Constellation Brands (NYSE:STZ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday. The brokerage presently has a $222.00 price objective on the stock. Zacks Investment Research‘s target price suggests a potential upside of 16.40% from the stock’s current price.
According to Zacks, “Constellation Brands surpassed the industry in the last three months, courtesy of its solid earnings trend, which continued in second-quarter fiscal 2019. Earnings reverted to its 14 quarter long record of positive surprises, after a miss in the previous quarter. Additionally, sales outpaced estimates in 10 out of the last 12 quarters. Higher sales at the beer, and wine and spirits segments as well as strong depletions and shipment volumes in the beer business aided results. Its constant brand-building efforts, acquisitions, investments in digital enablement for e-commerce initiatives and the new ERP platform are added positives. Moreover, management’s raised earnings outlook for fiscal 2019 drives optimism. However, higher marketing expenses and transportation costs have been denting operating margin, which remains a threat to profitability. Stiff competition, higher debt position and taxes are other concerns.”
A number of other research analysts have also weighed in on STZ. ValuEngine lowered Constellation Brands from a “buy” rating to a “hold” rating in a report on Tuesday, October 23rd. Macquarie set a $245.00 target price on Constellation Brands and gave the company a “buy” rating in a report on Friday, October 5th. Bank of America dropped their target price on Constellation Brands from $250.00 to $230.00 and set a “buy” rating on the stock in a report on Thursday, August 16th. Morgan Stanley dropped their target price on Constellation Brands from $258.00 to $251.00 and set a “buy” rating on the stock in a report on Thursday, September 27th. Finally, Pivotal Research restated a “buy” rating and issued a $265.00 target price on shares of Constellation Brands in a report on Wednesday, August 15th. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating, seventeen have assigned a buy rating and one has assigned a strong buy rating to the company. Constellation Brands presently has an average rating of “Buy” and an average target price of $244.27.
Constellation Brands (NYSE:STZ) last announced its quarterly earnings results on Thursday, October 4th. The company reported $2.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.60 by $0.27. Constellation Brands had a return on equity of 18.63% and a net margin of 38.18%. The business had revenue of $2.30 billion for the quarter, compared to analyst estimates of $2.25 billion. During the same quarter in the prior year, the company earned $2.47 earnings per share. The company’s quarterly revenue was up 10.1% on a year-over-year basis. Equities research analysts anticipate that Constellation Brands will post 9.43 earnings per share for the current year.
In related news, VP Thomas Michael Kane sold 4,419 shares of Constellation Brands stock in a transaction on Friday, October 19th. The stock was sold at an average price of $223.83, for a total transaction of $989,104.77. Following the sale, the vice president now directly owns 8,499 shares in the company, valued at $1,902,331.17. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Chairman Richard Sands sold 148,773 shares of Constellation Brands stock in a transaction on Monday, October 22nd. The stock was sold at an average price of $223.69, for a total value of $33,279,032.37. Following the sale, the chairman now owns 346,525 shares in the company, valued at $77,514,177.25. The disclosure for this sale can be found here. Insiders have sold 578,723 shares of company stock worth $129,438,449 over the last quarter. 15.80% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently modified their holdings of the stock. Sun Life Financial INC increased its position in Constellation Brands by 155.3% in the second quarter. Sun Life Financial INC now owns 457 shares of the company’s stock worth $100,000 after buying an additional 278 shares during the last quarter. Atlantic Trust LLC purchased a new stake in Constellation Brands in the second quarter worth $114,000. TLP Group LLC purchased a new stake in Constellation Brands in the third quarter worth $136,000. Truvestments Capital LLC purchased a new stake in Constellation Brands in the third quarter worth $137,000. Finally, Cornerstone Wealth Management LLC purchased a new stake in Constellation Brands in the second quarter worth $140,000. Institutional investors and hedge funds own 72.83% of the company’s stock.
About Constellation Brands
Constellation Brands, Inc, together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. It provides beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands.
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