Constellation Brands (NYSE:STZ) Shares Gap Down on Disappointing Earnings

Constellation Brands, Inc. (NYSE:STZ) shares gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $219.28, but opened at $203.11. Constellation Brands shares last traded at $201.54, with a volume of 879,275 shares changing hands.

The company reported $3.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.33 by ($0.08). The firm had revenue of $2.46 billion for the quarter, compared to analysts’ expectations of $2.53 billion. Constellation Brands had a return on equity of 25.34% and a net margin of 5.29%. Constellation Brands’s revenue for the quarter was down .3% on a year-over-year basis. During the same period last year, the firm posted $3.19 earnings per share.

Constellation Brands Announces Dividend

The firm also recently announced 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. This represents a $4.04 annualized dividend and a dividend yield of 2.23%. The ex-dividend date of this dividend is Friday, February 7th. Constellation Brands’s dividend payout ratio (DPR) is presently 130.74%.

Wall Street Analysts Forecast Growth

STZ has been the topic of several recent analyst reports. Truist Financial dropped their price target on shares of Constellation Brands from $265.00 to $255.00 and set a “hold” rating on the stock in a research note on Friday, October 4th. Roth Mkm reaffirmed a “buy” rating and issued a $298.00 target price on shares of Constellation Brands in a research report on Friday, October 4th. JPMorgan Chase & Co. reduced their price target on shares of Constellation Brands from $293.00 to $262.00 and set an “overweight” rating for the company in a research report on Tuesday. Barclays dropped their price objective on Constellation Brands from $300.00 to $282.00 and set an “overweight” rating on the stock in a report on Wednesday. Finally, BMO Capital Markets reduced their target price on Constellation Brands from $315.00 to $305.00 and set an “outperform” rating for the company in a report on Tuesday, October 15th. Five analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the stock. Based on data from MarketBeat.com, Constellation Brands has a consensus rating of “Moderate Buy” and an average price target of $284.75.

Insider Transactions at Constellation Brands

In other news, EVP Samuel J. Glaetzer sold 1,510 shares of the company’s stock in a transaction on Monday, October 14th. The shares were sold at an average price of $245.57, for a total transaction of $370,810.70. Following the transaction, the executive vice president now directly owns 4,970 shares of the company’s stock, valued at $1,220,482.90. This represents a 23.30 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO William A. Newlands sold 7,426 shares of the firm’s stock in a transaction dated Tuesday, October 29th. The shares were sold at an average price of $237.24, for a total transaction of $1,761,744.24. Following the completion of the sale, the chief executive officer now owns 7,274 shares of the company’s stock, valued at $1,725,683.76. This trade represents a 50.52 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 189,956 shares of company stock worth $46,058,091 over the last ninety days. 12.19% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Constellation Brands

Hedge funds and other institutional investors have recently bought and sold shares of the company. Ashton Thomas Private Wealth LLC purchased a new stake in shares of Constellation Brands in the 2nd quarter worth about $36,000. Eastern Bank purchased a new stake in shares of Constellation Brands in the third quarter valued at about $39,000. Versant Capital Management Inc grew its position in shares of Constellation Brands by 887.5% in the fourth quarter. Versant Capital Management Inc now owns 158 shares of the company’s stock valued at $35,000 after purchasing an additional 142 shares during the last quarter. FSA Wealth Management LLC purchased a new position in shares of Constellation Brands during the 3rd quarter worth approximately $42,000. Finally, Fairfield Financial Advisors LTD acquired a new position in shares of Constellation Brands during the 2nd quarter worth approximately $57,000. 77.34% of the stock is owned by institutional investors and hedge funds.

Constellation Brands Trading Down 17.2 %

The business has a 50 day moving average of $231.88 and a 200-day moving average of $241.56. The stock has a market cap of $32.97 billion, a PE ratio of 58.76, a price-to-earnings-growth 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.

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.