Wells Fargo & Company Cuts Constellation Brands (NYSE:STZ) Price Target to $140.00

Constellation Brands (NYSE:STZ) had its price target reduced by Wells Fargo & Company from $170.00 to $140.00 in a research note published on Monday,Benzinga reports. They currently have an overweight rating on the stock.

Several other equities research analysts have also recently commented on the company. Bank of America decreased their target price on Constellation Brands from $152.00 to $145.00 and set an “underperform” rating for the company in a research note on Thursday, July 2nd. UBS Group cut their price target on Constellation Brands from $168.00 to $145.00 and set a “buy” rating on the stock in a report on Wednesday, September 23rd. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Constellation Brands in a research report on Friday, July 31st. Piper Sandler reaffirmed a “neutral” rating and set a $160.00 price objective on shares of Constellation Brands in a research report on Wednesday, July 1st. Finally, Evercore set a $160.00 price objective on shares of Constellation Brands in a research note on Monday, September 21st. Eleven equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, Constellation Brands has a consensus rating of “Hold” and an average price target of $157.29.

Constellation Brands Stock Performance

Shares of STZ stock opened at $118.15 on Monday. The stock has a market capitalization of $20.18 billion, a PE ratio of 10.60, a PEG ratio of 2.30 and a beta of 0.44. The business’s 50 day simple moving average is $126.03 and its 200 day simple moving average is $138.41. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.91 and a quick ratio of 0.48. Constellation Brands has a one year low of $110.60 and a one year high of $168.60.

Constellation Brands (NYSE:STZ) last issued its quarterly earnings results on Tuesday, October 6th. The company reported $3.74 earnings per share for the quarter, topping analysts’ consensus estimates of $3.62 by $0.12. Constellation Brands had a return on equity of 25.17% and a net margin of 19.57%.The firm had revenue of $2.63 billion during the quarter, compared to the consensus estimate of $2.54 billion. During the same period last year, the business posted $3.63 EPS. The business’s revenue was up 6.1% compared to the same quarter last year. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, research analysts forecast that Constellation Brands will post 11.81 earnings per share for the current year.

Constellation Brands Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be issued a dividend of $1.03 per share. The ex-dividend date is Friday, October 30th. This represents a $4.12 annualized dividend and a dividend yield of 3.5%. Constellation Brands’s payout ratio is currently 39.31%.

Hedge Funds Weigh In On Constellation Brands

A number of institutional investors have recently modified their holdings of the company. Moody National Bank Trust Division lifted its stake in shares of Constellation Brands by 50.7% in the third quarter. Moody National Bank Trust Division now owns 7,120 shares of the company’s stock valued at $805,000 after buying an additional 2,394 shares in the last quarter. Ables Iannone Moore & Associates Inc. grew its holdings in shares of Constellation Brands by 105.2% during the third quarter. Ables Iannone Moore & Associates Inc. now owns 16,904 shares of the company’s stock valued at $1,911,000 after buying an additional 8,667 shares during the last quarter. Rosenberg Matthew Hamilton increased its position in shares of Constellation Brands by 14.1% during the third quarter. Rosenberg Matthew Hamilton now owns 1,101 shares of the company’s stock worth $124,000 after acquiring an additional 136 shares in the last quarter. Tompkins Financial Corp increased its position in shares of Constellation Brands by 2.6% during the third quarter. Tompkins Financial Corp now owns 3,745 shares of the company’s stock worth $423,000 after acquiring an additional 95 shares in the last quarter. Finally, Junto Capital Management LP acquired a new stake in shares of Constellation Brands in the 2nd quarter worth about $21,683,000. 77.34% of the stock is owned by institutional investors and hedge funds.

Constellation Brands News Roundup

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

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Adjusted EPS was $3.74 versus the $3.55 consensus, while revenue rose 6.1% year over year to $2.63 billion, helped by higher beer shipments and growth in wine and spirits. Constellation Brands tops second-quarter estimates
• Positive Sentiment: Wine and spirits showed strong momentum. Segment sales increased 17%, while beer sales rose 5%. Free cash flow also improved, supporting the company’s financial flexibility. Constellation Brands profit rises
• Positive Sentiment: SpikedAde acquisition expands its ready-to-drink portfolio. Constellation paid $75 million at closing, with potential additional consideration of up to $278 million, targeting the growing sports-drink-inspired RTD category. SpikedAde acquisition
• Positive Sentiment: The dividend remains supportive. STZ declared a quarterly dividend of $1.03 per share, equivalent to $4.12 annually and an indicated yield of roughly 3.5% based on the supplied background data.
• Neutral Sentiment: Management maintained its fiscal 2027 outlook. Adjusted EPS guidance of $11.20-$11.90 was broadly consistent with expectations, but did not provide a major upside revision.
• Neutral Sentiment: Broader market conditions were mixed. Rising Treasury yields and weaker overall market sentiment may have limited enthusiasm for the earnings beat, although STZ’s defensive consumer-staples characteristics provided some support.
• Negative Sentiment: Core-brand demand remains a concern. Modelo Especial depletions fell about 2% and Corona Extra declined about 5%, raising questions about whether the beer recovery is durable as consumers become more value-conscious. Constellation Brands beer demand
• Negative Sentiment: Analysts remain cautious. Goldman Sachs lowered its price target to $155, while Bank of America said the beer turnaround remains unproven. Morgan Stanley also warned of potential second-half margin pressure.

About Constellation Brands

Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.

The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation’s products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.