Constellation Brands (STZ) Earns “Outperform” Rating from Wells Fargo & Co

Wells Fargo & Co reiterated their outperform rating on shares of Constellation Brands (NYSE:STZ) in a research note published on Thursday morning, The Fly reports. The brokerage currently has a $235.00 price target on the stock, down from their prior price target of $260.00.

Other equities research analysts have also issued reports about the stock. Macquarie set a $245.00 price objective on shares of Constellation Brands and gave the company a buy rating in a research note on Friday, October 5th. Barclays set a $257.00 target price on shares of Constellation Brands and gave the stock a buy rating in a research note on Friday, October 5th. Bank of America increased their target price on shares of Constellation Brands from $235.00 to $240.00 and gave the stock a buy rating in a research note on Friday, October 5th. Deutsche Bank increased their target price on shares of Constellation Brands from $233.00 to $245.00 and gave the stock a buy rating in a research note on Friday, October 5th. Finally, Jefferies Financial Group reissued a buy rating and set a $283.00 target price on shares of Constellation Brands in a research note on Tuesday, October 2nd. One 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 company. Constellation Brands currently has a consensus rating of Buy and a consensus target price of $228.09.

NYSE:STZ opened at $159.21 on Thursday. The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.76 and a current ratio of 1.66. Constellation Brands has a 52 week low of $150.37 and a 52 week high of $236.62. The firm has a market capitalization of $28.60 billion, a PE ratio of 18.26, a PEG ratio of 1.57 and a beta of 0.38.

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

The company also recently announced a quarterly dividend, which will be paid on Tuesday, February 26th. Stockholders of record on Tuesday, February 12th will be issued a $0.74 dividend. The ex-dividend date is Monday, February 11th. This represents a $2.96 annualized dividend and a dividend yield of 1.86%. Constellation Brands’s dividend payout ratio is currently 10.67%.

In other news, Chairman Richard Sands sold 148,773 shares of the stock in a transaction dated Monday, October 22nd. The shares were sold at an average price of $223.69, for a total value of $33,279,032.37. Following the completion of the sale, the chairman now owns 346,525 shares in the company, valued at $77,514,177.25. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, 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 sale, the chief executive officer now owns 737,607 shares of the company’s stock, valued at approximately $164,980,557.69. The disclosure for this sale can be found here. In the last quarter, insiders sold 578,723 shares of company stock valued at $129,438,449. 15.80% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of STZ. Carroll Financial Associates Inc. boosted its position in Constellation Brands by 132.0% during the fourth quarter. Carroll Financial Associates Inc. now owns 283 shares of the company’s stock worth $48,000 after purchasing an additional 161 shares during the period. Atlantic Trust LLC bought a new position in Constellation Brands during the second quarter worth about $114,000. TLP Group LLC bought a new position in Constellation Brands during the third quarter worth about $136,000. Truvestments Capital LLC bought a new position in Constellation Brands during the third quarter worth about $137,000. Finally, Benjamin F. Edwards & Company Inc. boosted its position in Constellation Brands by 49.3% during the third quarter. Benjamin F. Edwards & Company Inc. now owns 787 shares of the company’s stock worth $170,000 after purchasing an additional 260 shares during the period. Institutional investors and hedge funds own 72.56% of the company’s stock.

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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