Constellation Brands (NYSE:STZ) Cut to “Sell” at StockNews.com

StockNews.com downgraded shares of Constellation Brands (NYSE:STZ) from a hold rating to a sell rating in a research note published on Wednesday morning.

A number of other analysts have also recently commented on STZ. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $203.00 price target (down from $262.00) on shares of Constellation Brands in a research note on Monday, January 13th. BMO Capital Markets lowered their price target on Constellation Brands from $315.00 to $305.00 and set an “outperform” rating for the company in a research note on Tuesday, October 15th. Royal Bank of Canada reissued an “outperform” rating and set a $293.00 target price on shares of Constellation Brands in a research note on Monday, February 3rd. Argus cut Constellation Brands from a “buy” rating to a “hold” rating in a research note on Tuesday, January 14th. Finally, Needham & Company LLC reissued a “buy” rating and set a $240.00 target price on shares of Constellation Brands in a research note on Monday, January 27th. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating and twelve have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Constellation Brands has a consensus rating of “Moderate Buy” and an average target price of $254.29.

Constellation Brands Price Performance

Shares of STZ stock opened at $169.05 on Wednesday. The firm has a market cap of $30.55 billion, a price-to-earnings ratio of 45.44, a PEG ratio of 1.59 and a beta of 0.90. Constellation Brands has a 12 month low of $166.02 and a 12 month high of $274.87. The stock has a 50-day moving average price of $210.28 and a 200 day moving average price of $231.88. 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 results on Friday, January 10th. The company reported $3.25 EPS for the quarter, missing analysts’ consensus estimates of $3.33 by ($0.08). The company had revenue of $2.46 billion during the quarter, compared to the consensus estimate of $2.53 billion. Constellation Brands had a net margin of 6.27% and a return on equity of 26.55%. The business’s revenue was down .3% compared to the same quarter last year. During the same period last year, the company earned $3.19 earnings per share. Research analysts expect that Constellation Brands will post 13.52 EPS for the current year.

Constellation Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 21st. Stockholders of record on Friday, February 7th will be issued a $1.01 dividend. This represents a $4.04 annualized dividend and a dividend yield of 2.39%. The ex-dividend date is Friday, February 7th. Constellation Brands’s payout ratio is presently 108.60%.

Insider Activity

In other news, CEO William A. Newlands sold 25,000 shares of the stock in a transaction that occurred on Thursday, November 14th. The stock was sold at an average price of $243.58, for a total value of $6,089,500.00. Following the completion of the sale, the chief executive officer now owns 7,274 shares of the company’s stock, valued at approximately $1,771,800.92. This represents a 77.46 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP James A. Jr. Sabia sold 36,086 shares of the stock in a transaction that occurred on Thursday, November 14th. The shares were sold at an average price of $242.99, for a total value of $8,768,537.14. Following the completion of the sale, the executive vice president now directly owns 16,042 shares of the company’s stock, valued at approximately $3,898,045.58. The trade was a 69.23 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 61,746 shares of company stock valued at $15,017,097. 12.19% of the stock is owned by insiders.

Institutional Investors Weigh In On Constellation Brands

Several hedge funds have recently added to or reduced their stakes in the business. Sequoia Financial Advisors LLC lifted its holdings in Constellation Brands by 13.2% during the 4th quarter. Sequoia Financial Advisors LLC now owns 5,615 shares of the company’s stock valued at $1,241,000 after purchasing an additional 654 shares during the last quarter. PFG Advisors lifted its holdings in Constellation Brands by 12.4% during the 4th quarter. PFG Advisors now owns 1,882 shares of the company’s stock valued at $416,000 after purchasing an additional 208 shares during the last quarter. Wealthfront Advisers LLC lifted its holdings in Constellation Brands by 547.1% during the 4th quarter. Wealthfront Advisers LLC now owns 20,080 shares of the company’s stock valued at $4,438,000 after purchasing an additional 16,977 shares during the last quarter. Briaud Financial Planning Inc acquired a new stake in Constellation Brands during the 4th quarter valued at $110,000. Finally, King Luther Capital Management Corp lifted its holdings in Constellation Brands by 7.1% during the 4th quarter. King Luther Capital Management Corp now owns 1,511 shares of the company’s stock valued at $334,000 after purchasing an additional 100 shares during the last quarter. 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.