Constellation Brands (STZ) Upgraded at Guggenheim

Guggenheim upgraded shares of Constellation Brands (NYSE:STZ) from a sell rating to a neutral rating in a research report released on Wednesday, Marketbeat Ratings reports.

Other equities analysts also recently issued reports about the company. Jefferies Financial Group reiterated a buy rating and issued a $289.00 target price on shares of Constellation Brands in a research report on Wednesday, October 17th. Morgan Stanley set a $259.00 target price on Constellation Brands and gave the company a buy rating in a research report on Tuesday, October 16th. Citigroup increased their target price on Constellation Brands from $235.00 to $240.00 and gave the company a hold rating in a research report on Wednesday, October 10th. Zacks Investment Research upgraded Constellation Brands from a strong sell rating to a hold rating in a research report on Tuesday, October 16th. Finally, ValuEngine upgraded Constellation Brands from a hold rating to a buy rating in a research report on Friday, October 12th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, seventeen have assigned a buy rating and two have issued a strong buy rating to the stock. The stock presently has an average rating of Buy and an average price target of $228.09.

Shares of STZ stock opened at $159.21 on Wednesday. The company has a quick ratio of 0.76, a current ratio of 1.66 and a debt-to-equity ratio of 0.80. Constellation Brands has a twelve month low of $150.37 and a twelve month high of $236.62. The firm has a market cap of $28.60 billion, a P/E ratio of 18.26, a price-to-earnings-growth ratio of 1.57 and a beta of 0.38.

Constellation Brands (NYSE:STZ) last announced its quarterly earnings data on Wednesday, January 9th. The company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.04 by $0.33. Constellation Brands had a return on equity of 18.27% and a net margin of 35.27%. The business had revenue of $1.97 billion during the quarter, compared to the consensus estimate of $1.91 billion. During the same period in the prior year, the company earned $2.00 EPS. Constellation Brands’s revenue for the quarter was up 9.5% on a year-over-year basis. On average, research analysts expect that Constellation Brands will post 9.25 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 26th. Stockholders of record on Tuesday, February 12th will be given a dividend of $0.74 per share. The ex-dividend date is Monday, February 11th. This represents a $2.96 dividend on an annualized basis and a dividend yield of 1.86%. Constellation Brands’s dividend payout ratio (DPR) is 10.67%.

In other news, CEO Robert Sands sold 151,060 shares of the firm’s stock in a transaction dated Monday, October 22nd. The stock was sold at an average price of $223.67, for a total transaction of $33,787,590.20. Following the completion of the transaction, the chief executive officer now directly owns 737,607 shares in the company, valued at $164,980,557.69. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Thomas Michael Kane sold 4,419 shares of the firm’s stock in a transaction dated Friday, October 19th. The stock was sold at an average price of $223.83, for a total value of $989,104.77. Following the transaction, the vice president now owns 8,499 shares of the company’s stock, valued at $1,902,331.17. The disclosure for this sale can be found here. Insiders have sold 578,723 shares of company stock valued at $129,438,449 over the last 90 days. 15.80% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in STZ. TIAA CREF Investment Management LLC grew its stake in Constellation Brands by 98.6% during the third quarter. TIAA CREF Investment Management LLC now owns 1,299,152 shares of the company’s stock worth $280,123,000 after purchasing an additional 644,939 shares during the period. Diamond Hill Capital Management Inc. grew its stake in Constellation Brands by 689.3% during the third quarter. Diamond Hill Capital Management Inc. now owns 584,421 shares of the company’s stock worth $126,013,000 after purchasing an additional 510,376 shares during the period. Third Point LLC grew its stake in Constellation Brands by 20.0% during the third quarter. Third Point LLC now owns 2,400,000 shares of the company’s stock worth $517,488,000 after purchasing an additional 400,000 shares during the period. Mackenzie Financial Corp grew its stake in Constellation Brands by 1,139.7% during the third quarter. Mackenzie Financial Corp now owns 405,600 shares of the company’s stock worth $87,455,000 after purchasing an additional 372,882 shares during the period. Finally, FMR LLC grew its stake in Constellation Brands by 6.0% during the second quarter. FMR LLC now owns 5,969,243 shares of the company’s stock worth $1,306,489,000 after purchasing an additional 337,338 shares during the period. 72.56% of the stock is owned by institutional investors and hedge funds.

About Constellation Brands

Constellation Brands, Inc, together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. It provides beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands.

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Analyst Recommendations for Constellation Brands (NYSE:STZ)

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