Constellation Brands (NYSE:STZ) Sets New 12-Month Low – Here’s Why

Shares of Constellation Brands Inc (NYSE:STZ) reached a new 52-week low on Friday . The company traded as low as $120.24 and last traded at $120.9220, with a volume of 349045 shares. The stock had previously closed at $122.45.

Analysts Set New Price Targets

STZ has been the subject of several analyst reports. Jefferies Financial Group lowered their price target on shares of Constellation Brands from $147.00 to $135.00 and set a “hold” rating for the company in a research report on Monday. Wells Fargo & Company cut their target price on shares of Constellation Brands from $185.00 to $170.00 and set an “overweight” rating on the stock in a report on Monday, June 29th. BMO Capital Markets reaffirmed an “outperform” rating and set a $190.00 price objective on shares of Constellation Brands in a research note on Thursday, July 2nd. Piper Sandler reissued a “neutral” rating and issued a $160.00 target price on shares of Constellation Brands in a research note on Wednesday, July 1st. Finally, Deutsche Bank Aktiengesellschaft lowered their price target on Constellation Brands from $150.00 to $136.00 and set a “hold” rating for the company in a report on Friday, September 11th. Twelve equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Constellation Brands presently has an average rating of “Hold” and a consensus price target of $165.14.

Constellation Brands Price Performance

The company has a quick ratio of 0.48, a current ratio of 0.91 and a debt-to-equity ratio of 1.06. The company’s fifty day moving average is $130.80 and its 200 day moving average is $141.93. The firm has a market cap of $20.49 billion, a price-to-earnings ratio of 11.45, a PEG ratio of 2.44 and a beta of 1.75.

Constellation Brands (NYSE:STZ) last issued its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 EPS for the quarter, missing the consensus estimate of $3.70 by ($0.27). Constellation Brands had a return on equity of 25.58% and a net margin of 18.87%.The business had revenue of $2.43 billion for the quarter, compared to the consensus estimate of $2.39 billion. During the same period last year, the firm earned $3.22 earnings per share. The company’s quarterly 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. On average, equities research analysts predict that Constellation Brands Inc will post 11.84 EPS for the current year.

Constellation Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 13th. Stockholders of record on Thursday, July 30th were paid a dividend of $1.03 per share. The ex-dividend date was Thursday, July 30th. This represents a $4.12 dividend on an annualized basis and a dividend yield of 3.4%. Constellation Brands’s dividend payout ratio is currently 39.31%.

Hedge Funds Weigh In On Constellation Brands

A number of institutional investors have recently bought and sold shares of the business. Ally Financial Inc. bought a new position in shares of Constellation Brands in the second quarter worth about $1,600,000. Diamond Hill Capital Management LLC Investment Advisor bought a new stake in shares of Constellation Brands during the 2nd quarter valued at approximately $31,582,000. Swedbank AB increased its position in Constellation Brands by 108.1% during the 4th quarter. Swedbank AB now owns 63,055 shares of the company’s stock worth $8,699,000 after purchasing an additional 32,757 shares in the last quarter. Thompson Siegel & Walmsley LLC increased its position in Constellation Brands by 12.0% during the 4th quarter. Thompson Siegel & Walmsley LLC now owns 362,808 shares of the company’s stock worth $50,053,000 after purchasing an additional 38,959 shares in the last quarter. Finally, OLD Republic International Corp lifted its stake in Constellation Brands by 76.7% in the 4th quarter. OLD Republic International Corp now owns 193,500 shares of the company’s stock valued at $26,695,000 after purchasing an additional 84,000 shares during the last quarter. Institutional investors and hedge funds own 77.34% of the company’s stock.

About Constellation Brands

Constellation Brands, Inc (NYSE: STZ) is a beverage alcohol company that produces, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Corona Extra, Modelo Especial, Modelo Negra, Pacifico and Victoria, along with wine brands including Robert Mondavi, The Prisoner, Kim Crawford and Meiomi. Its spirits portfolio includes brands such as Casa Noble tequila and High West whiskey.

The company’s beer business is focused primarily on the United States, where Constellation markets and sells Mexican beer brands brewed by its production operations in Mexico.