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

Shares of Constellation Brands, Inc. (NYSE:STZ) reached a new 52-week low on Monday . The stock traded as low as $220.20 and last traded at $220.65, with a volume of 113778 shares changing hands. The stock had previously closed at $222.71.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. Needham & Company LLC restated a “buy” rating and set a $280.00 target price on shares of Constellation Brands in a research report on Friday, December 20th. Truist Financial cut their price objective on Constellation Brands from $265.00 to $255.00 and set a “hold” rating for the company in a report on Friday, October 4th. UBS Group reduced their target price on shares of Constellation Brands from $320.00 to $295.00 and set a “buy” rating on the stock in a research note on Monday, September 9th. Roth Mkm reiterated a “buy” rating and set a $298.00 target price on shares of Constellation Brands in a research report on Friday, October 4th. Finally, JPMorgan Chase & Co. cut their price target on shares of Constellation Brands from $307.00 to $293.00 and set an “overweight” rating for the company in a report on Friday, October 4th. Five equities research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $288.70.

Constellation Brands Stock Performance

The stock has a market cap of $40.28 billion, a price-to-earnings ratio of 71.79, a P/E/G ratio of 1.69 and a beta of 1.75. The company has a current ratio of 1.25, a quick ratio of 0.53 and a debt-to-equity ratio of 1.31. The firm has a fifty day simple moving average of $236.05 and a 200-day simple moving average of $244.41.

Constellation Brands (NYSE:STZ) last issued its quarterly earnings results on Thursday, October 3rd. The company reported $4.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.08 by $0.24. The business had revenue of $2.92 billion for the quarter, compared to analyst estimates of $2.95 billion. Constellation Brands had a return on equity of 25.34% and a net margin of 5.29%. The firm’s revenue for the quarter was up 2.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.70 earnings per share. Analysts forecast that Constellation Brands, Inc. will post 13.57 EPS for the current fiscal year.

Constellation Brands Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, November 21st. Stockholders of record on Tuesday, November 5th were given a dividend of $1.01 per share. This represents a $4.04 annualized dividend and a dividend yield of 1.82%. The ex-dividend date was Tuesday, November 5th. Constellation Brands’s dividend payout ratio is 130.74%.

Insider Buying and Selling

In other Constellation Brands news, Director Robert Sands sold 119,274 shares of the firm’s stock in a transaction dated Wednesday, October 16th. The stock was sold at an average price of $242.37, for a total transaction of $28,908,439.38. Following the transaction, the director now owns 431,729 shares in the company, valued at approximately $104,638,157.73. This trade represents a 21.65 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO William A. Newlands sold 7,426 shares of the business’s stock in a transaction dated Tuesday, October 29th. The stock was sold at an average price of $237.24, for a total value of $1,761,744.24. Following the transaction, the chief executive officer now owns 7,274 shares of the company’s stock, valued at $1,725,683.76. The trade was a 50.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 189,956 shares of company stock valued at $46,058,091 over the last ninety days. Insiders own 12.19% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Hantz Financial Services Inc. bought a new position in shares of Constellation Brands during the second quarter worth $1,042,000. Rothschild Investment LLC bought a new position in Constellation Brands during the second quarter worth about $105,000. Concurrent Investment Advisors LLC grew its stake in Constellation Brands by 17.7% in the second quarter. Concurrent Investment Advisors LLC now owns 1,043 shares of the company’s stock valued at $268,000 after acquiring an additional 157 shares during the period. Banque Cantonale Vaudoise increased its holdings in shares of Constellation Brands by 80.8% in the second quarter. Banque Cantonale Vaudoise now owns 4,880 shares of the company’s stock worth $1,256,000 after acquiring an additional 2,181 shares in the last quarter. Finally, Aptus Capital Advisors LLC raised its position in shares of Constellation Brands by 4.4% during the second quarter. Aptus Capital Advisors LLC now owns 1,221 shares of the company’s stock worth $314,000 after purchasing an additional 51 shares during the period. Institutional investors own 77.34% of the company’s stock.

About Constellation Brands

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.