Constellation Brands (NYSE:STZ) Reaches New 52-Week Low – What’s Next?

Constellation Brands, Inc. (NYSE:STZ) hit a new 52-week low during trading on Monday . The stock traded as low as $166.14 and last traded at $172.44, with a volume of 151352 shares traded. The stock had previously closed at $180.80.

Analyst Ratings Changes

STZ has been the topic of a number of research reports. StockNews.com lowered shares of Constellation Brands from a “hold” rating to a “sell” rating in a research note on Tuesday, January 28th. Needham & Company LLC reiterated a “buy” rating and set a $240.00 target price on shares of Constellation Brands in a report on Monday, January 27th. JPMorgan Chase & Co. restated a “neutral” rating and issued a $203.00 target price (down previously from $262.00) on shares of Constellation Brands in a research note on Monday, January 13th. Piper Sandler cut Constellation Brands from an “overweight” rating to a “neutral” rating and reduced their price target for the stock from $245.00 to $200.00 in a research note on Monday. Finally, Evercore ISI decreased their price objective on Constellation Brands from $300.00 to $250.00 and set an “outperform” rating for the company in a report on Monday, January 13th. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and twelve have given a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $254.29.

Constellation Brands Stock Down 1.0 %

The company’s 50 day simple moving average is $214.07 and its 200-day simple moving average is $233.24. The company has a current ratio of 1.10, a quick ratio of 0.46 and a debt-to-equity ratio of 1.26. The firm has a market cap of $31.22 billion, a P/E ratio of 46.43, a PEG ratio of 1.59 and a beta of 0.90.

Constellation Brands (NYSE:STZ) last issued its quarterly earnings data on Friday, January 10th. The company reported $3.25 earnings per share for the quarter, missing analysts’ consensus estimates of $3.33 by ($0.08). Constellation Brands had a net margin of 6.27% and a return on equity of 26.55%. The company had revenue of $2.46 billion for the quarter, compared to the consensus estimate of $2.53 billion. During the same quarter last year, the company earned $3.19 EPS. The firm’s revenue for the quarter was down .3% on a year-over-year basis. Research analysts forecast that Constellation Brands, Inc. will post 13.52 earnings per share for the current fiscal year.

Constellation Brands Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, February 21st. Shareholders of record on Friday, February 7th will be paid a dividend of $1.01 per share. The ex-dividend date is Friday, February 7th. This represents a $4.04 dividend on an annualized basis and a dividend yield of 2.34%. Constellation Brands’s dividend payout ratio is currently 108.60%.

Insider Activity

In other Constellation Brands news, CEO William A. Newlands sold 25,000 shares of the firm’s stock in a transaction that occurred on Thursday, November 14th. The shares were sold at an average price of $243.58, for a total transaction of $6,089,500.00. Following the sale, the chief executive officer now owns 7,274 shares in the company, valued at approximately $1,771,800.92. This trade represents a 77.46 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director William T. Giles purchased 1,000 shares of the stock in a transaction on Friday, January 17th. The shares were purchased at an average cost of $186.39 per share, for a total transaction of $186,390.00. Following the acquisition, the director now directly owns 1,463 shares of the company’s stock, valued at approximately $272,688.57. This represents a 215.98 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders sold 61,746 shares of company stock valued at $15,017,097 in the last quarter. 12.19% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Grimes & Company Inc. purchased a new position in Constellation Brands in the 4th quarter worth approximately $6,099,000. Southern Style Financial Inc. purchased a new position in shares of Constellation Brands during the fourth quarter valued at about $3,074,000. Paloma Partners Management Co increased its holdings in shares of Constellation Brands by 568.4% in the third quarter. Paloma Partners Management Co now owns 30,000 shares of the company’s stock worth $7,731,000 after purchasing an additional 25,512 shares during the last quarter. Nomura Asset Management Co. Ltd. lifted its position in shares of Constellation Brands by 3.7% in the third quarter. Nomura Asset Management Co. Ltd. now owns 84,204 shares of the company’s stock worth $21,699,000 after buying an additional 2,980 shares in the last quarter. Finally, Empowered Funds LLC boosted its stake in Constellation Brands by 318.8% during the third quarter. Empowered Funds LLC now owns 10,184 shares of the company’s stock valued at $2,624,000 after buying an additional 7,752 shares during the last quarter. Hedge funds and other institutional investors own 77.34% of the company’s stock.

Constellation Brands Company Profile

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.