Constellation Brands Inc (NYSE:STZ) Receives $165.14 Average Target Price from Brokerages

Constellation Brands Inc (NYSE:STZ) has been given an average recommendation of “Hold” by the twenty-three ratings firms that are covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and twelve have given a buy rating to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $163.00.

A number of brokerages have recently weighed in on STZ. Piper Sandler reaffirmed a “neutral” rating and set a $160.00 target price on shares of Constellation Brands in a research note on Wednesday, July 1st. Deutsche Bank Aktiengesellschaft dropped their target price on shares of Constellation Brands from $150.00 to $136.00 and set a “hold” rating on the stock in a research note on Friday, September 11th. JPMorgan Chase & Co. reduced their price objective on Constellation Brands from $169.00 to $165.00 and set a “neutral” rating for the company in a report on Thursday, July 2nd. Royal Bank Of Canada restated an “outperform” rating and issued a $185.00 price target on shares of Constellation Brands in a research note on Thursday, July 2nd. Finally, Barclays lowered their target price on Constellation Brands from $132.00 to $122.00 and set an “equal weight” rating on the stock in a report on Tuesday.

Constellation Brands Stock Down 0.8%

Shares of NYSE STZ opened at $117.46 on Friday. The business has a 50-day simple moving average of $129.90 and a two-hundred day simple moving average of $141.17. The company has a market cap of $20.06 billion, a P/E ratio of 11.21, a P/E/G ratio of 2.34 and a beta of 0.41. Constellation Brands has a 52 week low of $116.93 and a 52 week high of $168.60. The company has a quick ratio of 0.48, a current ratio of 0.91 and a debt-to-equity ratio of 1.06.

Constellation Brands (NYSE:STZ) last announced its earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share for the quarter, missing analysts’ consensus estimates of $3.70 by ($0.27). Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The company had revenue of $2.43 billion during the quarter, compared to analysts’ expectations of $2.39 billion. During the same period in the prior year, the business earned $3.22 earnings per share. The company’s revenue for the quarter was down 3.3% compared to the same quarter last year. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Research analysts anticipate that Constellation Brands will post 11.84 earnings per share for the current fiscal year.

Constellation Brands Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 13th. Shareholders of record on Thursday, July 30th were given a $1.03 dividend. The ex-dividend date was Thursday, July 30th. This represents a $4.12 annualized dividend and a yield of 3.5%. Constellation Brands’s dividend payout ratio (DPR) is presently 39.31%.

Institutional Investors Weigh In On Constellation Brands

Hedge funds and other institutional investors have recently modified their holdings of the stock. Capital International Investors lifted its holdings in Constellation Brands by 48.5% in the 4th quarter. Capital International Investors now owns 6,442,600 shares of the company’s stock worth $888,930,000 after purchasing an additional 2,105,546 shares in the last quarter. Norges Bank bought a new stake in shares of Constellation Brands during the fourth quarter valued at approximately $267,798,000. Nykredit A S purchased a new position in shares of Constellation Brands in the second quarter worth $83,687,000. Pzena Investment Management LLC bought a new position in shares of Constellation Brands during the fourth quarter worth $81,381,000. Finally, Capital World Investors grew its stake in Constellation Brands by 8.3% during the fourth quarter. Capital World Investors now owns 7,238,575 shares of the company’s stock valued at $998,740,000 after acquiring an additional 553,974 shares in the last quarter. 77.34% of the stock is currently owned by hedge funds and other institutional investors.

Constellation Brands Company Profile

Constellation Brands, Inc (NYSE: STZ) is a beverage alcohol company that produces, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Corona Extra, Modelo Especial, Modelo Negra, Pacifico and Victoria, along with wine brands including Robert Mondavi, The Prisoner, Kim Crawford and Meiomi. Its spirits portfolio includes brands such as Casa Noble tequila and High West whiskey.

The company’s beer business is focused primarily on the United States, where Constellation markets and sells Mexican beer brands brewed by its production operations in Mexico.