Constellation Brands (NYSE:STZ) Shares Gap Up on Better-Than-Expected Earnings

Constellation Brands Inc (NYSE:STZ)’s share price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $138.71, but opened at $144.50. Constellation Brands shares last traded at $142.57, with a volume of 1,696,957 shares.

The company reported $3.63 earnings per share for the quarter, topping analysts’ consensus estimates of $3.37 by $0.26. The firm had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.68 billion. Constellation Brands had a return on equity of 30.03% and a net margin of 11.88%.The firm’s revenue for the quarter was down 15.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.32 earnings per share.

Constellation Brands Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 13th. Shareholders of record on Thursday, October 30th will be given a $1.02 dividend. This represents a $4.08 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Thursday, October 30th. Constellation Brands’s dividend payout ratio is -170.71%.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on STZ. Bank of America cut their target price on Constellation Brands from $150.00 to $142.00 and set an “underperform” rating for the company in a research report on Wednesday, September 3rd. Raymond James Financial upgraded Constellation Brands to a “strong-buy” rating in a research report on Monday, July 7th. The Goldman Sachs Group cut their price objective on Constellation Brands from $196.00 to $168.00 and set a “buy” rating for the company in a research report on Thursday, October 2nd. Barclays reiterated an “equal weight” rating and set a $150.00 price objective (down previously from $202.00) on shares of Constellation Brands in a research report on Friday, September 12th. Finally, BNP Paribas Exane downgraded Constellation Brands from a “neutral” rating to an “underperform” rating and set a $123.00 price objective for the company. in a research report on Wednesday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nine have given a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $187.72.

Insider Transactions at Constellation Brands

In other Constellation Brands news, EVP James O. Bourdeau sold 821 shares of the business’s stock in a transaction on Monday, July 21st. The shares were sold at an average price of $169.00, for a total transaction of $138,749.00. Following the sale, the executive vice president directly owned 9,438 shares of the company’s stock, valued at $1,595,022. The trade was a 8.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 12.45% of the stock is currently owned by company insiders.

Institutional Trading of Constellation Brands

Large investors have recently added to or reduced their stakes in the company. Laurel Wealth Advisors LLC acquired a new stake in Constellation Brands during the 1st quarter valued at $32,000. Rakuten Securities Inc. raised its stake in Constellation Brands by 805.0% during the 1st quarter. Rakuten Securities Inc. now owns 181 shares of the company’s stock valued at $33,000 after purchasing an additional 161 shares during the period. Zions Bancorporation National Association UT acquired a new stake in Constellation Brands during the 1st quarter valued at $38,000. Flaharty Asset Management LLC acquired a new stake in Constellation Brands during the 1st quarter valued at $39,000. Finally, Hoey Investments Inc. acquired a new stake in Constellation Brands during the 2nd quarter valued at $40,000. 77.34% of the stock is owned by institutional investors and hedge funds.

Constellation Brands Stock Performance

The firm’s 50 day simple moving average is $152.33 and its 200-day simple moving average is $168.88. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.68 and a current ratio of 1.07. The company has a market capitalization of $24.69 billion, a price-to-earnings ratio of 20.44, a P/E/G ratio of 0.42 and a beta of 0.66.

Constellation Brands Company Profile

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.