally, Morgan Stanley decreased their target price on Constellation Brands from $299.00 to $294.00 and set an overweight rating for the company in a research report on Monday, April 4th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and twelve have assigned a buy rating to the company. According to data from MarketBeat, the company has an average rating of Buy and an average target price of $272.89.

Shares of NYSE STZ traded up $3.70 during trading hours on Friday, hitting $248.92. The stock had a trading volume of 1,529,027 shares, compared to its average volume of 984,263. The company has a market capitalization of $46.85 billion, a P/E ratio of -1,382.89, a P/E/G ratio of 2.04 and a beta of 1.07. The firm’s 50-day moving average price is $238.00 and its two-hundred day moving average price is $234.79. Constellation Brands has a 52 week low of $207.35 and a 52 week high of $261.52. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.65 and a current ratio of 1.23.

Constellation Brands (NYSE:STZGet Rating) last announced its quarterly earnings results on Thursday, April 7th. The company reported $2.37 EPS for the quarter, beating the consensus estimate of $2.10 by $0.27. The business had revenue of $2.10 billion during the quarter, compared to analysts’ expectations of $2.02 billion. Constellation Brands had a positive return on equity of 16.43% and a negative net margin of 0.42%. The firm’s quarterly revenue was up 7.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.82 EPS. As a group, analysts expect that Constellation Brands will post 11.18 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 19th. Investors of record on Thursday, May 5th will be paid a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a dividend yield of 1.29%. This is a positive change from Constellation Brands’s previous quarterly dividend of $0.14. The ex-dividend date is Wednesday, May 4th. Constellation Brands’s dividend payout ratio is presently -1,777.78%.

In other Constellation Brands news, CEO William A. Newlands sold 3,787 shares of the stock in a transaction on Wednesday, May 4th. The stock was sold at an average price of $254.00, for a total transaction of $961,898.00. Following the completion of the transaction, the chief executive officer now directly owns 14,798 shares in the company, valued at $3,758,692. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Jeremy S. G. Fowden sold 7,574 shares of the stock in a transaction on Friday, April 8th. The stock was sold at an average price of $240.38, for a total value of $1,820,638.12. Following the transaction, the director now owns 18,501 shares of the company’s stock, valued at $4,447,270.38. The disclosure for this sale can be found here. Insiders sold 25,822 shares of company stock valued at $6,451,256 over the last 90 days. 15.77% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently added to or reduced their stakes in STZ. Wexford Capital LP grew its holdings in shares of Constellation Brands by 1,102.6% during the first quarter. Wexford Capital LP now owns 12,098 shares of the company’s stock worth $2,786,000 after purchasing an additional 11,092 shares during the last quarter. Cadence Bank grew its holdings in shares of Constellation Brands by 2.1% during the first quarter. Cadence Bank now owns 29,124 shares of the company’s stock worth $6,708,000 after purchasing an additional 590 shares during the last quarter. Industrial Alliance Investment Management Inc. grew its holdings in shares of Constellation Brands by 31.3% during the first quarter. Industrial Alliance Investment Management Inc. now owns 33,494 shares of the company’s stock worth $7,714,000 after purchasing an additional 7,976 shares during the last quarter. ING Groep NV grew its holdings in shares of Constellation Brands by 21.6% during the first quarter. ING Groep NV now owns 26,073 shares of the company’s stock worth $6,005,000 after purchasing an additional 4,634 shares during the last quarter. Finally, Stonebridge Capital Advisors LLC grew its holdings in shares of Constellation Brands by 3.0% during the first quarter. Stonebridge Capital Advisors LLC now owns 35,844 shares of the company’s stock worth $8,256,000 after purchasing an additional 1,049 shares during the last quarter. Hedge funds and other institutional investors own 74.99% of the company’s stock.

Constellation Brands Company Profile (Get Rating)

Constellation Brands, Inc, together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. It provides beer primarily under the Corona Extra, Corona Premier, Corona Familiar, Corona Light, Corona Refresca, Corona Hard Seltzer, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands.

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