Constellation Brands (NYSE:STZ) Downgraded to Sell Rating by StockNews.com

StockNews.com cut shares of Constellation Brands (NYSE:STZ) from a hold rating to a sell rating in a report issued on Tuesday.

Several other research firms have also weighed in on STZ. Morgan Stanley reduced their target price on Constellation Brands from $280.00 to $220.00 and set an “overweight” rating for the company in a report on Monday, January 13th. Roth Mkm restated a “buy” rating and issued a $298.00 price objective on shares of Constellation Brands in a research note on Friday, October 4th. Jefferies Financial Group reiterated a “hold” rating and issued a $201.00 target price (down from $310.00) on shares of Constellation Brands in a research note on Monday, January 13th. Barclays cut their target price on shares of Constellation Brands from $282.00 to $214.00 and set an “overweight” rating for the company in a research report on Tuesday, January 14th. Finally, BMO Capital Markets lowered their price target on Constellation Brands from $315.00 to $305.00 and set an “outperform” rating on the stock in a research report on Tuesday, October 15th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and thirteen have assigned a buy rating to the company. According to MarketBeat, Constellation Brands presently has an average rating of “Moderate Buy” and an average price target of $257.14.

Constellation Brands Price Performance

NYSE STZ opened at $183.16 on Tuesday. The company has a quick ratio of 0.46, a current ratio of 1.10 and a debt-to-equity ratio of 1.26. The stock has a market capitalization of $33.10 billion, a PE ratio of 49.24, a price-to-earnings-growth ratio of 1.58 and a beta of 0.91. Constellation Brands has a 12-month low of $176.51 and a 12-month high of $274.87. The company has a 50 day moving average price of $220.02 and a two-hundred day moving average price of $235.70.

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

Constellation Brands Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 21st. Investors of record on Friday, February 7th will be paid a $1.01 dividend. The ex-dividend date of this dividend is Friday, February 7th. This represents a $4.04 dividend on an annualized basis and a yield of 2.21%. Constellation Brands’s payout ratio is currently 108.60%.

Insiders Place Their Bets

In other news, EVP James A. Jr. Sabia sold 36,086 shares of the stock in a transaction that occurred on Thursday, November 14th. The stock was sold at an average price of $242.99, for a total value of $8,768,537.14. Following the completion of the transaction, the executive vice president now directly owns 16,042 shares of the company’s stock, valued at approximately $3,898,045.58. This represents a 69.23 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO William A. Newlands sold 25,000 shares of the business’s stock in a transaction on Thursday, November 14th. The shares were sold at an average price of $243.58, for a total value of $6,089,500.00. Following the completion of the sale, the chief executive officer now directly owns 7,274 shares in the company, valued at approximately $1,771,800.92. This represents a 77.46 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 61,746 shares of company stock worth $15,017,097 over the last quarter. Company insiders own 12.19% of the company’s stock.

Institutional Investors Weigh In On Constellation Brands

A number of hedge funds have recently made changes to their positions in STZ. Union Bancaire Privee UBP SA bought a new stake in Constellation Brands during the fourth quarter worth about $28,000. Versant Capital Management Inc grew its position in Constellation Brands by 887.5% during the 4th quarter. Versant Capital Management Inc now owns 158 shares of the company’s stock worth $35,000 after acquiring an additional 142 shares during the last quarter. Eastern Bank acquired a new stake in Constellation Brands during the 3rd quarter valued at $39,000. FSA Wealth Management LLC bought a new position in Constellation Brands in the 3rd quarter valued at $42,000. Finally, Truvestments Capital LLC acquired a new position in Constellation Brands in the third quarter worth $60,000. Institutional investors and hedge funds own 77.34% of the company’s stock.

About Constellation Brands

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.