Constellation Brands (NYSE:STZ) Shares Gap Down After Earnings Miss

Constellation Brands, Inc. (NYSE:STZ) shares gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $219.28, but opened at $203.11. Constellation Brands shares last traded at $201.54, with a volume of 879,275 shares.

The company reported $3.25 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.33 by ($0.08). The business had revenue of $2.46 billion for the quarter, compared to analysts’ expectations of $2.53 billion. Constellation Brands had a net margin of 5.29% and a return on equity of 25.34%. The company’s quarterly revenue was down .3% on a year-over-year basis. During the same quarter last year, the business earned $3.19 EPS.

Constellation Brands Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, February 21st. Stockholders of record on Friday, February 7th will be paid a dividend of $1.01 per share. The ex-dividend date is Friday, February 7th. This represents a $4.04 dividend on an annualized basis and a dividend yield of 2.23%. Constellation Brands’s dividend payout ratio is currently 130.74%.

Analyst Ratings Changes

Several research firms have commented on STZ. TD Cowen cut their price objective on Constellation Brands from $270.00 to $260.00 and set a “hold” rating for the company in a research note on Wednesday. Truist Financial dropped their price target on Constellation Brands from $265.00 to $255.00 and set a “hold” rating for the company in a research report on Friday, October 4th. BNP Paribas started coverage on Constellation Brands in a report on Monday, November 25th. They issued a “neutral” rating and a $261.00 price objective on the stock. Barclays dropped their target price on shares of Constellation Brands from $300.00 to $282.00 and set an “overweight” rating for the company in a report on Wednesday. Finally, BMO Capital Markets decreased their price target on shares of Constellation Brands from $315.00 to $305.00 and set an “outperform” rating on the stock in a research note on Tuesday, October 15th. Five analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. According to MarketBeat.com, Constellation Brands has an average rating of “Moderate Buy” and a consensus target price of $284.75.

Insider Buying and Selling at Constellation Brands

In other Constellation Brands news, EVP Samuel J. Glaetzer sold 1,510 shares of the company’s stock in a transaction on Monday, October 14th. The stock was sold at an average price of $245.57, for a total transaction of $370,810.70. Following the transaction, the executive vice president now directly owns 4,970 shares in the company, valued at $1,220,482.90. This represents a 23.30 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO William A. Newlands sold 25,000 shares of Constellation Brands stock in a transaction on Thursday, November 14th. The shares were sold at an average price of $243.58, for a total value of $6,089,500.00. Following the completion of the sale, the chief executive officer now directly owns 7,274 shares of the company’s stock, valued at $1,771,800.92. The trade was a 77.46 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 189,956 shares of company stock valued at $46,058,091 over the last 90 days. 12.19% of the stock is owned by insiders.

Institutional Trading of Constellation Brands

Several hedge funds have recently made changes to their positions in STZ. Jacobs & Co. CA lifted its holdings in Constellation Brands by 4.2% during the 4th quarter. Jacobs & Co. CA now owns 39,189 shares of the company’s stock worth $8,660,000 after buying an additional 1,564 shares in the last quarter. Wealth Enhancement Advisory Services LLC raised its stake in shares of Constellation Brands by 66.3% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 369,966 shares of the company’s stock valued at $81,762,000 after acquiring an additional 147,457 shares in the last quarter. Ables Iannone Moore & Associates Inc. raised its stake in shares of Constellation Brands by 9.0% in the fourth quarter. Ables Iannone Moore & Associates Inc. now owns 8,726 shares of the company’s stock valued at $1,929,000 after acquiring an additional 718 shares in the last quarter. Doliver Advisors LP purchased a new position in Constellation Brands in the fourth quarter valued at $348,000. Finally, Nordea Investment Management AB grew its stake in Constellation Brands by 10.7% during the 4th quarter. Nordea Investment Management AB now owns 164,505 shares of the company’s stock worth $36,446,000 after purchasing an additional 15,942 shares in the last quarter. Institutional investors and hedge funds own 77.34% of the company’s stock.

Constellation Brands Trading Down 17.2 %

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 company has a market cap of $32.97 billion, a PE ratio of 58.76, a P/E/G ratio of 1.69 and a beta of 1.75. The company has a fifty day simple moving average of $231.88 and a two-hundred day simple moving average of $241.56.

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.