StockNews.com Downgrades Constellation Brands (NYSE:STZ) to Sell

Constellation Brands (NYSE:STZ) was downgraded by stock analysts at StockNews.com from a “hold” rating to a “sell” rating in a research report issued on Wednesday.

Other research analysts also recently issued reports about the stock. Jefferies Financial Group reiterated a “hold” rating and issued a $201.00 price target (down from $310.00) on shares of Constellation Brands in a research report on Monday, January 13th. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $203.00 target price (down from $262.00) on shares of Constellation Brands in a report on Monday, January 13th. Evercore ISI cut their price target on Constellation Brands from $300.00 to $250.00 and set an “outperform” rating for the company in a report on Monday, January 13th. Wells Fargo & Company decreased 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. Finally, BNP Paribas started coverage on Constellation Brands in a research report on Monday, November 25th. They set a “neutral” rating and a $261.00 price objective on the stock. One research analyst has rated the stock with a sell rating, ten have issued a hold rating and eleven have given a buy rating to the company. According to data from MarketBeat, Constellation Brands currently has a consensus rating of “Hold” and an average price target of $253.43.

Constellation Brands Stock Performance

Shares of STZ opened at $173.43 on Wednesday. The firm has a market capitalization of $31.34 billion, a P/E ratio of 46.62, a PEG ratio of 1.52 and a beta of 1.75. The company has a debt-to-equity ratio of 1.26, a current ratio of 1.10 and a quick ratio of 0.46. Constellation Brands has a one year low of $160.46 and a one year high of $274.87. The business has a fifty day moving average of $190.04 and a 200 day moving average of $224.16.

Constellation Brands (NYSE:STZ) last released its quarterly earnings results on Friday, January 10th. The company reported $3.25 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.33 by ($0.08). Constellation Brands had a net margin of 6.27% and a return on equity of 26.55%. The firm had revenue of $2.46 billion for the quarter, compared to the consensus estimate of $2.53 billion. During the same quarter in the prior year, the firm earned $3.19 earnings per share. The company’s revenue for the quarter was down .3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Constellation Brands will post 13.5 EPS for the current year.

Insider Buying and Selling

In related news, Director William T. Giles purchased 1,000 shares of the firm’s stock in a transaction that occurred on Friday, January 17th. The shares were bought at an average price of $186.39 per share, for a total transaction of $186,390.00. Following the acquisition, the director now owns 1,463 shares of the company’s stock, valued at approximately $272,688.57. This represents a 215.98 % increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 12.19% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Constellation Brands

Several institutional investors have recently made changes to their positions in STZ. Berkshire Hathaway Inc purchased a new position in Constellation Brands in the 4th quarter worth about $1,242,976,000. Norges Bank bought a new stake in shares of Constellation Brands in the fourth quarter valued at about $445,883,000. Vanguard Group Inc. lifted its stake in Constellation Brands by 13.3% in the fourth quarter. Vanguard Group Inc. now owns 15,534,787 shares of the company’s stock worth $3,433,188,000 after acquiring an additional 1,821,969 shares during the period. D1 Capital Partners L.P. grew its holdings in Constellation Brands by 186.6% during the 4th quarter. D1 Capital Partners L.P. now owns 1,527,689 shares of the company’s stock worth $337,619,000 after acquiring an additional 994,639 shares in the last quarter. Finally, Van ECK Associates Corp increased its position in Constellation Brands by 1,844.7% during the 4th quarter. Van ECK Associates Corp now owns 924,274 shares of the company’s stock valued at $204,265,000 after purchasing an additional 876,745 shares during the period. Institutional investors own 77.34% of the company’s stock.

About Constellation Brands

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.