Constellation Brands’ (STZ) “Buy” Rating Reaffirmed at Jefferies Financial Group
Constellation Brands (NYSE:STZ)‘s stock had its “buy” rating restated by equities research analysts at Jefferies Financial Group in a research note issued on Friday. They currently have a $289.00 price target on the stock. Jefferies Financial Group’s target price would suggest a potential upside of 53.23% from the company’s previous close.
The analysts wrote, “STZ remains our top large cap growth idea following our meeting/site visit w/ cannabis industry leader, Canopy Growth (< 40% owned by STZ)."”
A number of other equities research analysts have also weighed in on the stock. Royal Bank of Canada boosted their target price on shares of Constellation Brands to $300.00 and gave the stock an “outperform” rating in a report on Wednesday, August 22nd. SunTrust Banks lowered shares of Constellation Brands from a “buy” rating to a “hold” rating and reduced their target price for the stock from $260.00 to $220.00 in a report on Monday, September 10th. Zacks Investment Research raised shares of Constellation Brands from a “sell” rating to a “hold” rating in a report on Thursday, September 20th. Cann reduced their target price on shares of Constellation Brands from $234.00 to $226.00 and set a “buy” rating on the stock in a report on Thursday, August 16th. Finally, Guggenheim started coverage on shares of Constellation Brands in a report on Thursday, September 13th. They set a “sell” rating and a $177.00 target price on the stock. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, sixteen have given a buy rating and one has issued a strong buy rating to the stock. The company has a consensus rating of “Buy” and an average price target 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, beating the consensus estimate of $2.60 by $0.27. The company had revenue of $2.30 billion for the quarter, compared to analyst estimates of $2.25 billion. Constellation Brands had a net margin of 38.18% and a return on equity of 18.63%. The firm’s revenue was up 10.1% on a year-over-year basis. During the same period in the previous year, the firm posted $2.47 EPS. As a group, 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 the business’s stock in a transaction on Friday, October 19th. The shares were sold at an average price of $223.83, for a total transaction of $989,104.77. Following the transaction, the vice president now owns 8,499 shares in the company, valued at approximately $1,902,331.17. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Robert Sands sold 151,060 shares of the business’s stock in a transaction on Monday, October 22nd. The shares were sold at an average price of $223.67, for a total transaction of $33,787,590.20. Following the transaction, the chief executive officer now owns 737,607 shares in the company, valued at approximately $164,980,557.69. The disclosure for this sale can be found here. Insiders have sold a total of 578,723 shares of company stock worth $129,438,449 in the last quarter. 15.80% of the stock is owned by corporate insiders.
Several institutional investors have recently added to or reduced their stakes in STZ. Sun Life Financial INC lifted its position in shares of Constellation Brands by 155.3% during the 2nd quarter. Sun Life Financial INC now owns 457 shares of the company’s stock valued at $100,000 after acquiring an additional 278 shares during the period. Atlantic Trust LLC bought a new stake in Constellation Brands during the 2nd quarter valued at $114,000. TLP Group LLC bought a new stake in Constellation Brands during the 3rd quarter valued at $136,000. Truvestments Capital LLC bought a new stake in Constellation Brands during the 3rd quarter valued at $137,000. Finally, Cornerstone Wealth Management LLC bought a new stake in Constellation Brands during the 2nd quarter valued at $140,000. Institutional investors own 72.83% of the company’s stock.
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. 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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