Wells Fargo & Company Has Lowered Expectations for Constellation Brands (NYSE:STZ) Stock Price

Constellation Brands (NYSE:STZ) had its price objective dropped by analysts at Wells Fargo & Company from $170.00 to $140.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Wells Fargo & Company‘s target price indicates a potential upside of 20.32% from the stock’s previous close.

STZ has been the subject of a number of other reports. Jefferies Financial Group cut their price target on Constellation Brands from $147.00 to $135.00 and set a “hold” rating for the company in a report on Monday, September 14th. 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. TD Cowen lowered their price objective on shares of Constellation Brands from $174.00 to $150.00 and set a “buy” rating for the company in a research report on Thursday, September 17th. Freedom Capital downgraded shares of Constellation Brands from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, July 1st. Finally, Deutsche Bank Aktiengesellschaft dropped their target price on shares of Constellation Brands from $150.00 to $136.00 and set a “hold” rating for the company in a research note on Friday, September 11th. Eleven analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, Constellation Brands has a consensus rating of “Hold” and a consensus target price of $157.40.

Constellation Brands Stock Up 2.7%

Shares of STZ opened at $116.36 on Monday. The company has a market capitalization of $19.87 billion, a P/E ratio of 11.10, a PEG ratio of 2.25 and a beta of 1.75. Constellation Brands has a one year low of $110.60 and a one year high of $168.60. The business’s 50 day simple moving average is $126.30 and its 200-day simple moving average is $138.65. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.91 and a quick ratio of 0.48.

Constellation Brands (NYSE:STZ) last released its quarterly earnings results on Tuesday, October 6th. The company reported $3.74 earnings per share for the quarter, beating analysts’ consensus estimates of $3.55 by $0.19. Constellation Brands had a return on equity of 25.58% and a net margin of 18.87%.The firm had revenue of $2.63 billion during the quarter, compared to analysts’ expectations of $2.54 billion. During the same period last year, the firm posted $3.63 EPS. The business’s revenue was up 6.1% on a year-over-year basis. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, sell-side analysts predict that Constellation Brands will post 11.81 EPS for the current fiscal year.

Hedge Funds Weigh In On Constellation Brands

Several hedge funds have recently added to or reduced their stakes in the company. Ally Financial Inc. bought a new position in shares of Constellation Brands during the 2nd quarter valued at about $1,600,000. Diamond Hill Capital Management LLC Investment Advisor bought a new stake in Constellation Brands during the 2nd quarter worth approximately $31,582,000. Ables Iannone Moore & Associates Inc. raised its holdings in Constellation Brands by 105.2% during the 3rd quarter. Ables Iannone Moore & Associates Inc. now owns 16,904 shares of the company’s stock worth $1,911,000 after buying an additional 8,667 shares during the period. Concurrent Investment Advisors LLC raised its holdings in Constellation Brands by 1,613.6% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 27,915 shares of the company’s stock worth $3,883,000 after buying an additional 26,286 shares during the period. Finally, CORDA Investment Management LLC. raised its holdings in Constellation Brands by 12.6% during the 1st quarter. CORDA Investment Management LLC. now owns 140,050 shares of the company’s stock worth $21,008,000 after buying an additional 15,694 shares during the period. Institutional investors own 77.34% of the company’s stock.

Key Constellation Brands News

Here are the key news stories impacting Constellation Brands this week:

• Positive Sentiment: Adjusted earnings were $3.74 per share, ahead of the $3.55 consensus estimate, while revenue rose 6.1% year over year to $2.63 billion, surpassing expectations of approximately $2.54 billion. Constellation Brands Q2 earnings
• Positive Sentiment: Beer sales increased 5% and wine and spirits sales climbed 17%. Net income attributable to Constellation rose 21% to $565.8 million, while year-to-date free cash flow reached approximately $1.1 billion. Constellation Brands profit rises
• Positive Sentiment: Constellation announced the acquisition of spirit-based ready-to-drink brand SpikedAde for $75 million at closing, with potential contingent payments of up to $278 million over five years. The deal expands STZ’s exposure to the growing RTD category. SpikedAde acquisition
• Neutral Sentiment: The company repurchased $530 million of shares year to date and declared a quarterly Class A dividend of $1.03, supporting shareholder returns but not offsetting concerns about the outlook.
• Negative Sentiment: Fiscal 2027 EPS guidance of $11.20 to $11.90 was below the roughly $11.74 analyst consensus at the midpoint and was viewed as disappointing despite the quarterly beat. STZ guidance reaction
• Negative Sentiment: Core brand volumes showed weakness: Modelo Especial depletions fell about 2% and Corona Extra declined about 5%. Reports also cited soft consumer spending and an unchanged full-year outlook, making investors more concerned about demand and margins than the stronger-than-expected quarter. Modelo and Corona volume report

Constellation Brands Company Profile

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.