Constellation Brands (NYSE:STZ) Trading Down 4.8% – Here’s Why

Constellation Brands Inc (NYSE:STZ)’s stock price dropped 4.8% during trading on Monday . The stock traded as low as $130.11 and last traded at $130.8170. Approximately 380,363 shares traded hands during mid-day trading, a decline of 83% from the average daily volume of 2,297,844 shares. The stock had previously closed at $137.47.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on STZ. Royal Bank Of Canada reissued an “outperform” rating and issued a $185.00 price objective on shares of Constellation Brands in a report on Thursday. Sanford C. Bernstein reissued an “outperform” rating on shares of Constellation Brands in a research note on Wednesday. Deutsche Bank Aktiengesellschaft lowered their price target on Constellation Brands from $155.00 to $150.00 and set a “hold” rating on the stock in a report on Thursday. Freedom Capital downgraded shares of Constellation Brands from a “strong-buy” rating to a “hold” rating in a report on Wednesday, July 1st. Finally, Needham & Company LLC reissued a “buy” rating and set a $185.00 target price on shares of Constellation Brands in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Constellation Brands currently has a consensus rating of “Hold” and an average price target of $167.89.

Constellation Brands Stock Performance

The company has a quick ratio of 0.48, a current ratio of 0.91 and a debt-to-equity ratio of 1.06. The stock has a market cap of $22.28 billion, a price-to-earnings ratio of 12.36, a price-to-earnings-growth ratio of 4.07 and a beta of 0.39. The company’s 50-day simple moving average is $144.68 and its 200-day simple moving average is $150.05.

Constellation Brands (NYSE:STZ) last announced its quarterly earnings data on Tuesday, June 30th. The company reported $3.43 EPS for the quarter, missing analysts’ consensus estimates of $3.70 by ($0.27). The company had revenue of $2.43 billion for the quarter, compared to analyst estimates of $2.39 billion. Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. Constellation Brands’s revenue was down 3.3% on a year-over-year basis. During the same quarter last year, the company posted $3.22 EPS. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Analysts predict that Constellation Brands Inc will post 11.72 EPS for the current fiscal year.

Constellation Brands Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 13th. Stockholders of record on Thursday, July 30th will be issued a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend is Thursday, July 30th. Constellation Brands’s dividend payout ratio is currently 39.31%.

Insider Buying and Selling at Constellation Brands

In related news, EVP James O. Bourdeau sold 4,407 shares of Constellation Brands stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total value of $631,258.68. Following the transaction, the executive vice president owned 9,109 shares of the company’s stock, valued at approximately $1,304,773.16. This trade represents a 32.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 12.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. MV Capital Management Inc. acquired a new stake in shares of Constellation Brands during the fourth quarter valued at approximately $26,000. Stance Capital LLC purchased a new position in Constellation Brands during the 3rd quarter worth approximately $26,000. Strive Financial Group LLC acquired a new stake in Constellation Brands during the 4th quarter valued at $27,000. GoalVest Advisory LLC purchased a new stake in shares of Constellation Brands in the fourth quarter valued at $28,000. Finally, Cedar Mountain Advisors LLC acquired a new stake in shares of Constellation Brands in the first quarter worth $33,000. 77.34% of the stock is currently owned by institutional investors and hedge funds.

About Constellation Brands

Constellation Brands, Inc is a leading producer and marketer of beer, wine and spirits, with operations spanning production, importation, marketing and distribution. The company’s beverage portfolio includes a range of premium and mainstream wines and spirits alongside major imported beer brands; in the U.S. market Constellation is widely known for its role in bringing Mexican imports such as Corona and Modelo to American consumers. Constellation supplies retail, on‑premise and foodservice channels and supports its brands with national sales and marketing platforms and supply‑chain capabilities.

The company traces its roots to the Canandaigua Wine Company, founded by Marvin Sands in 1945, and evolved through organic growth and acquisition into a diversified beverage company.