Freedom Capital Downgrades Constellation Brands (NYSE:STZ) to Hold

Constellation Brands (NYSE:STZ) was downgraded by research analysts at Freedom Capital from a “strong-buy” rating to a “hold” rating in a report released on Wednesday,Zacks.com reports.

Other analysts have also issued reports about the stock. JPMorgan Chase & Co. cut their target price on shares of Constellation Brands from $169.00 to $165.00 and set a “neutral” rating for the company in a research note on Thursday. Barclays dropped their price target on Constellation Brands from $170.00 to $139.00 and set an “equal weight” rating on the stock in a report on Thursday. Sanford C. Bernstein reissued an “outperform” rating on shares of Constellation Brands in a research note on Wednesday. Needham & Company LLC restated a “buy” rating and issued a $185.00 target price on shares of Constellation Brands in a report on Thursday. Finally, BMO Capital Markets reaffirmed an “outperform” rating and set a $190.00 target price on shares of Constellation Brands in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $167.89.

Constellation Brands Price Performance

Shares of Constellation Brands stock opened at $137.36 on Wednesday. The company has a current ratio of 0.91, a quick ratio of 0.55 and a debt-to-equity ratio of 1.06. The company’s 50-day moving average price is $145.07 and its two-hundred day moving average price is $150.09. Constellation Brands has a 52 week low of $126.45 and a 52 week high of $178.13. The stock has a market cap of $23.65 billion, a PE ratio of 13.11, a price-to-earnings-growth ratio of 4.08 and a beta of 0.39.

Constellation Brands (NYSE:STZ) last issued its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share for the quarter, missing analysts’ consensus estimates of $3.72 by ($0.29). Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The business had revenue of $2.43 billion during the quarter, compared to analyst estimates of $2.39 billion. During the same period in the previous year, the company posted $3.22 earnings per share. Constellation Brands’s revenue was down 3.3% compared to the same quarter last year. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, sell-side analysts anticipate that Constellation Brands will post 11.64 EPS for the current fiscal year.

Insiders Place Their Bets

In other Constellation Brands news, EVP James O. Bourdeau sold 4,407 shares of Constellation Brands stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total transaction of $631,258.68. Following the transaction, the executive vice president owned 9,109 shares of the company’s stock, valued at $1,304,773.16. The trade was a 32.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 12.20% of the stock is currently owned by company insiders.

Institutional Trading of Constellation Brands

A number of hedge funds have recently made changes to their positions in the stock. Capital International Investors lifted its holdings in shares of Constellation Brands by 48.5% during the 4th quarter. Capital International Investors now owns 6,442,600 shares of the company’s stock valued at $888,930,000 after buying an additional 2,105,546 shares during the last quarter. Norges Bank acquired a new stake in Constellation Brands in the fourth quarter valued at approximately $267,798,000. Ameriprise Financial Inc. grew its position in Constellation Brands by 650.6% in the second quarter. Ameriprise Financial Inc. now owns 1,769,741 shares of the company’s stock worth $287,889,000 after acquiring an additional 1,533,961 shares in the last quarter. Wellington Management Group LLP increased its stake in shares of Constellation Brands by 14.0% during the 4th quarter. Wellington Management Group LLP now owns 6,018,653 shares of the company’s stock worth $830,333,000 after purchasing an additional 739,393 shares during the last quarter. Finally, Pzena Investment Management LLC acquired a new position in shares of Constellation Brands during the 4th quarter worth $81,381,000. 77.34% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Constellation Brands

Here are the key news stories impacting Constellation Brands this week:

• Positive Sentiment: Constellation Brands beat fiscal Q1 earnings expectations, topped revenue estimates, and reaffirmed FY27 guidance, reinforcing confidence in its beer portfolio and profitability. Reuters: Constellation Brands beats quarterly profit estimates on beer demand
• Positive Sentiment: Analysts at BMO Capital Markets, RBC, and Needham reaffirmed bullish ratings and maintained elevated price targets, suggesting some believe the post-earnings pullback leaves room for upside. Benzinga analyst updates
• Neutral Sentiment: Constellation Brands also declared a $1.03 quarterly dividend, which supports total return but is not a major near-term catalyst for the stock. Seeking Alpha: Constellation Brands declares $1.03 dividend
• Negative Sentiment: Multiple firms lowered price targets after Q1, citing softer volume trends, consumer weakness, inflation, and gas-price pressure that could weigh on demand. Benzinga: Constellation Brands analysts slash forecasts after Q1 results
• Negative Sentiment: Morgan Stanley highlighted long-term risk tied to declining alcohol consumption, adding to concerns about the company’s long-run growth profile. Yahoo Finance: Constellation faces long-term risks related to alcohol consumption

About Constellation Brands

Constellation Brands, Inc is a leading producer and marketer of beer, wine and spirits, with operations spanning production, importation, marketing and distribution. The company’s beverage portfolio includes a range of premium and mainstream wines and spirits alongside major imported beer brands; in the U.S. market Constellation is widely known for its role in bringing Mexican imports such as Corona and Modelo to American consumers. Constellation supplies retail, on‑premise and foodservice channels and supports its brands with national sales and marketing platforms and supply‑chain capabilities.

The company traces its roots to the Canandaigua Wine Company, founded by Marvin Sands in 1945, and evolved through organic growth and acquisition into a diversified beverage company.