Constellation Brands (NYSE:STZ) Board Initiates Share Repurchase Program

Constellation Brands (NYSE:STZ) declared that its board has authorized a share buyback plan, which authorizes the company to repurchase $3.00 billion in shares on Friday, January 5th, EventVestor reports. This repurchase authorization authorizes the company to purchase shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Constellation Brands (NYSE:STZ) traded down $0.58 on Wednesday, reaching $219.47. The company had a trading volume of 1,670,000 shares, compared to its average volume of 2,270,000. The company has a market cap of $42,710.00, a P/E ratio of 26.67, a PEG ratio of 1.36 and a beta of 0.08. Constellation Brands has a twelve month low of $147.92 and a twelve month high of $229.50. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.40 and a quick ratio of 0.54.

Constellation Brands (NYSE:STZ) last released its quarterly earnings results on Friday, January 5th. The company reported $2.00 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.87 by $0.13. The business had revenue of $1.98 billion during the quarter, compared to the consensus estimate of $1.87 billion. Constellation Brands had a return on equity of 22.04% and a net margin of 22.55%. During the same period in the previous year, the company posted $1.96 EPS. sell-side analysts predict that Constellation Brands will post 8.53 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, February 23rd. Investors of record on Friday, February 9th will be paid a $0.52 dividend. The ex-dividend date is Thursday, February 8th. This represents a $2.08 annualized dividend and a yield of 0.95%. Constellation Brands’s dividend payout ratio (DPR) is presently 11.30%.

A number of research analysts have weighed in on STZ shares. Royal Bank of Canada restated a “buy” rating and issued a $226.00 price target on shares of Constellation Brands in a research note on Sunday, November 12th. Zacks Investment Research upgraded Constellation Brands from a “hold” rating to a “buy” rating and set a $249.00 price target for the company in a research note on Monday, December 18th. Deutsche Bank started coverage on Constellation Brands in a research note on Wednesday, December 13th. They issued a “buy” rating and a $244.00 price target for the company. Wells Fargo & Co lifted their target price on Constellation Brands from $235.00 to $260.00 and gave the stock an “outperform” rating in a research note on Thursday, January 4th. Finally, SunTrust Banks reiterated a “buy” rating and set a $230.00 target price on shares of Constellation Brands in a research note on Friday, October 6th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of $229.00.

In related news, VP Thomas J. Mullin sold 18,227 shares of the business’s stock in a transaction on Wednesday, November 8th. The stock was sold at an average price of $217.01, for a total value of $3,955,441.27. Following the completion of the sale, the vice president now directly owns 72,924 shares in the company, valued at approximately $15,825,237.24. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 15.59% of the company’s stock.

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About Constellation Brands

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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