Morgan Stanley Cuts Constellation Brands (NYSE:STZ) Price Target to $208.00

Constellation Brands (NYSE:STZ) had its price objective decreased by Morgan Stanley from $214.00 to $208.00 in a research note released on Monday, January 6th, BenzingaRatingsTable reports. Morgan Stanley currently has an equal weight rating on the stock.

STZ has been the topic of a number of other research reports. HSBC set a $235.00 target price on shares of Constellation Brands and gave the stock a buy rating in a report on Tuesday, September 17th. Zacks Investment Research raised shares of Constellation Brands from a sell rating to a hold rating and set a $215.00 target price on the stock in a report on Monday, September 23rd. Credit Suisse Group boosted their price target on shares of Constellation Brands from $228.00 to $233.00 and gave the stock an outperform rating in a research note on Friday, December 13th. OTR Global raised shares of Constellation Brands to a positive rating in a research note on Friday, September 27th. Finally, Deutsche Bank cut their price target on shares of Constellation Brands from $197.00 to $196.00 and set a hold rating for the company in a research note on Friday, December 13th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and eleven have assigned a buy rating to the company’s stock. The stock has a consensus rating of Hold and an average target price of $226.83.

Shares of NYSE STZ traded up $0.12 during mid-day trading on Monday, reaching $190.97. 151,130 shares of the company’s stock traded hands, compared to its average volume of 1,328,166. The stock has a market cap of $36.57 billion, a P/E ratio of 20.58, a PEG ratio of 2.64 and a beta of 0.64. The business has a 50-day simple moving average of $186.55 and a 200 day simple moving average of $194.36. Constellation Brands has a 1-year low of $157.14 and a 1-year high of $214.48. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.41 and a quick ratio of 0.86.

Constellation Brands (NYSE:STZ) last released its quarterly earnings results on Wednesday, January 8th. The company reported $2.14 earnings per share for the quarter, topping the consensus estimate of $1.84 by $0.30. Constellation Brands had a net margin of 9.21% and a return on equity of 14.15%. The business had revenue of $2.18 billion for the quarter, compared to analysts’ expectations of $1.95 billion. During the same period in the previous year, the company earned $2.37 earnings per share. The firm’s revenue for the quarter was up 1.0% compared to the same quarter last year. Equities research analysts anticipate that Constellation Brands will post 8.83 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 25th. Shareholders of record on Tuesday, February 11th will be issued a $0.75 dividend. The ex-dividend date of this dividend is Monday, February 10th. This represents a $3.00 annualized dividend and a yield of 1.57%. Constellation Brands’s dividend payout ratio (DPR) is presently 32.33%.

In related news, CFO David Eric Klein sold 36,488 shares of the stock in a transaction dated Thursday, January 9th. The shares were sold at an average price of $195.48, for a total value of $7,132,674.24. Following the completion of the transaction, the chief financial officer now directly owns 45,380 shares in the company, valued at approximately $8,870,882.40. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Robert Lee Hanson sold 4,056 shares of the stock in a transaction dated Thursday, January 9th. The stock was sold at an average price of $195.00, for a total transaction of $790,920.00. Following the completion of the transaction, the executive vice president now owns 8,591 shares of the company’s stock, valued at $1,675,245. The disclosure for this sale can be found here. 15.86% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently made changes to their positions in STZ. Maverick Capital Ltd. boosted its holdings in shares of Constellation Brands by 22.0% during the 2nd quarter. Maverick Capital Ltd. now owns 24,420 shares of the company’s stock valued at $4,809,000 after acquiring an additional 4,410 shares during the last quarter. Cypress Capital Management LLC boosted its holdings in shares of Constellation Brands by 2.1% during the 3rd quarter. Cypress Capital Management LLC now owns 9,945 shares of the company’s stock valued at $2,061,000 after acquiring an additional 205 shares during the last quarter. Private Advisor Group LLC boosted its holdings in shares of Constellation Brands by 26.0% during the 2nd quarter. Private Advisor Group LLC now owns 22,416 shares of the company’s stock valued at $4,415,000 after acquiring an additional 4,625 shares during the last quarter. Chesapeake Wealth Management boosted its holdings in shares of Constellation Brands by 19.0% during the 3rd quarter. Chesapeake Wealth Management now owns 1,343 shares of the company’s stock valued at $278,000 after acquiring an additional 214 shares during the last quarter. Finally, Ossiam boosted its holdings in shares of Constellation Brands by 150.0% in the second quarter. Ossiam now owns 7,454 shares of the company’s stock worth $1,468,000 after buying an additional 4,472 shares during the last quarter. 71.99% of the stock is currently owned by institutional investors.

Constellation Brands Company Profile

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. It provides beer primarily under the Corona Extra, Corona Light, Corona Premier, Corona Familiar Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Four Corners, and Ballast Point brands.

Further Reading: Cash Flow

Analyst Recommendations for Constellation Brands (NYSE:STZ)

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