Constellation Brands (NYSE:STZ) Hits New 1-Year Low – Here’s Why

Constellation Brands Inc (NYSE:STZ) shares hit a new 52-week low during mid-day trading on Wednesday. The company traded as low as $111.54 and last traded at $112.7120, with a volume of 1578414 shares traded. The stock had previously closed at $112.92.

Analysts Set New Price Targets

Several brokerages recently commented on STZ. Deutsche Bank Aktiengesellschaft decreased their price target on Constellation Brands from $150.00 to $136.00 and set a “hold” rating on the stock in a research note on Friday, September 11th. Bank of America dropped their price objective 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. BMO Capital Markets reissued an “outperform” rating and set a $190.00 price objective on shares of Constellation Brands in a report on Thursday, July 2nd. Barclays reduced their target price on shares of Constellation Brands from $132.00 to $122.00 and set an “equal weight” rating on the stock in a research note on Tuesday, September 22nd. Finally, UBS Group lowered their target price on shares of Constellation Brands from $168.00 to $145.00 and set a “buy” rating on the stock in a report on Wednesday, September 23rd. Eleven investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $158.90.

Constellation Brands Stock Performance

The firm has a market capitalization of $19.26 billion, a P/E ratio of 10.76, a price-to-earnings-growth ratio of 2.24 and a beta of 0.44. The stock has a 50-day moving average of $127.30 and a 200 day moving average of $139.44. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.48 and a current ratio of 0.91.

Constellation Brands (NYSE:STZ) last released its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share for the quarter, missing analysts’ consensus estimates of $3.70 by ($0.27). Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The business had revenue of $2.43 billion for the quarter, compared to analyst estimates of $2.39 billion. During the same period in the prior year, the business earned $3.22 earnings per share. The company’s revenue for the quarter was down 3.3% on a year-over-year basis. On average, research analysts anticipate that Constellation Brands Inc will post 11.81 earnings per share for the current year.

Institutional Trading of Constellation Brands

Hedge funds and other institutional investors have recently made changes to their positions in the business. Capital World Investors lifted its position in Constellation Brands by 8.3% during the 4th quarter. Capital World Investors now owns 7,238,575 shares of the company’s stock worth $998,740,000 after buying an additional 553,974 shares in the last quarter. Capital International Investors increased its position in Constellation Brands by 48.5% in the 4th quarter. Capital International Investors now owns 6,442,600 shares of the company’s stock valued at $888,930,000 after acquiring an additional 2,105,546 shares in the last quarter. Van ECK Associates Corp raised its stake in shares of Constellation Brands by 11.0% in the fourth quarter. Van ECK Associates Corp now owns 2,397,275 shares of the company’s stock worth $330,728,000 after acquiring an additional 237,073 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Constellation Brands by 5.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,826,652 shares of the company’s stock worth $274,029,000 after acquiring an additional 88,538 shares during the last quarter. Finally, Bank of America Corp DE raised its stake in shares of Constellation Brands by 9.5% in the first quarter. Bank of America Corp DE now owns 1,403,275 shares of the company’s stock worth $210,491,000 after acquiring an additional 121,515 shares during the last quarter. 77.34% of the stock is currently owned by institutional investors and hedge funds.

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.