Constellation Brands (NYSE:STZ) Shares Gap Down Following Weak Earnings

Constellation Brands, Inc. (NYSE:STZGet Free Report) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $219.28, but opened at $203.11. Constellation Brands shares last traded at $201.54, with a volume of 879,275 shares.

The company reported $3.25 earnings per share for the quarter, missing analysts’ consensus estimates of $3.33 by ($0.08). The firm had revenue of $2.46 billion for the quarter, compared to the consensus estimate of $2.53 billion. Constellation Brands had a return on equity of 25.34% and a net margin of 5.29%. The company’s revenue was down .3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.19 EPS.

Constellation Brands Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 21st. Stockholders of record on Friday, February 7th will be paid a dividend of $1.01 per share. This represents a $4.04 annualized dividend and a dividend yield of 2.02%. Constellation Brands’s dividend payout ratio is currently 130.74%.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on STZ. JPMorgan Chase & Co. reduced their price objective on Constellation Brands from $293.00 to $262.00 and set an “overweight” rating on the stock in a research report on Tuesday. Royal Bank of Canada reiterated an “outperform” rating and issued a $308.00 price target on shares of Constellation Brands in a report on Tuesday. TD Cowen decreased their price objective on Constellation Brands from $270.00 to $260.00 and set a “hold” rating for the company in a report on Wednesday. Wells Fargo & Company lowered their target price on Constellation Brands from $295.00 to $275.00 and set an “overweight” rating on the stock in a research report on Tuesday. Finally, Needham & Company LLC restated a “buy” rating and set a $280.00 price target on shares of Constellation Brands in a research note on Friday, December 20th. Five analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the stock. According to MarketBeat.com, Constellation Brands has an average rating of “Moderate Buy” and an average price target of $284.75.

View Our Latest Report on Constellation Brands

Insiders Place Their Bets

In other news, CEO William A. Newlands sold 7,426 shares of the stock in a transaction that occurred on Tuesday, October 29th. The stock was sold at an average price of $237.24, for a total value of $1,761,744.24. Following the completion of the transaction, the chief executive officer now owns 7,274 shares of the company’s stock, valued at approximately $1,725,683.76. This represents a 50.52 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Robert Sands sold 119,274 shares of Constellation Brands stock in a transaction that occurred on Wednesday, October 16th. The shares were sold at an average price of $242.37, for a total value of $28,908,439.38. Following the sale, the director now owns 431,729 shares in the company, valued at $104,638,157.73. This represents a 21.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 189,956 shares of company stock worth $46,058,091. 12.19% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Constellation Brands

Several hedge funds have recently bought and sold shares of the business. International Assets Investment Management LLC boosted its position in shares of Constellation Brands by 23,184.7% in the 3rd quarter. International Assets Investment Management LLC now owns 499,689 shares of the company’s stock worth $128,765,000 after purchasing an additional 497,543 shares in the last quarter. State Street Corp boosted its holdings in Constellation Brands by 6.0% in the third quarter. State Street Corp now owns 7,144,428 shares of the company’s stock worth $1,841,048,000 after purchasing an additional 402,211 shares during the last quarter. Dimensional Fund Advisors LP grew its position in Constellation Brands by 31.8% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,002,332 shares of the company’s stock worth $257,865,000 after purchasing an additional 241,982 shares during the period. NFJ Investment Group LLC raised its stake in Constellation Brands by 617.3% during the 3rd quarter. NFJ Investment Group LLC now owns 108,382 shares of the company’s stock valued at $27,929,000 after buying an additional 93,273 shares during the last quarter. Finally, World Investment Advisors LLC raised its stake in Constellation Brands by 4,601.2% during the 3rd quarter. World Investment Advisors LLC now owns 87,771 shares of the company’s stock valued at $22,618,000 after buying an additional 85,904 shares during the last quarter. Institutional investors own 77.34% of the company’s stock.

Constellation Brands Price Performance

The stock has a market capitalization of $36.32 billion, a P/E ratio of 64.74, a PEG ratio of 1.69 and a beta of 1.75. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.53 and a current ratio of 1.25. The firm has a fifty day moving average price of $232.90 and a two-hundred day moving average price of $242.14.

Constellation Brands Company Profile

(Get Free Report)

Constellation Brands, Inc, together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands.

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