Traders Buy Constellation Brands (STZ) on Weakness

Investors bought shares of Constellation Brands, Inc. (NYSE:STZ) on weakness during trading on Friday. $125.79 million flowed into the stock on the tick-up and $86.95 million flowed out of the stock on the tick-down, for a money net flow of $38.84 million into the stock. Of all stocks tracked, Constellation Brands had the 21st highest net in-flow for the day. Constellation Brands traded down ($1.53) for the day and closed at $217.52

Several research analysts recently weighed in on the stock. Barclays assumed coverage on shares of Constellation Brands in a research report on Wednesday. They set an “overweight” rating and a $255.00 price target for the company. Credit Suisse Group upped their price target on shares of Constellation Brands from $211.00 to $226.00 and gave the stock a “neutral” rating in a research report on Tuesday, January 9th. SunTrust Banks restated a “buy” rating and set a $250.00 price target (up previously from $230.00) on shares of Constellation Brands in a research report on Monday, January 8th. Susquehanna Bancshares set a $207.00 price target on shares of Constellation Brands and gave the stock a “hold” rating in a research report on Sunday, January 7th. Finally, Evercore ISI upped their price target on shares of Constellation Brands from $235.00 to $250.00 and gave the stock an “outperform” rating in a research report on Friday, January 5th. One research analyst has rated the stock with a sell rating, six have given a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the stock. Constellation Brands has an average rating of “Buy” and a consensus price target of $229.00.

The firm has a market cap of $42,651.23, a P/E ratio of 23.69, a PEG ratio of 1.35 and a beta of 0.08. The company has a current ratio of 1.40, a quick ratio of 0.69 and a debt-to-equity ratio of 1.01.

Constellation Brands (NYSE:STZ) last announced its quarterly earnings data on Friday, January 5th. The company reported $2.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.87 by $0.13. Constellation Brands had a net margin of 27.50% and a return on equity of 24.74%. The company had revenue of $1.98 billion during the quarter, compared to analysts’ expectations of $1.87 billion. During the same quarter in the prior year, the company earned $1.96 EPS. analysts anticipate that Constellation Brands, Inc. will post 8.53 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 23rd. Investors of record on Friday, February 9th will be paid a dividend of $0.52 per share. The ex-dividend date is Thursday, February 8th. This represents a $2.08 annualized dividend and a yield of 0.96%. Constellation Brands’s dividend payout ratio is presently 22.66%.

Constellation Brands announced that its Board of Directors has initiated a stock repurchase plan on Friday, January 5th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the company to buy shares of its stock through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

In other news, VP Thomas J. Mullin sold 50,000 shares of the stock in a transaction that occurred on Monday, October 16th. The shares were sold at an average price of $209.45, for a total value of $10,472,500.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Thomas J. Mullin sold 18,227 shares of the stock in a transaction that occurred on Wednesday, November 8th. The shares were sold at an average price of $217.01, for a total transaction of $3,955,441.27. Following the completion of the sale, the vice president now directly owns 72,924 shares of the company’s stock, valued at approximately $15,825,237.24. The disclosure for this sale can be found here. 15.59% of the stock is currently owned by corporate insiders.

Institutional investors have recently bought and sold shares of the company. Oppenheimer Asset Management Inc. grew its stake in shares of Constellation Brands by 50.3% in the 2nd quarter. Oppenheimer Asset Management Inc. now owns 577 shares of the company’s stock valued at $112,000 after buying an additional 193 shares during the period. Valeo Financial Advisors LLC purchased a new stake in shares of Constellation Brands in the 3rd quarter valued at approximately $153,000. MPS Loria Financial Planners LLC purchased a new stake in shares of Constellation Brands in the 2nd quarter valued at approximately $157,000. Acrospire Investment Management LLC grew its stake in shares of Constellation Brands by 100.0% in the 2nd quarter. Acrospire Investment Management LLC now owns 800 shares of the company’s stock valued at $155,000 after buying an additional 400 shares during the period. Finally, BB&T Investment Services Inc. purchased a new stake in shares of Constellation Brands in the 2nd quarter valued at approximately $179,000. 74.86% of the stock is owned by institutional investors and hedge funds.

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Constellation Brands Company Profile

Constellation Brands, Inc is an international beverage alcohol company. The Company is a producer and marketer of beer, wine and spirits with operations in the United States, Canada, Mexico, New Zealand and Italy. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. It is a multi-category supplier (beer, wine and spirits) of beverage alcohol in the United States.

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