Constellation Brands (NYSE:STZ) Shares Gap Up – Here’s Why

Constellation Brands, Inc. (NYSE:STZ)’s share price gapped up before the market opened on Friday . The stock had previously closed at $190.65, but opened at $196.91. Constellation Brands shares last traded at $191.28, with a volume of 572,156 shares.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Barclays lifted their price target on shares of Constellation Brands from $203.00 to $207.00 and gave the company an “overweight” rating in a research note on Monday, April 14th. BMO Capital Markets cut their price target on shares of Constellation Brands from $260.00 to $215.00 and set an “outperform” rating on the stock in a research note on Friday, April 11th. The Goldman Sachs Group cut their price target on shares of Constellation Brands from $260.00 to $225.00 and set a “buy” rating on the stock in a research note on Friday, April 11th. StockNews.com raised shares of Constellation Brands from a “sell” rating to a “hold” rating in a research note on Thursday, May 8th. Finally, Roth Mkm cut their price target on shares of Constellation Brands from $284.00 to $256.00 and set a “buy” rating on the stock in a research note on Thursday, April 3rd. Ten investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. According to data from MarketBeat.com, Constellation Brands presently has an average rating of “Moderate Buy” and a consensus target price of $225.74.

Constellation Brands Stock Performance

The stock’s 50-day moving average price is $184.10 and its 200 day moving average price is $199.20. The company has a debt-to-equity ratio of 1.26, a current ratio of 1.10 and a quick ratio of 0.46. The firm has a market cap of $34.85 billion, a P/E ratio of 52.62, a price-to-earnings-growth ratio of 1.52 and a beta of 1.75.

Constellation Brands (NYSE:STZ) last issued its earnings results on Wednesday, April 9th. The company reported $2.63 earnings per share for the quarter, topping analysts’ consensus estimates of $2.28 by $0.35. The business had revenue of $2.13 billion for the quarter, compared to the consensus estimate of $2.14 billion. Constellation Brands had a net margin of 6.27% and a return on equity of 26.55%. The firm’s revenue for the quarter was up 1.2% on a year-over-year basis. During the same period in the previous year, the company earned $2.26 earnings per share. As a group, equities analysts predict that Constellation Brands, Inc. will post 13.5 EPS for the current year.

Constellation Brands Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 15th. Investors of record on Tuesday, April 29th were issued a dividend of $1.02 per share. This is an increase from Constellation Brands’s previous quarterly dividend of $1.01. The ex-dividend date was Tuesday, April 29th. This represents a $4.08 annualized dividend and a dividend yield of 2.08%. Constellation Brands’s payout ratio is presently -800.00%.

Insider Buying and Selling

In related news, EVP Samuel J. Glaetzer sold 3,150 shares of the company’s stock in a transaction dated Tuesday, May 13th. The shares were sold at an average price of $188.54, for a total value of $593,901.00. Following the transaction, the executive vice president now directly owns 3,126 shares in the company, valued at approximately $589,376.04. This represents a 50.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 12.19% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Constellation Brands

Institutional investors and hedge funds have recently modified their holdings of the business. Van ECK Associates Corp grew its stake in shares of Constellation Brands by 1,844.7% in the fourth quarter. Van ECK Associates Corp now owns 924,274 shares of the company’s stock valued at $204,265,000 after acquiring an additional 876,745 shares in the last quarter. Copperleaf Capital LLC acquired a new stake in Constellation Brands during the fourth quarter worth about $343,000. Grimes & Company Inc. acquired a new stake in Constellation Brands during the fourth quarter worth about $6,099,000. Empowered Funds LLC grew its stake in Constellation Brands by 62.8% during the fourth quarter. Empowered Funds LLC now owns 16,575 shares of the company’s stock worth $3,663,000 after buying an additional 6,391 shares in the last quarter. Finally, Southern Style Financial Inc. acquired a new stake in shares of Constellation Brands in the 4th quarter valued at approximately $3,074,000. 77.34% of the stock is currently owned by institutional investors and hedge funds.

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.