Zacks Investment Research cut shares of Constellation Brands Inc. (NYSE:STZ) from a buy rating to a hold rating in a report published on Monday.

According to Zacks, “Constellation Brands boasts a portfolio of well-known brands and is the largest wine company in the world, which gives it a competitive edge and bolsters its solid market position. The company’s focus on brand building and efforts to include new products in its wine and spirits portfolio are key growth drivers. Also, it remains committed to expanding operations directed toward achieving business growth, as is evident from its numerous acquisitions. These factors, coupled with strong beer business also helped the company to post its eighth and sixth straight earnings and sales beat, respectively in the last reported quarter. The company also raised its fiscal 2017 view, highlighting its solid prospects. However, the risk of increasing taxes continues to be a concern for the company. Intense competition, currency fluctuations and seasonal nature of the company’s business can also dent its operating performance.”

Other equities analysts also recently issued research reports about the company. Morgan Stanley reiterated a buy rating on shares of Constellation Brands in a research note on Thursday, September 15th. Bank of America Corp. restated a buy rating and issued a $185.00 target price on shares of Constellation Brands in a research note on Friday, September 30th. RBC Capital Markets set a $181.00 target price on Constellation Brands and gave the stock a buy rating in a research note on Wednesday, September 28th. Pivotal Research restated a buy rating and issued a $200.00 target price on shares of Constellation Brands in a research note on Thursday, October 6th. Finally, Susquehanna restated a hold rating on shares of Constellation Brands in a research note on Monday, August 8th. One analyst has rated the stock with a sell rating, six have given a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the stock. The stock has an average rating of Buy and an average target price of $178.30.

Analyst Recommendations for Constellation Brands (NYSE:STZ)

Shares of Constellation Brands (NYSE:STZ) opened at 156.27 on Monday. The firm has a market cap of $31.42 billion, a P/E ratio of 26.89 and a beta of 0.59. Constellation Brands has a 12 month low of $130.23 and a 12 month high of $173.55. The company’s 50-day moving average price is $162.05 and its 200-day moving average price is $162.03.

Constellation Brands (NYSE:STZ) last released its quarterly earnings results on Wednesday, October 5th. The company reported $1.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.65 by $0.12. The business earned $2.02 billion during the quarter. Constellation Brands had a return on equity of 17.69% and a net margin of 15.64%. Constellation Brands’s revenue for the quarter was up 16.6% on a year-over-year basis. During the same quarter last year, the firm posted $1.56 EPS. On average, analysts predict that Constellation Brands will post $6.45 EPS for the current year.

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The business also recently declared a quarterly dividend, which was paid on Tuesday, November 22nd. Investors of record on Tuesday, November 8th were paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 1.02%. The ex-dividend date of this dividend was Friday, November 4th. Constellation Brands’s payout ratio is currently 27.49%.

A number of institutional investors have recently added to or reduced their stakes in STZ. Kistler Tiffany Companies LLC increased its position in Constellation Brands by 13.2% in the third quarter. Kistler Tiffany Companies LLC now owns 643 shares of the company’s stock worth $107,000 after buying an additional 75 shares during the last quarter. Quadrant Capital Group LLC increased its position in Constellation Brands by 2.1% in the second quarter. Quadrant Capital Group LLC now owns 678 shares of the company’s stock worth $103,000 after buying an additional 14 shares during the last quarter. PineBridge Investments L.P. increased its position in Constellation Brands by 331.3% in the second quarter. PineBridge Investments L.P. now owns 690 shares of the company’s stock worth $115,000 after buying an additional 530 shares during the last quarter. Hanson McClain Inc. increased its position in shares of Constellation Brands by 0.3% in the second quarter. Hanson McClain Inc. now owns 764 shares of the company’s stock worth $126,000 after buying an additional 2 shares in the last quarter. Finally, TLP Group LLC acquired a new position in shares of Constellation Brands during the third quarter worth $129,000. 73.53% of the stock is owned by institutional investors.

About Constellation Brands

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.

5 Day Chart for NYSE:STZ

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