Constellation Brands (NYSE:STZ) Sets New 1-Year Low on Analyst Downgrade

Constellation Brands Inc (NYSE:STZ)’s share price reached a new 52-week low during mid-day trading on Tuesday after Wells Fargo & Company lowered their price target on the stock from $170.00 to $140.00. Wells Fargo & Company currently has an overweight rating on the stock. Constellation Brands traded as low as $110.60 and last traded at $113.2850, with a volume of 2942047 shares traded. The stock had previously closed at $112.87.

A number of other analysts have also recently weighed in on STZ. TD Cowen cut their price target on Constellation Brands from $174.00 to $150.00 and set a “buy” rating on the stock in a research note on Thursday, September 17th. Bank of America dropped their price objective on Constellation Brands from $152.00 to $145.00 and set an “underperform” rating on the stock in a report on Thursday, July 2nd. UBS Group cut their target price on Constellation Brands from $168.00 to $145.00 and set a “buy” rating on the stock in a research report on Wednesday, September 23rd. Barclays decreased their target price on Constellation Brands from $132.00 to $122.00 and set an “equal weight” rating for the company in a research note on Tuesday, September 22nd. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $185.00 price target on shares of Constellation Brands in a report on Thursday, July 2nd. Eleven investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $157.29.

More Constellation Brands News

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

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Adjusted EPS was $3.74 versus the $3.55 consensus, while revenue rose 6.1% year over year to $2.63 billion, helped by higher beer shipments and growth in wine and spirits. Constellation Brands tops second-quarter estimates
• Positive Sentiment: Wine and spirits showed strong momentum. Segment sales increased 17%, while beer sales rose 5%. Free cash flow also improved, supporting the company’s financial flexibility. Constellation Brands profit rises
• Positive Sentiment: SpikedAde acquisition expands its ready-to-drink portfolio. Constellation paid $75 million at closing, with potential additional consideration of up to $278 million, targeting the growing sports-drink-inspired RTD category. SpikedAde acquisition
• Positive Sentiment: The dividend remains supportive. STZ declared a quarterly dividend of $1.03 per share, equivalent to $4.12 annually and an indicated yield of roughly 3.5% based on the supplied background data.
• Neutral Sentiment: Management maintained its fiscal 2027 outlook. Adjusted EPS guidance of $11.20-$11.90 was broadly consistent with expectations, but did not provide a major upside revision.
• Neutral Sentiment: Broader market conditions were mixed. Rising Treasury yields and weaker overall market sentiment may have limited enthusiasm for the earnings beat, although STZ’s defensive consumer-staples characteristics provided some support.
• Negative Sentiment: Core-brand demand remains a concern. Modelo Especial depletions fell about 2% and Corona Extra declined about 5%, raising questions about whether the beer recovery is durable as consumers become more value-conscious. Constellation Brands beer demand
• Negative Sentiment: Analysts remain cautious. Goldman Sachs lowered its price target to $155, while Bank of America said the beer turnaround remains unproven. Morgan Stanley also warned of potential second-half margin pressure.

Institutional Trading of Constellation Brands

A number of hedge funds and other institutional investors have recently made changes to their positions in STZ. Ables Iannone Moore & Associates Inc. increased its position in Constellation Brands by 105.2% in the 3rd quarter. Ables Iannone Moore & Associates Inc. now owns 16,904 shares of the company’s stock valued at $1,911,000 after acquiring an additional 8,667 shares during the period. Ally Financial Inc. acquired a new stake in Constellation Brands during the 2nd quarter worth approximately $1,600,000. Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in Constellation Brands during the 2nd quarter worth approximately $31,582,000. Concurrent Investment Advisors LLC grew its stake in shares of Constellation Brands by 1,613.6% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 27,915 shares of the company’s stock valued at $3,883,000 after purchasing an additional 26,286 shares during the last quarter. Finally, CORDA Investment Management LLC. increased its holdings in shares of Constellation Brands by 12.6% in the first quarter. CORDA Investment Management LLC. now owns 140,050 shares of the company’s stock valued at $21,008,000 after purchasing an additional 15,694 shares during the period. Institutional investors and hedge funds own 77.34% of the company’s stock.

Constellation Brands Price Performance

The company has a 50 day moving average price of $126.03 and a 200 day moving average price of $138.41. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.91 and a quick ratio of 0.48. The firm has a market cap of $20.18 billion, a PE ratio of 10.60, a PEG ratio of 2.30 and a beta of 0.44.

Constellation Brands (NYSE:STZ) last announced its quarterly earnings data on Tuesday, October 6th. The company reported $3.74 EPS for the quarter, topping analysts’ consensus estimates of $3.62 by $0.12. The company had revenue of $2.63 billion during the quarter, compared to the consensus estimate of $2.54 billion. Constellation Brands had a net margin of 19.57% and a return on equity of 25.17%. Constellation Brands’s quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.63 EPS. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Sell-side analysts expect that Constellation Brands Inc will post 11.81 EPS for the current fiscal year.

Constellation Brands Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be given a $1.03 dividend. The ex-dividend date is Friday, October 30th. This represents a $4.12 dividend on an annualized basis and a yield of 3.5%. Constellation Brands’s dividend payout ratio (DPR) is presently 39.31%.

Constellation Brands Company Profile

Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.

The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation’s products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.