On October 1, 2023, Constellation Brands (NYSE:STZ) experienced a decrease in its price target as reported by equities research analysts at Barclays. The target was adjusted from $295.00 to $294.00 in a research report issued to clients and investors.
Barclays’s revised target price suggests a potential upside of 16.85% from the stock’s current price. Despite this adjustment, shares of NYSE STZ opened at $251.61 on Friday. The company currently holds a market cap of $46.13 billion, with a PE ratio of -137.49 and a price-to-earnings-growth ratio of 1.97.
The stock carries a beta of 1.04 and has shown a one-year low of $208.12 and a one-year high of $273.65. An examination of its recent trading patterns reveals that the fifty-day moving average stands at $262.83, while the two-hundred-day moving average rests at $244.27.
To further analyze Constellation Brands’ financial health, we can note that it has a debt-to-equity ratio of 1.23, indicating its level of indebtedness compared to shareholders’ equity. Additionally, the firm maintains a current ratio of 1.14 and a quick ratio of 0.53, reflecting its ability to cover short-term liabilities.
In terms of institutional investment activity, hedge funds and other institutional investors have made recent adjustments to their stakes in the business. AXS Investments LLC purchased an initial position in Constellation Brands during the fourth quarter valued at approximately $26,000.
Moreover, Old North State Trust LLC increased its stake in Constellation Brands by an impressive 3,290% during the first quarter, leading to ownership of 678 shares worth $27,000 after acquiring an additional 658 shares.
Further additions include CVA Family Office LLC, which boosted its position in Constellation Brands by 323.1% during the second quarter. CVA Family Office now owns 110 shares valued at $27,000 after acquiring an additional 84 shares.
TimeScale Financial Inc. also joined in, purchasing a new position in Constellation Brands during the same quarter for about $34,000. Lastly, Resurgent Financial Advisors LLC acquired a new position in Constellation Brands during the fourth quarter worth around $34,000. Currently, institutional investors own approximately 88.99% of the stock.
Looking back at Constellation Brands’ performance, it last reported quarterly earnings on June 30th. The company surpassed analysts’ consensus estimates by posting earnings per share (EPS) of $2.91 for the quarter compared to predictions of $2.83 per share.
With regards to revenue, Constellation Brands generated $2.51 billion during the quarter, outperforming analyst estimates of $2.47 billion. The positive results indicate a return on equity of 22.32% despite a negative net margin of 3.14%.
In comparison to the same period last year when earnings per share stood at $2.66 EPS, Constellation Brands displayed growth with an increase in revenue of 6.4%. Analysts project that Constellation Brands will achieve 11.63 earnings per share for the current fiscal year.
While Barclays lowered the price target for Constellation Brands recently, it is essential to evaluate various factors both internally and externally that may have contributed to this change. Investors should carefully analyze available information and consult with financial advisors before making any investment decisions
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Constellation Brands’ Stock Receives Positive Ratings Despite Insider Trading Concerns
On October 1, 2023, Constellation Brands was the subject of several reports and ratings by various research firms. The company’s stock received a price target increase from $265.00 to $280.00 by Citigroup in a report issued on June 21st. StockNews.com initiated coverage of Constellation Brands on August 17th, giving it a “hold” rating. However, TheStreet downgraded the company’s shares from a “b-” rating to a “c+” rating in a research note released on September 5th.
Truist Financial also weighed in on Constellation Brands, raising their price target from $220.00 to $240.00 and assigning it a “hold” rating in their research note on July 3rd. JPMorgan Chase & Co., meanwhile, increased their price target from $276.00 to $307.00 and gave the stock an “overweight” rating in a note published on September 20th.
With five equities research analysts rating the stock as a hold and sixteen providing it with a buy rating, Constellation Brands has garnered positive attention from the market. Bloomberg.com confirms that there is a consensus among analysts that it is a “Moderate Buy,” with an average price target of $274.00.
While the company has attracted significant attention due to its stock performance, recent news regarding insider trading has also made headlines. Chief Financial Officer (CFO) Garth Hankinson conducted two separate transactions involving Constellation Brands’ shares on Thursday, July 20th. In one transaction, he sold 1,550 shares at an average price of $267.96 per share for a total value of $415,338.00. Following this sale, Hankinson now directly owns 9,491 shares in the company with an approximate value of $2,543,208.36.
The details of these transactions were disclosed through a legal filing with the Securities & Exchange Commission (SEC), which can be accessed via a provided hyperlink. CFO Hankinson’s actions were not unique, as another transaction involving the same number of shares took place on the same day, at the same average price per share. After this second sale, Hankinson’s direct ownership of company shares remains at 9,491, valued at $2,543,208.36.
Furthermore, Executive Vice President Robert Lee Hanson sold 12,299 shares of Constellation Brands stock on July 20th for an average price of $268.10 per share. This transaction amounted to a total value of $3,297,361.90. Following the sale, Hanson now directly owns 11,862 shares valued at $3,180,202.20.
Throughout the past 90 days leading up to these transactions by executives like Hankinson and Hanson, insiders have collectively sold 100,819 shares of Constellation Brands’ stock worth $27,054,755. It is worth noting that corporate insiders currently own approximately 16.19% of the company’s stock.
In conclusion, Constellation Brands has received positive attention from research firms with its upgraded price targets and buy ratings. However, recent news regarding insider trading by executives raises questions about their confidence in the company’s future performance. Investors may want to consider these factors when making decisions regarding Constellation Brands’ stock moving forward.
