Investors Buy Shares of Constellation Brands (STZ) on Weakness

Traders purchased shares of Constellation Brands (NYSE:STZ) on weakness during trading on Friday. $143.30 million flowed into the stock on the tick-up and $46.67 million flowed out of the stock on the tick-down, for a money net flow of $96.63 million into the stock. Of all companies tracked, Constellation Brands had the 9th highest net in-flow for the day. Constellation Brands traded down ($1.85) for the day and closed at $220.30

STZ has been the subject of a number of recent analyst reports. OTR Global upgraded shares of Constellation Brands to a “positive” rating in a report on Friday, March 23rd. Morgan Stanley boosted their price objective on shares of Constellation Brands from $250.00 to $262.00 and gave the stock an “overweight” rating in a report on Tuesday, April 3rd. Zacks Investment Research upgraded shares of Constellation Brands from a “sell” rating to a “hold” rating in a report on Monday, March 26th. BMO Capital Markets initiated coverage on shares of Constellation Brands in a report on Monday, February 5th. They issued an “outperform” rating and a $275.00 price objective for the company. Finally, Argus boosted their price objective on shares of Constellation Brands to $260.00 and gave the stock a “buy” rating in a report on Tuesday, April 3rd. Seven analysts have rated the stock with a hold rating, sixteen have given a buy rating and two have given a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus target price of $245.77.

The company has a debt-to-equity ratio of 1.17, a current ratio of 1.79 and a quick ratio of 0.71. The company has a market capitalization of $42.39 billion, a P/E ratio of 25.26, a price-to-earnings-growth ratio of 1.25 and a beta of 0.09.

Constellation Brands (NYSE:STZ) last posted its quarterly earnings data on Thursday, March 29th. The company reported $1.90 EPS for the quarter, topping the consensus estimate of $1.74 by $0.16. The firm had revenue of $1.77 billion during the quarter, compared to analyst estimates of $1.76 billion. Constellation Brands had a return on equity of 22.28% and a net margin of 27.85%. Constellation Brands’s revenue was up 8.5% on a year-over-year basis. During the same period in the prior year, the business posted $1.48 EPS. analysts forecast that Constellation Brands will post 9.68 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 24th. Stockholders of record on Thursday, May 10th will be paid a $0.74 dividend. This represents a $2.96 annualized dividend and a dividend yield of 1.34%. This is a positive change from Constellation Brands’s previous quarterly dividend of $0.52. The ex-dividend date of this dividend is Wednesday, May 9th. Constellation Brands’s dividend payout ratio is 10.67%.

In other news, Director Barry A. Fromberg sold 3,000 shares of the company’s stock in a transaction on Monday, April 2nd. The stock was sold at an average price of $229.22, for a total value of $687,660.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP David Eric Klein sold 17,900 shares of the company’s stock in a transaction on Monday, April 2nd. The stock was sold at an average price of $228.43, for a total value of $4,088,897.00. The disclosure for this sale can be found here. Insiders sold a total of 35,269 shares of company stock valued at $8,048,757 over the last 90 days. 15.59% of the stock is currently owned by company insiders.

Several large investors have recently bought and sold shares of the company. Rational Advisors LLC boosted its holdings in Constellation Brands by 24.7% in the 1st quarter. Rational Advisors LLC now owns 16,514 shares of the company’s stock worth $3,764,000 after buying an additional 3,267 shares during the period. Parsons Capital Management Inc. RI boosted its holdings in Constellation Brands by 10.8% in the 1st quarter. Parsons Capital Management Inc. RI now owns 3,645 shares of the company’s stock worth $831,000 after buying an additional 355 shares during the period. Wesbanco Bank Inc. boosted its holdings in Constellation Brands by 106.9% in the 1st quarter. Wesbanco Bank Inc. now owns 69,759 shares of the company’s stock worth $15,899,000 after buying an additional 36,041 shares during the period. CIBC World Markets Inc. boosted its holdings in Constellation Brands by 236.9% in the 1st quarter. CIBC World Markets Inc. now owns 64,083 shares of the company’s stock worth $14,606,000 after buying an additional 45,061 shares during the period. Finally, Moors & Cabot Inc. boosted its holdings in Constellation Brands by 165.7% in the 1st quarter. Moors & Cabot Inc. now owns 6,894 shares of the company’s stock worth $1,571,000 after buying an additional 4,299 shares during the period. Hedge funds and other institutional investors own 76.26% of the company’s stock.

About Constellation Brands

Constellation Brands, Inc, together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. It offers beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, and Pacifico brands; wine under the Black Box, Clos du Bois, Estancia, Franciscan Estate, Inniskillin, Kim Crawford, Mark West, Meiomi, Mount Veeder, Nobilo, Robert Mondavi, Ruffino, Saved, Simi, The Dreaming Tree, The Prisoner, Charles Smith, and Wild Horse brands; and sprits under the SVEDKA vodka, Black Velvet Canadian whisky, Casa Noble tequila, High West craft whisky brands.

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