Piper Sandler Reiterates Neutral Rating for Constellation Brands (NYSE:STZ)

Constellation Brands (NYSE:STZ)‘s stock had its “neutral” rating reiterated by equities researchers at Piper Sandler in a research report issued on Wednesday,Benzinga reports. They presently have a $160.00 price objective on the stock. Piper Sandler’s price target indicates a potential upside of 18.63% from the stock’s current price.

Several other analysts have also issued reports on STZ. Barclays increased their target price on Constellation Brands from $151.00 to $170.00 and gave the stock an “equal weight” rating in a report on Friday, April 10th. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Constellation Brands from $154.00 to $155.00 and gave the stock a “hold” rating in a research note on Friday, April 10th. BMO Capital Markets set a $174.00 target price on shares of Constellation Brands in a report on Wednesday. Morgan Stanley boosted their target price on shares of Constellation Brands from $160.00 to $183.00 and gave the company an “equal weight” rating in a research report on Friday, April 10th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $185.00 price target on shares of Constellation Brands in a report on Friday, June 26th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $171.37.

Constellation Brands Stock Performance

Shares of STZ traded down $4.22 during mid-day trading on Wednesday, hitting $134.87. 2,369,309 shares of the company’s stock were exchanged, compared to its average volume of 2,295,785. The company has a quick ratio of 0.55, a current ratio of 1.08 and a debt-to-equity ratio of 1.16. Constellation Brands has a 52 week low of $126.45 and a 52 week high of $178.13. The stock’s 50-day simple moving average is $145.94 and its 200-day simple moving average is $150.26. The firm has a market cap of $23.22 billion, a price-to-earnings ratio of 14.04, a price-to-earnings-growth ratio of 4.12 and a beta of 0.39.

Constellation Brands (NYSE:STZ) last issued its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.20 by $0.23. The business had revenue of $2.43 billion during the quarter, compared to analysts’ expectations of $2.39 billion. Constellation Brands had a return on equity of 26.18% and a net margin of 17.29%.The firm’s revenue for the quarter was down 3.3% compared to the same quarter last year. During the same period in the previous year, the company posted $3.22 earnings per share. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. On average, equities research analysts expect that Constellation Brands will post 11.78 EPS for the current year.

Insiders Place Their Bets

In other Constellation Brands news, EVP James O. Bourdeau sold 4,407 shares of the business’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $143.24, for a total transaction of $631,258.68. Following the sale, the executive vice president owned 9,109 shares of the company’s stock, valued at approximately $1,304,773.16. The trade was a 32.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 12.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Constellation Brands

Several hedge funds have recently modified their holdings of the company. MV Capital Management Inc. bought a new position in Constellation Brands in the fourth quarter valued at about $26,000. Stance Capital LLC bought a new stake in shares of Constellation Brands during the third quarter worth about $26,000. Strive Financial Group LLC acquired a new position in shares of Constellation Brands in the fourth quarter valued at approximately $27,000. GoalVest Advisory LLC acquired a new position in shares of Constellation Brands in the fourth quarter valued at approximately $28,000. Finally, Cedar Mountain Advisors LLC bought a new position in Constellation Brands in the 1st quarter valued at approximately $33,000. Institutional investors and hedge funds 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: Constellation Brands topped Q1 earnings expectations, reporting adjusted EPS of $3.43 versus estimates around $3.20-$3.25, which signaled stronger-than-expected profitability. Reuters article
• Positive Sentiment: Revenue also came in slightly ahead of Wall Street forecasts at $2.43 billion, with beer strength and pricing helping offset weaker sales elsewhere. Zacks article
• Positive Sentiment: Management raised FY2027 EPS guidance to a range of $11.20 to $11.90, suggesting confidence in earnings power despite a tougher demand backdrop. Benzinga article
• Neutral Sentiment: The company declared a quarterly dividend of $1.03 per share, reinforcing its shareholder return profile. Seeking Alpha article
• Negative Sentiment: Revenue fell 3.3% year over year, and management cited softer volume trends and broader consumer weakness, raising questions about how durable beer demand will be. WSJ article
• Negative Sentiment: Investors are also weighing continued margin pressure from inflation and higher gas prices, which could limit near-term upside even after the earnings beat. Seeking Alpha article

About Constellation Brands

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.