Constellation Brands (NYSE:STZ) Reaches New 1-Year Low – Should You Sell?

Constellation Brands Inc (NYSE:STZ) shares hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $123.48 and last traded at $125.0090, with a volume of 1200427 shares changing hands. The stock had previously closed at $128.18.

Wall Street Analyst Weigh In

STZ has been the subject of several recent analyst reports. Morgan Stanley reduced their price target on Constellation Brands from $183.00 to $158.00 and set an “equal weight” rating for the company in a report on Thursday, July 2nd. Sanford C. Bernstein restated an “outperform” rating on shares of Constellation Brands in a research report on Wednesday, July 1st. TD Cowen reiterated a “buy” rating and issued a $174.00 price objective on shares of Constellation Brands in a research report on Wednesday, July 1st. UBS Group dropped their target price on shares of Constellation Brands from $186.00 to $175.00 and set a “buy” rating for the company in a report on Wednesday, June 17th. Finally, Roth Capital reaffirmed a “buy” rating and issued a $209.00 price target on shares of Constellation Brands in a report on Thursday, July 2nd. Eleven research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $170.00.

Constellation Brands Stock Performance

The stock has a market cap of $21.16 billion, a PE ratio of 11.85, a P/E/G ratio of 2.42 and a beta of 0.41. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.91 and a quick ratio of 0.48. The stock has a 50-day simple moving average of $132.64 and a 200-day simple moving average of $143.85.

Constellation Brands (NYSE:STZ) last posted its earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.70 by ($0.27). The company had revenue of $2.43 billion during the quarter, compared to analyst estimates of $2.39 billion. Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. Constellation Brands’s quarterly revenue was down 3.3% compared to the same quarter last year. During the same quarter last year, the business posted $3.22 EPS. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Equities analysts predict that Constellation Brands Inc will post 11.84 earnings per share for the current fiscal year.

Constellation Brands Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 13th. Shareholders of record on Thursday, July 30th were issued a dividend of $1.03 per share. This represents a $4.12 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date of this dividend was Thursday, July 30th. Constellation Brands’s dividend payout ratio (DPR) is currently 39.31%.

Hedge Funds Weigh In On Constellation Brands

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. MV Capital Management Inc. acquired a new stake in shares of Constellation Brands in the 4th quarter worth approximately $26,000. Stance Capital LLC acquired a new stake in Constellation Brands in the third quarter worth approximately $26,000. Strive Financial Group LLC bought a new position in Constellation Brands during the 4th quarter valued at $27,000. Cedar Mountain Advisors LLC bought a new stake in shares of Constellation Brands in the 1st quarter worth $33,000. Finally, Root Financial Partners LLC lifted its holdings in shares of Constellation Brands by 231.3% in the first quarter. Root Financial Partners LLC now owns 222 shares of the company’s stock valued at $33,000 after buying an additional 155 shares during the period. 77.34% of the stock is owned by institutional investors.

Constellation Brands Company Profile

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.