Pivotal Research reiterated their buy rating on shares of Constellation Brands (NYSE:STZ) in a research note released on Wednesday, Marketbeat reports. They currently have a $265.00 price target on the stock, down from their prior price target of $300.00.
“We are convinced that CGC is the best way to play the rapidly growing cannabis market and investors should begin to fully reflect that value and CGC’s prospects, rather than penalizing STZ for the cash carrying costs of the investment, in our view. This makes STZ a truly compelling BUY. VALUATION: Constellation trades at 15.8x our estimate of EV/EBITDA, no doubt as “cheap” as STZ has been in the past five years. If one takes the POV that CGC could double to a $20 billion market cap in 18-24 months (our personal view) then Constellation will have a $10 billion investment as an add-back to EV and thus on the basis of core EBITDA of around $3,000, could trade at 20x that or over $300 based on FY20 EBITDA and the equity value of CGC. We’ve haircut that today but still view it as a more likely than not scenario.”,” the firm’s analyst commented.
Several other brokerages have also recently weighed in on STZ. Jefferies Financial Group reiterated a buy rating and issued a $289.00 price target on shares of Constellation Brands in a research report on Wednesday, October 17th. Morgan Stanley set a $259.00 price target on Constellation Brands and gave the company a buy rating in a research report on Tuesday, October 16th. Citigroup lifted their price target on Constellation Brands from $235.00 to $240.00 and gave the company a hold rating in a research report on Wednesday, October 10th. Zacks Investment Research upgraded Constellation Brands from a strong sell rating to a hold rating in a research report on Tuesday, October 16th. Finally, ValuEngine upgraded Constellation Brands from a hold rating to a buy rating in a research report on Friday, October 12th. One research analyst has rated the stock with a sell rating, eight have given a hold rating, seventeen have issued a buy rating and two have issued a strong buy rating to the stock. The company has an average rating of Buy and a consensus target price of $228.09.
Shares of NYSE STZ opened at $159.21 on Wednesday. The firm has a market capitalization of $28.60 billion, a PE ratio of 18.26, a P/E/G ratio of 1.57 and a beta of 0.38. Constellation Brands has a fifty-two week low of $150.37 and a fifty-two week high of $236.62. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.66 and a quick ratio of 0.76.
Constellation Brands (NYSE:STZ) last announced its quarterly earnings results on Wednesday, January 9th. The company reported $2.37 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.04 by $0.33. The company had revenue of $1.97 billion during the quarter, compared to analysts’ expectations of $1.91 billion. Constellation Brands had a return on equity of 18.27% and a net margin of 35.27%. The firm’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period in the previous year, the business earned $2.00 earnings per share. As a group, equities research analysts predict that Constellation Brands will post 9.25 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 26th. Investors of record on Tuesday, February 12th will be given a dividend of $0.74 per share. This represents a $2.96 annualized dividend and a yield of 1.86%. The ex-dividend date of this dividend is Monday, February 11th. Constellation Brands’s payout ratio is 10.67%.
In other news, CEO Robert Sands sold 136,547 shares of the company’s stock in a transaction dated Friday, October 19th. The stock was sold at an average price of $223.62, for a total value of $30,534,640.14. Following the completion of the transaction, the chief executive officer now directly owns 737,607 shares in the company, valued at approximately $164,943,677.34. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Thomas Michael Kane sold 4,419 shares of the company’s stock in a transaction dated Friday, October 19th. The stock was sold at an average price of $223.83, for a total value of $989,104.77. Following the completion of the transaction, the vice president now owns 8,499 shares of the company’s stock, valued at $1,902,331.17. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 578,723 shares of company stock valued at $129,438,449. 15.80% of the stock is owned by company insiders.
Institutional investors and hedge funds have recently bought and sold shares of the company. Carroll Financial Associates Inc. boosted its holdings in shares of Constellation Brands by 132.0% in the 4th quarter. Carroll Financial Associates Inc. now owns 283 shares of the company’s stock worth $48,000 after purchasing an additional 161 shares in the last quarter. Atlantic Trust LLC purchased a new position in shares of Constellation Brands in the 2nd quarter worth about $114,000. TLP Group LLC purchased a new position in shares of Constellation Brands in the 3rd quarter worth about $136,000. Truvestments Capital LLC purchased a new position in shares of Constellation Brands in the 3rd quarter worth about $137,000. Finally, Benjamin F. Edwards & Company Inc. boosted its holdings in shares of Constellation Brands by 49.3% in the 3rd quarter. Benjamin F. Edwards & Company Inc. now owns 787 shares of the company’s stock worth $170,000 after purchasing an additional 260 shares in the last quarter. Hedge funds and other institutional investors own 72.56% of the company’s stock.
Constellation Brands Company Profile
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 provides beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands.
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