Investors Buy Constellation Brands (STZ) on Weakness After Analyst Downgrade

Traders purchased shares of Constellation Brands, Inc. (NYSE:STZ) on weakness during trading on Friday after Morgan Stanley lowered their price target on the stock from $246.00 to $207.00. $210.12 million flowed into the stock on the tick-up and $117.94 million flowed out of the stock on the tick-down, for a money net flow of $92.18 million into the stock. Of all companies tracked, Constellation Brands had the 10th highest net in-flow for the day. Constellation Brands traded down ($0.72) for the day and closed at $159.21

A number of other analysts have also recently issued reports on STZ. Zacks Investment Research cut Constellation Brands from a “buy” rating to a “hold” rating in a research report on Friday, December 7th. SunTrust Banks restated a “hold” rating on shares of Constellation Brands in a research report on Thursday. ValuEngine cut Constellation Brands from a “hold” rating to a “sell” rating in a research report on Thursday. Guggenheim upgraded Constellation Brands from a “sell” rating to a “neutral” rating in a research report on Wednesday. Finally, Citigroup lowered their price target on Constellation Brands to $168.00 and set a “neutral” rating on the stock in a research report on Thursday. One research analyst has rated the stock with a sell rating, eight have given a hold rating, seventeen have given a buy rating and two have assigned a strong buy rating to the stock. The company currently has an average rating of “Buy” and a consensus target price of $228.09.

In other Constellation Brands news, VP Thomas Michael Kane sold 4,419 shares of the business’s stock in a transaction on Friday, October 19th. The stock was sold at an average price of $223.83, for a total value of $989,104.77. Following the transaction, the vice president now owns 8,499 shares of the company’s stock, valued at $1,902,331.17. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Chairman Richard Sands sold 148,773 shares of the business’s stock in a transaction on Monday, October 22nd. The stock was sold at an average price of $223.69, for a total value of $33,279,032.37. Following the completion of the transaction, the chairman now directly owns 346,525 shares in the company, valued at approximately $77,514,177.25. The disclosure for this sale can be found here. In the last three months, insiders sold 578,723 shares of company stock worth $129,438,449. Insiders own 15.80% of the company’s stock.

A number of institutional investors have recently bought and sold shares of STZ. Carroll Financial Associates Inc. boosted its stake in Constellation Brands by 132.0% in the fourth 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 acquired a new position in shares of Constellation Brands during the second quarter valued at $114,000. TLP Group LLC acquired a new position in shares of Constellation Brands during the third quarter valued at $136,000. Truvestments Capital LLC acquired a new position in shares of Constellation Brands during the third quarter valued at $137,000. Finally, Benjamin F. Edwards & Company Inc. lifted its stake in shares of Constellation Brands by 49.3% during the third quarter. Benjamin F. Edwards & Company Inc. now owns 787 shares of the company’s stock valued at $170,000 after acquiring an additional 260 shares during the period. 72.56% of the stock is currently owned by institutional investors.

The company has a quick ratio of 0.76, a current ratio of 1.66 and a debt-to-equity ratio of 0.80. The company has a market cap of $28.60 billion, a PE ratio of 18.26, a price-to-earnings-growth ratio of 1.57 and a beta of 0.38.

Constellation Brands (NYSE:STZ) last issued its quarterly earnings results on Wednesday, January 9th. The company reported $2.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.04 by $0.33. Constellation Brands had a return on equity of 18.27% and a net margin of 35.27%. The business had revenue of $1.97 billion for the quarter, compared to analyst estimates of $1.91 billion. During the same quarter in the prior year, the firm posted $2.00 earnings per share. The firm’s revenue for the quarter was up 9.5% compared to the same quarter last year. Equities research analysts predict that Constellation Brands, Inc. will post 9.25 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, February 26th. Stockholders of record on Tuesday, February 12th will be paid a dividend of $0.74 per share. This represents a $2.96 annualized dividend and a dividend yield of 1.86%. The ex-dividend date is Monday, February 11th. Constellation Brands’s dividend payout ratio (DPR) is presently 10.67%.

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About Constellation Brands (NYSE:STZ)

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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