Constellation Brands (NYSE:STZ) Trading 3.1% Higher – Still a Buy?

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

Analysts Set New Price Targets

Several research firms recently weighed in on STZ. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $203.00 price objective (down from $262.00) on shares of Constellation Brands in a research note on Monday, January 13th. Wells Fargo & Company cut their price target on Constellation Brands from $295.00 to $275.00 and set an “overweight” rating for the company in a research note on Tuesday, January 7th. Argus lowered shares of Constellation Brands from a “buy” rating to a “hold” rating in a research report on Tuesday, January 14th. Piper Sandler cut shares of Constellation Brands from an “overweight” rating to a “neutral” rating and cut their target price for the stock from $245.00 to $200.00 in a research report on Monday, February 3rd. Finally, UBS Group reduced their price target on shares of Constellation Brands from $265.00 to $223.00 and set a “buy” rating on the stock in a report on Friday, January 17th. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and eleven have given a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $250.41.

Constellation Brands Stock Up 3.2 %

The stock has a market cap of $33.28 billion, a price-to-earnings ratio of 49.46, a price-to-earnings-growth ratio of 1.52 and a beta of 0.90. The firm’s 50-day moving average is $177.14 and its 200 day moving average is $215.89. 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 (NYSE:STZ) last released its quarterly earnings data 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 return on equity of 26.55% and a net margin of 6.27%. The firm had revenue of $2.46 billion for the quarter, compared to analyst estimates of $2.53 billion. During the same quarter in the previous year, the company earned $3.19 earnings per share. The company’s quarterly revenue was down .3% on a year-over-year basis. Sell-side analysts anticipate that Constellation Brands, Inc. will post 13.5 earnings per share for the current fiscal year.

Constellation Brands Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, February 21st. Stockholders of record on Friday, February 7th were issued a dividend of $1.01 per share. This represents a $4.04 dividend on an annualized basis and a dividend yield of 2.19%. The ex-dividend date was Friday, February 7th. Constellation Brands’s payout ratio is currently 108.60%.

Insider Buying and Selling

In other Constellation Brands news, Director William T. Giles acquired 1,000 shares of the firm’s stock in a transaction on Friday, January 17th. The stock was bought at an average cost of $186.39 per share, for a total transaction of $186,390.00. Following the completion of the purchase, the director now directly owns 1,463 shares in the company, valued at $272,688.57. This represents a 215.98 % increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 12.19% of the company’s stock.

Hedge Funds Weigh In On Constellation Brands

Several hedge funds and other institutional investors have recently made changes to their positions in STZ. Mainstream Capital Management LLC purchased a new position in Constellation Brands in the fourth quarter valued at about $25,000. SBI Securities Co. Ltd. purchased a new stake in shares of Constellation Brands during the 4th quarter valued at about $26,000. Compagnie Lombard Odier SCmA acquired a new position in Constellation Brands during the 4th quarter worth approximately $27,000. Union Bancaire Privee UBP SA purchased a new position in Constellation Brands in the 4th quarter worth approximately $28,000. Finally, Minot DeBlois Advisors LLC acquired a new stake in Constellation Brands in the fourth quarter valued at approximately $29,000. 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.