Zacks Investment Research lowered shares of Constellation Brands (NYSE:STZ) from a buy rating to a hold rating in a research report released on Monday morning.
According to Zacks, “Constellation Brands has surpassed the broader industry year to date, backed by superb surprise history and constant brand-building efforts. The company has been gaining from its efforts to drive consumer demand for its robust brand portfolio. Also, focus on buyouts and continued strength in the beer business has been fuelling its results. Thanks to these endeavours, the company marked its 17th straight quarter of year-over-year earnings growth and 12th straight positive surprise in second-quarter fiscal 2018. The splendid results marked by significant market share gains, solid execution and strong free cash flow keeps management encouraged. Driven by these factors and confidence in its beer segment, management raised its earnings view for fiscal 2018 and operating income target for the beer segment. However, stiff competition and higher taxes remain concerns. Also, the company remains exposed to macroeconomic headwinds.”
Other equities research analysts also recently issued reports about the company. Pivotal Research raised their price target on Constellation Brands from $250.00 to $265.00 and gave the stock a buy rating in a research note on Thursday, October 5th. Susquehanna Bancshares reaffirmed a neutral rating and set a $193.00 price target (up from $169.00) on shares of Constellation Brands in a research note on Monday, October 2nd. Macquarie initiated coverage on Constellation Brands in a report on Thursday, September 14th. They set an outperform rating and a $227.00 price objective on the stock. SunTrust Banks reissued a buy rating and set a $230.00 price objective on shares of Constellation Brands in a report on Friday, October 6th. Finally, Cowen reissued an outperform rating and set a $243.00 price objective (up previously from $230.00) on shares of Constellation Brands in a report on Friday, October 6th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of Buy and a consensus target price of $216.00.
Constellation Brands (NYSE:STZ) last posted its quarterly earnings results on Thursday, October 5th. The company reported $2.47 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.17 by $0.30. Constellation Brands had a return on equity of 26.16% and a net margin of 24.08%. The company had revenue of $2.08 billion during the quarter, compared to the consensus estimate of $2.06 billion. During the same period last year, the business earned $1.77 EPS. The business’s quarterly revenue was up 3.1% on a year-over-year basis. equities research analysts anticipate that Constellation Brands will post 8.43 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Tuesday, November 21st. Shareholders of record on Tuesday, November 7th were issued a $0.52 dividend. This represents a $2.08 dividend on an annualized basis and a yield of 0.95%. The ex-dividend date of this dividend was Monday, November 6th. Constellation Brands’s dividend payout ratio (DPR) is currently 23.85%.
In other Constellation Brands news, VP Thomas J. Mullin sold 50,000 shares of the firm’s stock in a transaction that occurred on Monday, October 16th. The stock was sold at an average price of $209.45, for a total value of $10,472,500.00. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Thomas J. Mullin sold 18,227 shares of the firm’s stock in a transaction that occurred on Wednesday, November 8th. The shares were sold at an average price of $217.01, for a total value of $3,955,441.27. Following the completion of the sale, the vice president now directly owns 72,924 shares in the company, valued at approximately $15,825,237.24. The disclosure for this sale can be found here. Insiders sold a total of 73,662 shares of company stock worth $15,564,585 in the last ninety days. Insiders own 15.59% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Oppenheimer Asset Management Inc. grew its holdings in shares of Constellation Brands by 50.3% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 577 shares of the company’s stock worth $112,000 after purchasing an additional 193 shares in the last quarter. Hanson McClain Inc. grew its holdings in shares of Constellation Brands by 0.4% during the 2nd quarter. Hanson McClain Inc. now owns 772 shares of the company’s stock worth $149,000 after purchasing an additional 3 shares in the last quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. grew its holdings in shares of Constellation Brands by 609.1% during the 2nd quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. now owns 780 shares of the company’s stock worth $151,000 after purchasing an additional 670 shares in the last quarter. Valeo Financial Advisors LLC acquired a new stake in shares of Constellation Brands during the 3rd quarter worth approximately $153,000. Finally, Acrospire Investment Management LLC grew its holdings in shares of Constellation Brands by 100.0% during the 2nd quarter. Acrospire Investment Management LLC now owns 800 shares of the company’s stock worth $155,000 after purchasing an additional 400 shares in the last quarter. 75.04% of the stock is currently owned by hedge funds and other institutional investors.
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About Constellation Brands
Constellation Brands, Inc is an international beverage alcohol company. The Company is a producer and marketer of beer, wine and spirits with operations in the United States, Canada, Mexico, New Zealand and Italy. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. It is a multi-category supplier (beer, wine and spirits) of beverage alcohol in the United States.
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