Constellation Brands (NYSE:STZ) Sets New 1-Year Low – Here’s Why

Constellation Brands, Inc. (NYSE:STZ) shares reached a new 52-week low during mid-day trading on Monday . The company traded as low as $165.81 and last traded at $165.64, with a volume of 1127001 shares trading hands. The stock had previously closed at $169.00.

Wall Street Analyst Weigh In

Several research firms have weighed in on STZ. Jefferies Financial Group reiterated a “hold” rating and set a $201.00 price objective (down previously from $310.00) on shares of Constellation Brands in a research report on Monday, January 13th. Barclays dropped their price objective on Constellation Brands from $282.00 to $214.00 and set an “overweight” rating for the company in a research report on Tuesday, January 14th. Wells Fargo & Company decreased their price target on shares of Constellation Brands from $295.00 to $275.00 and set an “overweight” rating on the stock in a report on Tuesday, January 7th. UBS Group lowered their price target on shares of Constellation Brands from $265.00 to $223.00 and set a “buy” rating for the company in a report on Friday, January 17th. Finally, BMO Capital Markets cut their price objective on Constellation Brands from $315.00 to $305.00 and set an “outperform” rating on the stock in a report on Tuesday, October 15th. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating and twelve have issued a buy rating to the company’s stock. According to MarketBeat, Constellation Brands currently has an average rating of “Moderate Buy” and an average price target of $254.29.

Constellation Brands Stock Performance

The company’s 50 day moving average price is $205.95 and its 200-day moving average price is $229.94. The company has a market cap of $29.12 billion, a PE ratio of 43.31, a price-to-earnings-growth ratio of 1.51 and a beta of 0.90. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.46 and a current ratio of 1.10.

Constellation Brands (NYSE:STZ) last posted its earnings results on Friday, January 10th. The company reported $3.25 earnings per share for the quarter, missing the consensus estimate of $3.33 by ($0.08). Constellation Brands had a return on equity of 26.55% and a net margin of 6.27%. The business had revenue of $2.46 billion during the quarter, compared to analysts’ expectations of $2.53 billion. During the same quarter in the previous year, the business earned $3.19 EPS. Constellation Brands’s revenue for the quarter was down .3% on a year-over-year basis. Equities research analysts anticipate that Constellation Brands, Inc. will post 13.5 earnings per share for the current fiscal year.

Constellation Brands Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, February 21st. Stockholders of record on Friday, February 7th will be given a dividend of $1.01 per share. The ex-dividend date of this dividend is Friday, February 7th. This represents a $4.04 dividend on an annualized basis and a dividend yield of 2.51%. Constellation Brands’s dividend payout ratio (DPR) is currently 108.60%.

Insider Buying and Selling

In other news, Director William T. Giles acquired 1,000 shares of the firm’s stock in a transaction that occurred on Friday, January 17th. The shares were bought at an average cost of $186.39 per share, with a total value of $186,390.00. Following the acquisition, the director now owns 1,463 shares in the company, valued at approximately $272,688.57. This represents a 215.98 % increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO William A. Newlands sold 25,000 shares of the business’s stock in a transaction on Thursday, November 14th. The stock was sold at an average price of $243.58, for a total transaction of $6,089,500.00. Following the completion of the sale, the chief executive officer now directly owns 7,274 shares of the company’s stock, valued at $1,771,800.92. This represents a 77.46 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 61,746 shares of company stock worth $15,017,097 over the last ninety days. 12.19% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Constellation Brands

Institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new position in Constellation Brands during the 4th quarter valued at $445,883,000. Vanguard Group Inc. boosted its stake in shares of Constellation Brands by 13.3% during the 4th quarter. Vanguard Group Inc. now owns 15,534,787 shares of the company’s stock valued at $3,433,188,000 after purchasing an additional 1,821,969 shares in the last quarter. Van ECK Associates Corp increased its position in shares of Constellation Brands by 1,844.7% during the fourth quarter. Van ECK Associates Corp now owns 924,274 shares of the company’s stock valued at $204,265,000 after buying an additional 876,745 shares during the period. International Assets Investment Management LLC raised its stake in Constellation Brands by 23,184.7% in the third quarter. International Assets Investment Management LLC now owns 499,689 shares of the company’s stock worth $128,765,000 after buying an additional 497,543 shares in the last quarter. Finally, Raymond James Financial Inc. purchased a new stake in Constellation Brands in the fourth quarter worth about $105,766,000. Hedge funds and other institutional investors 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.