Constellation Brands Inc. (STZ) Sees Strong Trading Volume on Strong Earnings
Constellation Brands Inc. (NYSE:STZ) shares saw unusually-high trading volume on Wednesday following a better than expected earnings announcement. Approximately 2,665,522 shares were traded during mid-day trading, an increase of 114% from the previous session’s volume of 1,248,429 shares.The stock last traded at $169.22 and had previously closed at $165.85.
The company reported $1.77 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.65 by $0.12. Constellation Brands had a return on equity of 17.66% and a net margin of 15.53%. The business earned $2.02 billion during the quarter. During the same period last year, the firm posted $1.56 EPS. Constellation Brands’s quarterly revenue was up 16.6% compared to the same quarter last year.
The company also recently declared a quarterly dividend, which will be paid on Tuesday, November 22nd. Shareholders of record on Tuesday, November 8th will be paid a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.96%. Constellation Brands’s dividend payout ratio is currently 28.78%.
STZ has been the subject of a number of recent research reports. Zacks Investment Research upgraded Constellation Brands from a “hold” rating to a “buy” rating and set a $186.00 price target for the company in a research note on Friday, September 16th. Bank of America Corp. restated a “buy” rating and set a $185.00 price target on shares of Constellation Brands in a research note on Friday, September 30th. Susquehanna restated a “hold” rating and set a $155.00 price target on shares of Constellation Brands in a research note on Tuesday, June 28th. Wells Fargo & Co. restated a “buy” rating on shares of Constellation Brands in a research note on Thursday, June 30th. Finally, Morgan Stanley restated a “buy” rating on shares of Constellation Brands in a research note on Thursday, September 15th. Six investment analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and an average price target of $175.27.
In related news, VP Thomas Michael Kane sold 7,000 shares of the stock in a transaction on Thursday, July 28th. The stock was sold at an average price of $163.26, for a total transaction of $1,142,820.00. Following the sale, the vice president now owns 8,764 shares in the company, valued at approximately $1,430,810.64. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP William F. Hackett sold 8,000 shares of the stock in a transaction on Thursday, July 21st. The shares were sold at an average price of $164.67, for a total value of $1,317,360.00. Following the sale, the executive vice president now owns 54,934 shares in the company, valued at approximately $9,045,981.78. The disclosure for this sale can be found here. Corporate insiders own 10.63% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in STZ. Fulton Bank N.A. raised its stake in Constellation Brands by 2.2% in the third quarter. Fulton Bank N.A. now owns 1,547 shares of the company’s stock valued at $258,000 after buying an additional 34 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund acquired a new position in shares of Constellation Brands during the second quarter valued at approximately $1,178,000. Kentucky Retirement Systems acquired a new position in shares of Constellation Brands during the second quarter valued at approximately $2,481,000. Mason Street Advisors LLC acquired a new position in shares of Constellation Brands during the second quarter valued at approximately $3,930,000. Finally, Howe & Rusling Inc. increased its position in shares of Constellation Brands by 3.7% in the second quarter. Howe & Rusling Inc. now owns 8,251 shares of the company’s stock valued at $1,365,000 after buying an additional 296 shares during the period. Institutional investors own 75.05% of the company’s stock.
The company’s 50-day moving average is $165.24 and its 200 day moving average is $160.15. The firm has a market cap of $34.02 billion, a P/E ratio of 30.567 and a beta of 0.63.
Constellation Brands Company Profile
Constellation Brands, Inc is an international beverage alcohol company. The Company is a producer and marketer of beer and wine the United States and Canada. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. It is a multi-category supplier (beer, wine and spirits) of beverage alcohol in the United States.
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