Constellation Brands (NYSE:STZ) Shares Gap Down – Time to Sell?

Constellation Brands, Inc. (NYSE:STZ)’s stock price gapped down before the market opened on Friday . The stock had previously closed at $222.57, but opened at $217.80. Constellation Brands shares last traded at $218.68, with a volume of 289,237 shares.

Analyst Upgrades and Downgrades

A number of research firms have commented on STZ. TD Cowen cut shares of Constellation Brands from a “buy” rating to a “hold” rating and decreased their target price for the company from $300.00 to $270.00 in a research report on Tuesday, October 8th. Wells Fargo & Company decreased their price objective on shares of Constellation Brands from $300.00 to $295.00 and set an “overweight” rating on the stock in a report on Tuesday, November 26th. Bank of America reiterated a “neutral” rating and issued a $255.00 target price (down previously from $300.00) on shares of Constellation Brands in a report on Monday, October 7th. BNP Paribas began coverage on Constellation Brands in a research note on Monday, November 25th. They set a “neutral” rating and a $261.00 price target on the stock. Finally, JPMorgan Chase & Co. dropped their price objective on Constellation Brands from $307.00 to $293.00 and set an “overweight” rating for the company in a research note on Friday, October 4th. Five analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $288.70.

Constellation Brands Trading Down 1.2 %

The firm has a market capitalization of $39.94 billion, a price-to-earnings ratio of 71.19, a PEG ratio of 1.69 and a beta of 1.75. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.53 and a current ratio of 1.25. The company has a 50-day moving average price of $234.48 and a 200-day moving average price of $243.63.

Constellation Brands (NYSE:STZ) last announced its quarterly earnings results on Thursday, October 3rd. The company reported $4.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.08 by $0.24. Constellation Brands had a return on equity of 25.34% and a net margin of 5.29%. The firm had revenue of $2.92 billion during the quarter, compared to the consensus estimate of $2.95 billion. During the same period in the prior year, the company posted $3.70 earnings per share. The firm’s quarterly revenue was up 2.9% compared to the same quarter last year. As a group, research analysts forecast that Constellation Brands, Inc. will post 13.57 EPS for the current fiscal year.

Insider Activity

In related news, CEO William A. Newlands sold 7,426 shares of the company’s stock in a transaction dated Tuesday, October 29th. The stock was sold at an average price of $237.24, for a total value 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 $1,725,683.76. This represents a 50.52 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP James A. Jr. Sabia sold 36,086 shares of Constellation Brands stock in a transaction that occurred on Thursday, November 14th. The stock was sold at an average price of $242.99, for a total value of $8,768,537.14. Following the transaction, the executive vice president now directly owns 16,042 shares in the company, valued at approximately $3,898,045.58. This trade represents a 69.23 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 189,956 shares of company stock worth $46,058,091. Corporate insiders own 12.19% of the company’s stock.

Institutional Trading of Constellation Brands

Institutional investors and hedge funds have recently bought and sold shares of the business. Versant Capital Management Inc increased its stake in Constellation Brands by 887.5% in the fourth quarter. Versant Capital Management Inc now owns 158 shares of the company’s stock valued at $35,000 after purchasing an additional 142 shares during the period. Ashton Thomas Private Wealth LLC purchased a new position in shares of Constellation Brands during the second quarter worth about $36,000. Wellington Shields & Co. LLC increased its position in Constellation Brands by 50.0% in the 2nd quarter. Wellington Shields & Co. LLC now owns 150 shares of the company’s stock valued at $39,000 after acquiring an additional 50 shares during the period. Eastern Bank purchased a new stake in Constellation Brands during the 3rd quarter valued at approximately $39,000. Finally, Denver PWM LLC acquired a new stake in Constellation Brands during the 2nd quarter worth approximately $42,000. Hedge funds and other institutional investors own 77.34% of the company’s stock.

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.