Weekly Investment Analysts’ Ratings Updates for Constellation Brands, Inc. Class A (STZ)

Constellation Brands, Inc. Class A (NYSE: STZ) recently received a number of ratings updates from brokerages and research firms:

  • 9/13/2018 – Constellation Brands, Inc. Class A is now covered by analysts at Guggenheim. They set a “sell” rating on the stock.
  • 9/10/2018 – Constellation Brands, Inc. Class A was downgraded by analysts at SunTrust Banks, Inc. from a “buy” rating to a “hold” rating. They now have a $220.00 price target on the stock, down previously from $260.00.
  • 9/7/2018 – Constellation Brands, Inc. Class A is now covered by analysts at Jefferies Financial Group Inc. They set a “buy” rating and a $283.00 price target on the stock.
  • 9/2/2018 – Constellation Brands, Inc. Class A was given a new $258.00 price target on by analysts at Morgan Stanley. They now have a “buy” rating on the stock.
  • 8/22/2018 – Constellation Brands, Inc. Class A had its price target raised by analysts at Royal Bank of Canada to $300.00. They now have an “outperform” rating on the stock.
  • 8/22/2018 – Constellation Brands, Inc. Class A was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Constellation Brands outpaced the industry in the past year driven by a robust surprise history. Though the company missed earnings estimates in first-quarter fiscal 2019 due to higher marketing expenses and transportation costs, it delivered earnings beat in the preceding 14 quarters. Further, the company is witnessing solid top-line trends driven by strong depletions in the beer business. Notably, the fiscal first quarter results reflected the 9th sales beat in last 11 quarters. Consequently, management raised its GAAP earnings view for fiscal 2019. Also, the company is benefiting from consistent focus on brand-building efforts and product innovations. However, the market remains concerned about the outcome of the company’s recent $5 billion investment to expand stake in Canada’s Canopy Growth. Moreover, stiff competition, higher debt position and taxes remain concerns.”
  • 8/20/2018 – Constellation Brands, Inc. Class A was downgraded by analysts at UBS Group AG to a “neutral” rating.
  • 8/20/2018 – Constellation Brands, Inc. Class A was downgraded by analysts at Susquehanna Bancshares Inc from a “neutral” rating to a “negative” rating. They now have a $169.00 price target on the stock, down previously from $199.00.
  • 8/16/2018 – Constellation Brands, Inc. Class A had its price target lowered by analysts at Deutsche Bank AG from $234.00 to $226.00. They now have a “buy” rating on the stock.
  • 8/16/2018 – Constellation Brands, Inc. Class A had its price target lowered by analysts at Bank of America Corp from $250.00 to $230.00. They now have a “buy” rating on the stock.
  • 8/16/2018 – Constellation Brands, Inc. Class A had its price target lowered by analysts at Cann from $234.00 to $226.00. They now have a “buy” rating on the stock.
  • 8/15/2018 – Constellation Brands, Inc. Class A had its “buy” rating reaffirmed by analysts at Pivotal Research. They now have a $265.00 price target on the stock. They wrote, “We estimate interest expense will rise about $40 million per quarter and the company will not be buying back shares or doing other acquisitions until the debt returns to 3.5x EBITDA. We estimate pro forma Debt/ 2019 EBITDA to be 4.7x after this deal. Thus, in the short-term, this is quite a big negative. Our FY19 EPS estimate goes to $9.08, down from $9.60 (guidance $9.40 – $9.70). For FY20 our estimate goes to $9.65, down from $10.85. The estimate cut is driven by 1) higher interest expense; 2) higher share count since we had assumed share repurchase in the model; and 3) the lack of any meaningful benefit flowing through at the equity line as a current return on the investment.””

Shares of NYSE:STZ opened at $214.83 on Friday. Constellation Brands, Inc. Class A has a one year low of $197.32 and a one year high of $236.62. The company has a quick ratio of 0.77, a current ratio of 1.81 and a debt-to-equity ratio of 0.89. The company has a market cap of $41.16 billion, a PE ratio of 24.64, a price-to-earnings-growth ratio of 2.12 and a beta of 0.03.

Constellation Brands, Inc. Class A (NYSE:STZ) last issued its quarterly earnings results on Friday, June 29th. The company reported $2.20 EPS for the quarter, missing the consensus estimate of $2.42 by ($0.22). Constellation Brands, Inc. Class A had a return on equity of 19.81% and a net margin of 31.51%. The business had revenue of $2.05 billion for the quarter, compared to analyst estimates of $2.05 billion. During the same quarter in the prior year, the firm earned $2.34 EPS. The firm’s quarterly revenue was up 6.1% compared to the same quarter last year. equities research analysts forecast that Constellation Brands, Inc. Class A will post 9.33 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 24th. Investors of record on Friday, August 10th were paid a dividend of $0.74 per share. This represents a $2.96 annualized dividend and a yield of 1.38%. The ex-dividend date was Thursday, August 9th. Constellation Brands, Inc. Class A’s payout ratio is 10.67%.

A number of institutional investors have recently added to or reduced their stakes in the stock. Essex Financial Services Inc. boosted its stake in Constellation Brands, Inc. Class A by 10.2% during the 2nd quarter. Essex Financial Services Inc. now owns 2,696 shares of the company’s stock worth $590,000 after acquiring an additional 250 shares during the last quarter. ELCO Management Co. LLC boosted its stake in Constellation Brands, Inc. Class A by 6.6% during the 2nd quarter. ELCO Management Co. LLC now owns 4,120 shares of the company’s stock worth $902,000 after acquiring an additional 255 shares during the last quarter. Spinnaker Trust boosted its stake in Constellation Brands, Inc. Class A by 1.8% during the 2nd quarter. Spinnaker Trust now owns 14,476 shares of the company’s stock worth $3,167,000 after acquiring an additional 259 shares during the last quarter. 180 Wealth Advisors LLC boosted its stake in Constellation Brands, Inc. Class A by 15.8% during the 1st quarter. 180 Wealth Advisors LLC now owns 1,958 shares of the company’s stock worth $444,000 after acquiring an additional 267 shares during the last quarter. Finally, First Allied Advisory Services Inc. lifted its stake in Constellation Brands, Inc. Class A by 7.2% in the first quarter. First Allied Advisory Services Inc. now owns 4,012 shares of the company’s stock valued at $921,000 after buying an additional 269 shares in the last quarter. 73.49% of the stock is currently owned by institutional investors and hedge funds.

Constellation Brands, Inc, together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. It provides beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands.

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