Constellation Brands (NYSE:STZ) Sets New 12-Month Low After Analyst Downgrade

Constellation Brands, Inc. (NYSE:STZ)’s stock price reached a new 52-week low on Tuesday after Evercore ISI lowered their price target on the stock from $300.00 to $250.00. Evercore ISI currently has an outperform rating on the stock. Constellation Brands traded as low as $176.51 and last traded at $185.84, with a volume of 5460613 shares changing hands. The stock had previously closed at $181.81.

Several other equities research analysts have also recently weighed in on the stock. Bank of America reiterated a “neutral” rating and set a $255.00 price objective (down from $300.00) on shares of Constellation Brands in a research report on Monday, October 7th. Royal Bank of Canada reiterated an “outperform” rating and set a $308.00 price target on shares of Constellation Brands in a report on Tuesday, January 7th. Wells Fargo & Company dropped their price objective on Constellation Brands from $295.00 to $275.00 and set an “overweight” rating on the stock in a research note on Tuesday, January 7th. BNP Paribas assumed coverage on Constellation Brands in a research note on Monday, November 25th. They set a “neutral” rating and a $261.00 target price for the company. Finally, TD Cowen lowered their target price on Constellation Brands from $270.00 to $260.00 and set a “hold” rating for the company in a report on Wednesday, January 8th. Seven analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $268.05.

Insider Activity

In other news, EVP James A. Jr. Sabia sold 36,086 shares of the firm’s stock in a transaction that occurred on Thursday, November 14th. The shares were sold at an average price of $242.99, for a total value of $8,768,537.14. Following the completion of the transaction, the executive vice president now directly owns 16,042 shares in the company, valued at approximately $3,898,045.58. This trade represents a 69.23 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO William A. Newlands sold 7,426 shares of the business’s stock in a transaction that occurred on Tuesday, October 29th. The shares were sold at an average price of $237.24, for a total transaction of $1,761,744.24. Following the transaction, the chief executive officer now directly owns 7,274 shares of the company’s stock, valued at approximately $1,725,683.76. This represents a 50.52 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 188,446 shares of company stock valued at $45,687,281 over the last quarter. Company insiders own 12.19% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Versant Capital Management Inc raised its position in shares of Constellation Brands by 887.5% in the fourth quarter. Versant Capital Management Inc now owns 158 shares of the company’s stock worth $35,000 after buying an additional 142 shares in the last quarter. Ashton Thomas Private Wealth LLC purchased a new position in shares of Constellation Brands during the second quarter worth about $36,000. Eastern Bank bought a new position in shares of Constellation Brands in the third quarter worth approximately $39,000. FSA Wealth Management LLC bought a new stake in Constellation Brands during the third quarter valued at approximately $42,000. Finally, Fairfield Financial Advisors LTD purchased a new position in Constellation Brands in the 2nd quarter worth approximately $57,000. 77.34% of the stock is owned by institutional investors.

Constellation Brands Stock Up 2.2 %

The stock’s fifty day moving average price is $230.80 and its 200 day moving average price is $240.79. The company has a current ratio of 1.25, a quick ratio of 0.53 and a debt-to-equity ratio of 1.31. The stock has a market cap of $33.74 billion, a P/E ratio of 60.14, a price-to-earnings-growth ratio of 1.69 and a beta of 1.75.

Constellation Brands (NYSE:STZ) last released its earnings results on Friday, January 10th. The company reported $3.25 EPS for the quarter, missing analysts’ consensus estimates of $3.33 by ($0.08). Constellation Brands had a net margin of 5.29% and a return on equity of 25.34%. The firm had revenue of $2.46 billion during the quarter, compared to the consensus estimate of $2.53 billion. During the same period in the prior year, the company earned $3.19 EPS. The firm’s revenue was down .3% compared to the same quarter last year. As a group, research analysts forecast that Constellation Brands, Inc. will post 13.57 earnings per share for the current fiscal year.

Constellation Brands Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, February 21st. Investors of record on Friday, February 7th will be given a $1.01 dividend. The ex-dividend date of this dividend is Friday, February 7th. This represents a $4.04 dividend on an annualized basis and a yield of 2.17%. Constellation Brands’s payout ratio is 130.74%.

Constellation Brands Company Profile

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. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands.