Constellation Brands Inc (NYSE:STZ) Receives Average Rating of “Hold” from Brokerages

Constellation Brands Inc (NYSE:STZ) has been given a consensus rating of “Hold” by the twenty-three ratings firms that are presently covering the stock, Marketbeat reports. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $167.8947.

STZ has been the subject of a number of recent analyst reports. TD Cowen reaffirmed a “buy” rating and set a $174.00 price target on shares of Constellation Brands in a report on Wednesday. BMO Capital Markets reissued an “outperform” rating and issued a $190.00 price objective on shares of Constellation Brands in a research note on Thursday. Needham & Company LLC restated a “buy” rating and set a $185.00 target price on shares of Constellation Brands in a report on Thursday. Sanford C. Bernstein restated an “outperform” rating on shares of Constellation Brands in a research note on Wednesday. Finally, Roth Mkm reaffirmed a “buy” rating and issued a $209.00 price target on shares of Constellation Brands in a report on Thursday.

Insider Activity

In other news, EVP James O. Bourdeau sold 4,407 shares of the company’s stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total transaction of $631,258.68. Following the transaction, the executive vice president owned 9,109 shares of the company’s stock, valued at $1,304,773.16. This represents a 32.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 12.20% of the stock is owned by company insiders.

Institutional Trading of Constellation Brands

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Nordea Investment Management AB boosted its position in shares of Constellation Brands by 6.1% during the fourth quarter. Nordea Investment Management AB now owns 867,776 shares of the company’s stock worth $120,300,000 after purchasing an additional 49,625 shares in the last quarter. Hudson Edge Investment Partners Inc. increased its position in shares of Constellation Brands by 36.1% in the 4th quarter. Hudson Edge Investment Partners Inc. now owns 48,062 shares of the company’s stock valued at $6,631,000 after buying an additional 12,746 shares in the last quarter. Swiss Life Asset Management Ltd raised its stake in Constellation Brands by 99.1% during the 4th quarter. Swiss Life Asset Management Ltd now owns 38,489 shares of the company’s stock worth $5,310,000 after buying an additional 19,161 shares during the period. Dimensional Fund Advisors LP raised its stake in Constellation Brands by 3.2% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,854,686 shares of the company’s stock worth $249,819,000 after buying an additional 57,434 shares during the period. Finally, Banco Bilbao Vizcaya Argentaria S.A. lifted its holdings in Constellation Brands by 36.8% during the third quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 46,802 shares of the company’s stock worth $6,299,000 after acquiring an additional 12,602 shares in the last quarter. 77.34% of the stock is currently owned by institutional investors and hedge funds.

Constellation Brands News Summary

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

• Positive Sentiment: Constellation’s Q1 results were better than expected, helped by beer growth, wine and spirits momentum, margin gains, and strong free cash flow, while the company reaffirmed full-year guidance. Q1 Deep Dive: Evaluating STZ’s Financial and Operating Metrics
• Positive Sentiment: Several brokers remained constructive, including BMO Capital Markets, Royal Bank of Canada, TD Cowen, and Needham, with some reiterating buy/outperform ratings and high price targets well above the current trading level. Analyst rating updates
• Neutral Sentiment: Analysts are split on the stock, with a number of price-target cuts from JPMorgan, Deutsche Bank, Barclays, Morgan Stanley, and Bank of America offset by other firms maintaining positive views. Analyst forecast changes after Q1
• Neutral Sentiment: Management’s earnings call commentary was described as “cautious confidence,” suggesting the company sees near-term volatility but remains focused on brand strength and cash generation. Constellation Brands Earnings Call Shows Cautious Confidence
• Negative Sentiment: Freedom Capital downgraded Constellation Brands to hold, adding to the cautious tone around the stock. Constellation Brands was downgraded by Freedom Capital
• Negative Sentiment: Commentary from analysts and company coverage highlighted long-term risks tied to alcohol consumption trends, softer beer demand, and consumer selectivity, which could weigh on growth expectations. Constellation Faces Long-Term Risks Related to Alcohol Consumption

Constellation Brands Price Performance

Shares of Constellation Brands stock opened at $137.36 on Friday. The company has a current ratio of 0.91, a quick ratio of 0.55 and a debt-to-equity ratio of 1.06. The stock has a market capitalization of $23.65 billion, a price-to-earnings ratio of 13.11, a P/E/G ratio of 4.07 and a beta of 0.39. Constellation Brands has a 1-year low of $126.45 and a 1-year high of $178.13. The firm’s 50-day moving average price is $144.68 and its two-hundred day moving average price is $150.00.

Constellation Brands (NYSE:STZ) last posted its quarterly earnings data on Tuesday, June 30th. The company reported $3.43 earnings per share 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 firm had revenue of $2.43 billion for the quarter, compared to analyst estimates of $2.39 billion. During the same period in the previous year, the business posted $3.22 EPS. The business’s quarterly revenue was down 3.3% on a year-over-year basis. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. On average, equities analysts predict that Constellation Brands will post 11.72 earnings per share for the current fiscal year.

Constellation Brands Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 13th. Stockholders of record on Thursday, July 30th will be given a dividend of $1.03 per share. The ex-dividend date is Thursday, July 30th. This represents a $4.12 dividend on an annualized basis and a dividend yield of 3.0%. Constellation Brands’s payout ratio is presently 39.31%.

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.