Constellation Brands (NYSE:STZ) Trading 5.5% Higher on Strong Earnings

Constellation Brands Inc (NYSE:STZ)’s stock price traded up 5.5% during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $159.74 and last traded at $158.5560. 967,718 shares changed hands during trading, a decline of 59% from the average session volume of 2,369,001 shares. The stock had previously closed at $150.26.

The company reported $1.90 earnings per share for the quarter, beating the consensus estimate of $1.74 by $0.16. The firm had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $1.84 billion. Constellation Brands had a return on equity of 26.70% and a net margin of 17.29%.The company’s revenue for the quarter was down 11.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.63 EPS.

Constellation Brands Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 14th. Shareholders of record on Wednesday, April 29th will be given a $1.03 dividend. This is a boost from Constellation Brands’s previous quarterly dividend of $1.02. The ex-dividend date of this dividend is Wednesday, April 29th. This represents a $4.12 annualized dividend and a yield of 2.5%. Constellation Brands’s dividend payout ratio is currently 42.54%.

Constellation Brands News Roundup

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

• Positive Sentiment: Q4 beat on both EPS and revenue: Constellation reported $1.90 EPS and ~$1.92B revenue, topping consensus and easing near‑term investor concerns about execution. Zacks: Q4 Earnings Beat
• Positive Sentiment: Strong shareholder returns: Management returned >$1.6B to shareholders in FY2026 (large buybacks) and raised the quarterly dividend, shifting investor focus to cash generation and yield. QuiverQuant: Cash Returns
• Positive Sentiment: Analyst support: Wells Fargo raised its price target and maintained an overweight stance, providing upward pressure on sentiment. Benzinga: Wells Fargo PT Raise
• Neutral Sentiment: Leadership transition highlighted: Incoming President & CEO Nicholas Fink joined the earnings call, which investors viewed as a governance/strategy signal but not an immediate catalyst. GlobeNewswire: FY2026 Results & Call
• Neutral Sentiment: Broader market backdrop: U.S. market gains and risk‑on moves (ceasefire headlines, tech/AI chip news) helped risk assets today, providing a lift to STZ alongside stock‑specific news. Fool: Markets Extend Gains
• Negative Sentiment: Soft FY‑2027 guidance disappointed: Management issued EPS guidance of $11.20–$11.90, below consensus, and withdrew longer‑term (2028) guidance — a key reason some investors reacted negatively before sentiment swung back. Yahoo: FY27 Guidance
• Negative Sentiment: Demand weakness in wine & spirits: Revenue declined ~11% y/y as wine & spirits remained pressured; beer (Corona/Modelo/Pacifico) showed stabilization but didn’t fully offset category softness. Reuters: Sales Drop, Beer Helps

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. Barclays upped their price objective on Constellation Brands from $148.00 to $151.00 and gave the company an “equal weight” rating in a research report on Thursday, April 2nd. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Constellation Brands in a research report on Wednesday, March 18th. Wells Fargo & Company upped their price objective on Constellation Brands from $165.00 to $180.00 and gave the company an “overweight” rating in a research report on Wednesday. Sanford C. Bernstein upped their price objective on Constellation Brands from $195.00 to $197.00 and gave the company an “outperform” rating in a research report on Friday, January 9th. Finally, JPMorgan Chase & Co. upped their price objective on Constellation Brands from $155.00 to $163.00 and gave the company a “neutral” rating in a research report on Wednesday, April 1st. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $177.00.

Institutional Investors Weigh In On Constellation Brands

A number of hedge funds have recently made changes to their positions in STZ. Capital International Investors lifted its stake in shares of Constellation Brands by 48.5% during the 4th quarter. Capital International Investors now owns 6,442,600 shares of the company’s stock worth $888,930,000 after purchasing an additional 2,105,546 shares during the last quarter. Norges Bank purchased a new stake in shares of Constellation Brands during the 4th quarter worth $267,798,000. Ameriprise Financial Inc. lifted its stake in shares of Constellation Brands by 650.6% during the 2nd quarter. Ameriprise Financial Inc. now owns 1,769,741 shares of the company’s stock worth $287,889,000 after purchasing an additional 1,533,961 shares during the last quarter. Berkshire Hathaway Inc lifted its stake in shares of Constellation Brands by 11.6% during the 2nd quarter. Berkshire Hathaway Inc now owns 13,400,000 shares of the company’s stock worth $2,179,912,000 after purchasing an additional 1,391,000 shares during the last quarter. Finally, Wellington Management Group LLP lifted its stake in shares of Constellation Brands by 14.0% during the 4th quarter. Wellington Management Group LLP now owns 6,018,653 shares of the company’s stock worth $830,333,000 after purchasing an additional 739,393 shares during the last quarter. 77.34% of the stock is currently owned by hedge funds and other institutional investors.

Constellation Brands Stock Up 8.5%

The company has a debt-to-equity ratio of 1.29, a quick ratio of 0.70 and a current ratio of 1.34. The stock has a market capitalization of $28.28 billion, a PE ratio of 17.00, a PEG ratio of 0.42 and a beta of 1.75. The business has a 50 day moving average of $154.56 and a two-hundred day moving average of $145.38.

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.