Constellation Brands (NYSE:STZ) Shares Gap Down on Disappointing Earnings

Shares of Constellation Brands, Inc. (NYSE:STZ) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $219.28, but opened at $203.11. Constellation Brands shares last traded at $201.54, with a volume of 879,275 shares trading hands.

The company reported $3.25 EPS for the quarter, missing analysts’ consensus estimates of $3.33 by ($0.08). Constellation Brands had a net margin of 5.29% and a return on equity of 25.34%. The firm had revenue of $2.46 billion during the quarter, compared to the consensus estimate of $2.53 billion. During the same period in the prior year, the company earned $3.19 EPS. The firm’s revenue was down .3% compared to the same quarter last year.

Constellation Brands Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, February 21st. Shareholders of record on Friday, February 7th will be paid a $1.01 dividend. This represents a $4.04 annualized dividend and a yield of 2.02%. Constellation Brands’s dividend payout ratio is currently 130.74%.

Analysts Set New Price Targets

Several equities analysts recently commented on STZ shares. TD Cowen reduced their target price on shares of Constellation Brands from $270.00 to $260.00 and set a “hold” rating on the stock in a report on Wednesday. Bank of America reaffirmed a “neutral” rating and set a $255.00 price objective (down from $300.00) on shares of Constellation Brands in a research note on Monday, October 7th. JPMorgan Chase & Co. lowered their target price on Constellation Brands from $293.00 to $262.00 and set an “overweight” rating for the company in a research note on Tuesday. Evercore ISI dropped their price target on shares of Constellation Brands from $310.00 to $300.00 and set an “outperform” rating for the company in a research report on Friday, October 4th. Finally, Wells Fargo & Company lowered their target price on Constellation Brands from $295.00 to $275.00 and set an “overweight” rating for the company in a research note on Tuesday. Five research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $284.75.

Insiders Place Their Bets

In related news, CEO William A. Newlands sold 7,426 shares of the firm’s stock in a transaction dated Tuesday, October 29th. The stock was sold at an average price of $237.24, for a total transaction of $1,761,744.24. Following the completion of the sale, the chief executive officer now directly owns 7,274 shares of the company’s stock, valued at approximately $1,725,683.76. This trade represents a 50.52 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Samuel J. Glaetzer sold 1,510 shares of Constellation Brands stock in a transaction that occurred on Monday, October 14th. The shares were sold at an average price of $245.57, for a total transaction of $370,810.70. Following the completion of the transaction, the executive vice president now owns 4,970 shares of the company’s stock, valued at $1,220,482.90. This trade represents a 23.30 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 189,956 shares of company stock worth $46,058,091 in the last three months. Corporate insiders own 12.19% of the company’s stock.

Hedge Funds Weigh In On Constellation Brands

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Versant Capital Management Inc increased its holdings in Constellation Brands by 887.5% during the 4th quarter. Versant Capital Management Inc now owns 158 shares of the company’s stock worth $35,000 after purchasing an additional 142 shares during the last quarter. Ashton Thomas Private Wealth LLC acquired a new stake in shares of Constellation Brands in the second quarter valued at $36,000. Wellington Shields & Co. LLC raised its position in Constellation Brands by 50.0% in the second quarter. Wellington Shields & Co. LLC now owns 150 shares of the company’s stock worth $39,000 after acquiring an additional 50 shares in the last quarter. Eastern Bank acquired a new stake in shares of Constellation Brands during the 3rd quarter valued at $39,000. Finally, FSA Wealth Management LLC bought a new stake in shares of Constellation Brands during the 3rd quarter worth $42,000. Institutional investors and hedge funds own 77.34% of the company’s stock.

Constellation Brands Stock Down 8.8 %

The firm has a market capitalization of $36.32 billion, a price-to-earnings ratio of 64.74, a PEG ratio of 1.69 and a beta of 1.75. The company has a current ratio of 1.25, a quick ratio of 0.53 and a debt-to-equity ratio of 1.31. The stock has a fifty day moving average of $232.90 and a 200-day moving average of $242.14.

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.