Constellation Brands (NYSE:STZ) Shares Up 3.1% – Should You Buy?

Constellation Brands, Inc. (NYSE:STZ) shares were up 3.1% during trading on Wednesday . The stock traded as high as $184.01 and last traded at $183.91. Approximately 847,221 shares traded hands during mid-day trading, a decline of 46% from the average daily volume of 1,572,297 shares. The stock had previously closed at $178.36.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on STZ shares. Needham & Company LLC cut their price target on Constellation Brands from $240.00 to $215.00 and set a “buy” rating on the stock in a report on Thursday. UBS Group cut their target price on Constellation Brands from $265.00 to $223.00 and set a “buy” rating on the stock in a report on Friday, January 17th. Evercore ISI decreased their price target on shares of Constellation Brands from $300.00 to $250.00 and set an “outperform” rating for the company in a research note on Monday, January 13th. Piper Sandler lowered shares of Constellation Brands from an “overweight” rating to a “neutral” rating and dropped their price objective for the company from $245.00 to $200.00 in a research note on Monday, February 3rd. Finally, Wells Fargo & Company reduced their price objective on shares of Constellation Brands from $295.00 to $275.00 and set an “overweight” rating for the company in a report on Tuesday, January 7th. One analyst has rated the stock with a sell rating, eleven have given a hold rating and eleven have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Constellation Brands currently has a consensus rating of “Hold” and a consensus target price of $249.18.

Constellation Brands Price Performance

The business’s 50-day moving average price is $177.20 and its 200 day moving average price is $215.45. The company has a market capitalization of $33.20 billion, a P/E ratio of 49.38, a price-to-earnings-growth ratio of 1.52 and a beta of 1.75. The company has a quick ratio of 0.46, a current ratio of 1.10 and a debt-to-equity ratio of 1.26.

Constellation Brands (NYSE:STZ) last announced its quarterly earnings data 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). The business had revenue of $2.46 billion during the quarter, compared to analysts’ expectations of $2.53 billion. Constellation Brands had a net margin of 6.27% and a return on equity of 26.55%. Constellation Brands’s revenue for the quarter was down .3% on a year-over-year basis. During the same period last year, the company posted $3.19 EPS. Analysts anticipate that Constellation Brands, Inc. will post 13.5 EPS for the current fiscal year.

Constellation Brands Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, February 21st. Stockholders of record on Friday, February 7th were paid a $1.01 dividend. This represents a $4.04 dividend on an annualized basis and a dividend yield of 2.20%. The ex-dividend date of this dividend was Friday, February 7th. Constellation Brands’s dividend payout ratio (DPR) is presently 108.60%.

Insider Buying and Selling

In other news, Director William T. Giles purchased 1,000 shares of the company’s stock in a transaction on Friday, January 17th. The stock was acquired at an average price of $186.39 per share, with a total value of $186,390.00. Following the transaction, the director now directly 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website. 12.19% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Constellation Brands

Hedge funds and other institutional investors have recently modified their holdings of the company. Mainstream Capital Management LLC bought a new stake in shares of Constellation Brands in the fourth quarter worth about $25,000. SBI Securities Co. Ltd. bought a new stake in shares of Constellation Brands in the 4th quarter worth approximately $26,000. Compagnie Lombard Odier SCmA purchased a new position in shares of Constellation Brands during the fourth quarter valued at approximately $27,000. Union Bancaire Privee UBP SA bought a new position in shares of Constellation Brands during the fourth quarter valued at approximately $28,000. Finally, Minot DeBlois Advisors LLC purchased a new stake in Constellation Brands in the fourth quarter worth $29,000. 77.34% of the stock is owned by institutional investors.

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.