Constellation Brands (STZ) to Repurchase $3.00 billion in Outstanding Shares

Constellation Brands (NYSE:STZ) announced that its board has authorized a stock buyback plan, which authorizes the company to buyback $3.00 billion in shares on Friday, January 5th, EventVestor reports. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

Shares of Constellation Brands (STZ) traded down $5.91 during trading hours on Friday, reaching $219.88. 9,907,414 shares of the company were exchanged, compared to its average volume of 1,370,000. The company has a market capitalization of $43,000.00, a P/E ratio of 28.12, a price-to-earnings-growth ratio of 1.45 and a beta of 0.08. The company has a quick ratio of 0.69, a current ratio of 1.61 and a debt-to-equity ratio of 1.01. Constellation Brands has a 52 week low of $146.40 and a 52 week high of $229.50.

Constellation Brands (NYSE:STZ) last issued its quarterly earnings results on Friday, January 5th. The company reported $2.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.87 by $0.13. The business had revenue of $1.98 billion for the quarter, compared to the consensus estimate of $1.87 billion. Constellation Brands had a return on equity of 22.81% and a net margin of 21.47%. During the same period in the prior year, the firm posted $1.96 earnings per share. equities analysts anticipate that Constellation Brands will post 8.43 earnings per share for the current fiscal year.

STZ has been the subject of several research analyst reports. Royal Bank of Canada reaffirmed a “buy” rating and set a $226.00 price target on shares of Constellation Brands in a research note on Sunday, November 12th. Pivotal Research lifted their price target on shares of Constellation Brands from $250.00 to $265.00 and gave the company a “buy” rating in a research note on Thursday, October 5th. Stifel Nicolaus boosted their price objective on shares of Constellation Brands from $216.00 to $235.00 and gave the stock a “buy” rating in a research note on Friday, October 6th. SunTrust Banks reissued a “buy” rating and issued a $230.00 price objective on shares of Constellation Brands in a research note on Friday, October 6th. Finally, Deutsche Bank assumed coverage on shares of Constellation Brands in a research note on Wednesday, December 13th. They issued a “buy” rating and a $244.00 price objective for the company. One analyst has rated the stock with a sell rating, six have given a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the company. The stock currently has an average rating of “Buy” and a consensus target price of $225.55.

In other news, insider William A. Newlands sold 2,935 shares of the company’s stock in a transaction on Monday, October 9th. The stock was sold at an average price of $210.10, for a total transaction of $616,643.50. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, VP Thomas J. Mullin sold 50,000 shares of the company’s stock in a transaction on Monday, October 16th. The stock was sold at an average price of $209.45, for a total value of $10,472,500.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 73,662 shares of company stock worth $15,564,585. Insiders own 15.59% of the company’s stock.

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About Constellation Brands

Constellation Brands, Inc is an international beverage alcohol company. The Company is a producer and marketer of beer, wine and spirits with operations in the United States, Canada, Mexico, New Zealand and Italy. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. It is a multi-category supplier (beer, wine and spirits) of beverage alcohol in the United States.

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