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

StockNews.com cut shares of Constellation Brands (NYSE:STZ) from a hold rating to a sell rating in a research report released on Tuesday.

Other equities research analysts have also recently issued research reports about the company. Argus cut Constellation Brands from a “buy” rating to a “hold” rating in a report on Tuesday, January 14th. BMO Capital Markets decreased their price objective on Constellation Brands from $315.00 to $305.00 and set an “outperform” rating on the stock in a report on Tuesday, October 15th. Jefferies Financial Group restated a “hold” rating and set a $201.00 price objective (down previously from $310.00) on shares of Constellation Brands in a report on Monday, January 13th. JPMorgan Chase & Co. restated a “neutral” rating and set a $203.00 price objective (down previously from $262.00) on shares of Constellation Brands in a report on Monday, January 13th. Finally, Royal Bank of Canada reiterated an “outperform” rating and issued a $308.00 target price on shares of Constellation Brands in a report on Tuesday, January 7th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating and thirteen have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $257.14.

Constellation Brands Stock Performance

Constellation Brands stock opened at $184.32 on Tuesday. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.46 and a current ratio of 1.10. The stock has a fifty day moving average of $217.72 and a two-hundred day moving average of $234.79. The company has a market capitalization of $33.31 billion, a price-to-earnings ratio of 49.55, a PEG ratio of 1.58 and a beta of 0.91. Constellation Brands has a fifty-two week low of $176.51 and a fifty-two week high of $274.87.

Constellation Brands (NYSE:STZ) last released its quarterly earnings results on Friday, January 10th. The company reported $3.25 earnings per share for the quarter, missing the consensus estimate of $3.33 by ($0.08). Constellation Brands had a return on equity of 26.55% and a net margin of 6.27%. The company had revenue of $2.46 billion for the quarter, compared to analysts’ expectations of $2.53 billion. During the same period in the previous year, the business posted $3.19 EPS. The business’s quarterly revenue was down .3% on a year-over-year basis. On average, analysts anticipate that Constellation Brands will post 13.52 EPS for the current fiscal year.

Constellation Brands Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 21st. Investors of record on Friday, February 7th will be paid a $1.01 dividend. This represents a $4.04 annualized dividend and a dividend yield of 2.19%. The ex-dividend date of this dividend is Friday, February 7th. Constellation Brands’s dividend payout ratio (DPR) is 108.60%.

Insider Buying and Selling

In related news, CEO William A. Newlands sold 25,000 shares of the business’s stock in a transaction dated Thursday, November 14th. The stock was sold at an average price of $243.58, for a total value of $6,089,500.00. Following the transaction, the chief executive officer now owns 7,274 shares in the company, valued at approximately $1,771,800.92. The trade was a 77.46 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director William T. Giles purchased 1,000 shares of the business’s stock in a transaction that occurred on Friday, January 17th. The stock was acquired at an average price of $186.39 per share, for a total transaction of $186,390.00. Following the purchase, 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 disclosure for this purchase can be found here. Over the last 90 days, insiders have sold 61,746 shares of company stock worth $15,017,097. 12.19% of the stock is currently owned by corporate insiders.

Institutional Trading of Constellation Brands

Several institutional investors and hedge funds have recently bought and sold shares of the company. Oakworth Capital Inc. raised its stake in Constellation Brands by 4.4% during the third quarter. Oakworth Capital Inc. now owns 989 shares of the company’s stock valued at $255,000 after buying an additional 42 shares in the last quarter. PFG Investments LLC raised its stake in Constellation Brands by 3.8% during the third quarter. PFG Investments LLC now owns 1,150 shares of the company’s stock valued at $296,000 after buying an additional 42 shares in the last quarter. Metis Global Partners LLC raised its stake in Constellation Brands by 0.8% during the third quarter. Metis Global Partners LLC now owns 5,570 shares of the company’s stock valued at $1,435,000 after buying an additional 46 shares in the last quarter. Rosenberg Matthew Hamilton raised its stake in Constellation Brands by 6.2% during the third quarter. Rosenberg Matthew Hamilton now owns 858 shares of the company’s stock valued at $221,000 after buying an additional 50 shares in the last quarter. Finally, Strategic Investment Solutions Inc. IL raised its stake in Constellation Brands by 4.6% during the third quarter. Strategic Investment Solutions Inc. IL now owns 1,158 shares of the company’s stock valued at $298,000 after buying an additional 51 shares in the last quarter. Institutional investors and hedge funds own 77.34% of the company’s stock.

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.