Constellation Brands (STZ) Receives Buy Rating from Jefferies Financial Group

Jefferies Financial Group restated their buy rating on shares of Constellation Brands (NYSE:STZ) in a research note published on Friday. They currently have a $289.00 target price on the stock.

“STZ remains our top large cap growth idea following our meeting/site visit w/ cannabis industry leader, Canopy Growth (< 40% owned by STZ).",” Jefferies Financial Group’s analyst wrote.

A number of other equities analysts have also weighed in on the stock. Zacks Investment Research lowered shares of Constellation Brands from a buy rating to a hold rating in a research report on Friday. ValuEngine lowered shares of Constellation Brands from a buy rating to a hold rating in a research report on Tuesday, October 23rd. Macquarie set a $245.00 price objective on shares of Constellation Brands and gave the company a buy rating in a research report on Friday, October 5th. Bank of America cut their price objective on shares of Constellation Brands from $250.00 to $230.00 and set a buy rating for the company in a research report on Thursday, August 16th. Finally, Morgan Stanley cut their price objective on shares of Constellation Brands from $258.00 to $251.00 and set a buy rating for the company in a research report on Thursday, September 27th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock has an average rating of Buy and a consensus price target of $244.27.

STZ stock traded down $2.11 during trading on Friday, reaching $188.61. 1,405,308 shares of the company were exchanged, compared to its average volume of 1,802,318. The company has a market cap of $36.13 billion, a P/E ratio of 21.63, a P/E/G ratio of 1.85 and a beta of 0.05. Constellation Brands has a 52-week low of $187.34 and a 52-week high of $236.62. The company has a current ratio of 1.66, a quick ratio of 0.76 and a debt-to-equity ratio of 0.80.

Constellation Brands (NYSE:STZ) last released its quarterly earnings data on Thursday, October 4th. The company reported $2.87 EPS for the quarter, topping analysts’ consensus estimates of $2.60 by $0.27. Constellation Brands had a net margin of 38.18% and a return on equity of 18.63%. The firm had revenue of $2.30 billion for the quarter, compared to the consensus estimate of $2.25 billion. During the same quarter in the previous year, the firm earned $2.47 earnings per share. The firm’s revenue was up 10.1% on a year-over-year basis. On average, equities research analysts expect that Constellation Brands will post 9.41 earnings per share for the current year.

The business also recently declared a quarterly dividend, which was paid on Tuesday, November 20th. Investors of record on Tuesday, November 6th were given a dividend of $0.74 per share. This represents a $2.96 annualized dividend and a yield of 1.57%. The ex-dividend date of this dividend was Monday, November 5th. Constellation Brands’s dividend payout ratio (DPR) is 33.94%.

In related news, CEO Robert Sands sold 136,547 shares of the company’s stock in a transaction that occurred on Friday, October 19th. The shares were sold at an average price of $223.62, for a total transaction of $30,534,640.14. Following the completion of the transaction, the chief executive officer now owns 737,607 shares of the company’s stock, valued at $164,943,677.34. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Thomas Michael Kane sold 4,419 shares of the company’s stock in a transaction that occurred on Friday, October 19th. The stock was sold at an average price of $223.83, for a total transaction of $989,104.77. Following the transaction, the vice president now directly owns 8,499 shares of the company’s stock, valued at approximately $1,902,331.17. The disclosure for this sale can be found here. Insiders have sold 578,723 shares of company stock valued at $129,438,449 in the last ninety days. 15.80% of the stock is currently owned by company insiders.

Hedge funds have recently modified their holdings of the stock. BlackRock Inc. increased its position in shares of Constellation Brands by 0.6% in the third quarter. BlackRock Inc. now owns 12,057,795 shares of the company’s stock worth $2,599,903,000 after acquiring an additional 70,095 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Constellation Brands by 0.3% in the third quarter. Vanguard Group Inc. now owns 12,013,148 shares of the company’s stock worth $2,590,276,000 after acquiring an additional 30,782 shares in the last quarter. FMR LLC increased its position in shares of Constellation Brands by 6.0% in the second quarter. FMR LLC now owns 5,969,243 shares of the company’s stock worth $1,306,489,000 after acquiring an additional 337,338 shares in the last quarter. Capital World Investors increased its position in shares of Constellation Brands by 3.4% in the third quarter. Capital World Investors now owns 4,054,750 shares of the company’s stock worth $874,285,000 after acquiring an additional 133,500 shares in the last quarter. Finally, Third Point LLC increased its position in shares of Constellation Brands by 20.0% in the third quarter. Third Point LLC now owns 2,400,000 shares of the company’s stock worth $517,488,000 after acquiring an additional 400,000 shares in the last quarter. 72.83% of the stock is owned by hedge funds and other institutional investors.

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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Analyst Recommendations for Constellation Brands (NYSE:STZ)

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