Constellation Brands (NYSE:STZ) Trading 5.5% Higher Following Strong Earnings

Constellation Brands Inc (NYSE:STZ) traded up 5.5% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $159.74 and last traded at $158.5560. 967,718 shares were traded during mid-day trading, a decline of 59% from the average session volume of 2,369,001 shares. The stock had previously closed at $150.26.

The company reported $1.90 EPS for the quarter, beating the consensus estimate of $1.74 by $0.16. The firm had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.84 billion. Constellation Brands had a net margin of 11.08% and a return on equity of 29.15%. The company’s quarterly revenue was down 11.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.63 earnings per share.

Constellation Brands Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, May 14th. Investors of record on Wednesday, April 29th will be paid a $1.03 dividend. The ex-dividend date of this dividend is Wednesday, April 29th. This is an increase from Constellation Brands’s previous quarterly dividend of $1.02. This represents a $4.12 dividend on an annualized basis and a yield of 2.6%. Constellation Brands’s payout ratio is currently 64.35%.

Key Stories Impacting Constellation Brands

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

• Positive Sentiment: Q4 results beat Wall Street on both EPS and revenue, giving evidence the core business can still generate cash despite category softness. Constellation Brands (STZ) Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Board raised the quarterly dividend to $1.03 (1.0% increase), supporting income investors and signaling confidence in cash flow. Constellation Brands Reports Fiscal 2026 Results, Raises Dividend
• Positive Sentiment: Some analysts remain constructive — Wells Fargo raised its price target and Evercore ISI maintained bullish views — which can limit downside. Benzinga: Wells Fargo raises PT
• Neutral Sentiment: Beer sales showed signs of stabilization (Mexican lager brands held up), which offsets weakness in other categories but may not be enough to fully offset wine/spirits declines. Reuters: Smaller-than-expected sales drop
• Neutral Sentiment: Management announced leadership transition details and will host a conference call to discuss results and outlook — investors should listen for detail on demand trends and cost plans. GlobeNewswire: Fiscal results & conference call
• Negative Sentiment: Fiscal 2027 EPS guidance ($11.20–$11.90) came in below consensus (~$12.44), the primary driver of the stock weakness as it reduces near‑term earnings visibility. Blockonomi: FY27 outlook disappoints
• Negative Sentiment: Management withdrew FY2028 guidance and cited an uncertain macro/consumer environment, increasing longer‑term forecast risk. CNBC: Withdraws 2028 guidance
• Negative Sentiment: Overall revenue declined year‑over‑year and wine & spirits softness remains a drag; slower category demand is the core operational risk to watch. Yahoo Finance: Revenue slides as alcohol demand softens

Analysts Set New Price Targets

A number of research firms recently issued reports on STZ. Barclays increased their price target on shares of Constellation Brands from $148.00 to $151.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 2nd. Sanford C. Bernstein increased their price target on shares of Constellation Brands from $195.00 to $197.00 and gave the stock an “outperform” rating in a research note on Friday, January 9th. JPMorgan Chase & Co. increased their price target on shares of Constellation Brands from $155.00 to $163.00 and gave the stock a “neutral” rating in a research note on Wednesday, April 1st. UBS Group increased their price target on shares of Constellation Brands from $168.00 to $176.00 and gave the stock a “buy” rating in a research note on Wednesday, April 1st. Finally, Royal Bank Of Canada reissued an “outperform” rating on shares of Constellation Brands in a research note on Wednesday, March 18th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $179.18.

Institutional Investors Weigh In On Constellation Brands

Hedge funds and other institutional investors have recently bought and sold shares of the business. Root Financial Partners LLC purchased a new stake in Constellation Brands in the third quarter worth about $26,000. MV Capital Management Inc. purchased a new stake in Constellation Brands in the fourth quarter worth about $26,000. Stance Capital LLC purchased a new stake in Constellation Brands in the third quarter worth about $26,000. Strive Financial Group LLC purchased a new stake in Constellation Brands in the fourth quarter worth about $27,000. Finally, GoalVest Advisory LLC purchased a new stake in Constellation Brands in the fourth quarter worth about $28,000. Hedge funds and other institutional investors own 77.34% of the company’s stock.

Constellation Brands Trading Up 5.6%

The firm has a market cap of $27.50 billion, a PE ratio of 25.01, a PEG ratio of 0.42 and a beta of 0.44. The company has a quick ratio of 0.70, a current ratio of 1.34 and a debt-to-equity ratio of 1.29. The stock’s fifty day simple moving average is $154.39 and its two-hundred day simple moving average is $145.25.

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.