Constellation Brands (NYSE:STZ) Lowered to Hold Rating by Freedom Capital

Freedom Capital lowered shares of Constellation Brands (NYSE:STZ) from a strong-buy rating to a hold rating in a research note published on Wednesday,Zacks.com reports.

Several other research firms also recently commented on STZ. Bank of America cut their price objective on Constellation Brands from $152.00 to $145.00 and set an “underperform” rating for the company in a report on Thursday. BMO Capital Markets restated an “outperform” rating and set a $190.00 target price on shares of Constellation Brands in a report on Thursday. Barclays dropped their price target on shares of Constellation Brands from $170.00 to $139.00 and set an “equal weight” rating on the stock in a research report on Thursday. JPMorgan Chase & Co. cut their price target on shares of Constellation Brands from $169.00 to $165.00 and set a “neutral” rating for the company in a research note on Thursday. Finally, Citigroup reissued a “buy” rating on shares of Constellation Brands in a research report on Monday, May 18th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $167.89.

Constellation Brands Stock Performance

STZ opened at $137.36 on Wednesday. Constellation Brands has a 52-week low of $126.45 and a 52-week high of $178.13. The firm has a market capitalization of $23.65 billion, a PE ratio of 13.11, a PEG ratio of 4.08 and a beta of 0.39. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.55 and a current ratio of 0.91. The business’s 50-day simple moving average is $145.07 and its 200 day simple moving average is $150.09.

Constellation Brands (NYSE:STZ) last posted its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share for the quarter, missing analysts’ consensus estimates of $3.72 by ($0.29). The company had revenue of $2.43 billion during the quarter, compared to the consensus estimate of $2.39 billion. Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The firm’s revenue for the quarter was down 3.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $3.22 earnings per share. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, sell-side analysts expect that Constellation Brands will post 11.64 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 Thursday, August 13th. Investors of record on Thursday, July 30th will be issued a dividend of $1.03 per share. The ex-dividend date of this dividend is Thursday, July 30th. This represents a $4.12 dividend on an annualized basis and a dividend yield of 3.0%. Constellation Brands’s payout ratio is presently 42.96%.

Insiders Place Their Bets

In related news, EVP James O. Bourdeau sold 4,407 shares of the stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total value of $631,258.68. Following the sale, the executive vice president owned 9,109 shares in the company, valued at approximately $1,304,773.16. This represents a 32.61% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 12.20% of the company’s stock.

Hedge Funds Weigh In On Constellation Brands

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Nordea Investment Management AB lifted its position in Constellation Brands by 6.1% during the fourth quarter. Nordea Investment Management AB now owns 867,776 shares of the company’s stock worth $120,300,000 after acquiring an additional 49,625 shares during the last quarter. Hudson Edge Investment Partners Inc. increased its stake in shares of Constellation Brands by 36.1% during the fourth quarter. Hudson Edge Investment Partners Inc. now owns 48,062 shares of the company’s stock worth $6,631,000 after purchasing an additional 12,746 shares during the period. Swiss Life Asset Management Ltd lifted its holdings in Constellation Brands by 99.1% during the 4th quarter. Swiss Life Asset Management Ltd now owns 38,489 shares of the company’s stock worth $5,310,000 after purchasing an additional 19,161 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in Constellation Brands by 3.2% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,854,686 shares of the company’s stock worth $249,819,000 after purchasing an additional 57,434 shares during the last quarter. Finally, Banco Bilbao Vizcaya Argentaria S.A. grew its holdings in Constellation Brands by 36.8% in the 3rd quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 46,802 shares of the company’s stock valued at $6,299,000 after buying an additional 12,602 shares in the last quarter. 77.34% of the stock is owned by institutional investors.

Key Constellation Brands News

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

• Positive Sentiment: Constellation Brands beat fiscal Q1 earnings expectations, topped revenue estimates, and reaffirmed FY27 guidance, reinforcing confidence in its beer portfolio and profitability. Reuters: Constellation Brands beats quarterly profit estimates on beer demand
• Positive Sentiment: Analysts at BMO Capital Markets, RBC, and Needham reaffirmed bullish ratings and maintained elevated price targets, suggesting some believe the post-earnings pullback leaves room for upside. Benzinga analyst updates
• Neutral Sentiment: Constellation Brands also declared a $1.03 quarterly dividend, which supports total return but is not a major near-term catalyst for the stock. Seeking Alpha: Constellation Brands declares $1.03 dividend
• Negative Sentiment: Multiple firms lowered price targets after Q1, citing softer volume trends, consumer weakness, inflation, and gas-price pressure that could weigh on demand. Benzinga: Constellation Brands analysts slash forecasts after Q1 results
• Negative Sentiment: Morgan Stanley highlighted long-term risk tied to declining alcohol consumption, adding to concerns about the company’s long-run growth profile. Yahoo Finance: Constellation faces long-term risks related to alcohol consumption

Constellation Brands Company Profile

Constellation Brands, Inc is a leading producer and marketer of beer, wine and spirits, with operations spanning production, importation, marketing and distribution. The company’s beverage portfolio includes a range of premium and mainstream wines and spirits alongside major imported beer brands; in the U.S. market Constellation is widely known for its role in bringing Mexican imports such as Corona and Modelo to American consumers. Constellation supplies retail, on‑premise and foodservice channels and supports its brands with national sales and marketing platforms and supply‑chain capabilities.

The company traces its roots to the Canandaigua Wine Company, founded by Marvin Sands in 1945, and evolved through organic growth and acquisition into a diversified beverage company.