Constellation Brands (NYSE:STZ) Shares Gap Up After Earnings Beat

Constellation Brands, Inc. (NYSE:STZ)’s stock price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $177.80, but opened at $188.21. Constellation Brands shares last traded at $196.94, with a volume of 6,089,547 shares changing hands.

The company reported $2.21 earnings per share for the quarter, topping the consensus estimate of $2.06 by $0.15. Constellation Brands had a net margin of 38.67% and a return on equity of 15.63%. The company had revenue of $2.28 billion for the quarter, compared to analyst estimates of $2.07 billion. During the same period in the prior year, the business posted $2.20 earnings per share. The firm’s revenue for the quarter was up 11.5% compared to the same quarter last year.

Several research analysts have weighed in on the stock. Zacks Investment Research upgraded shares of Constellation Brands from a “sell” rating to a “hold” rating in a research report on Wednesday, April 24th. ValuEngine upgraded shares of Constellation Brands from a “sell” rating to a “hold” rating in a research report on Thursday, April 4th. Bank of America set a $221.00 target price on shares of Constellation Brands and gave the stock a “buy” rating in a research report on Monday, June 24th. Macquarie set a $183.00 target price on shares of Constellation Brands and gave the stock a “hold” rating in a research report on Friday, April 5th. Finally, Deutsche Bank lowered shares of Constellation Brands from a “buy” rating to a “hold” rating and upped their target price for the stock from $191.00 to $194.00 in a research report on Friday, April 5th. Eleven analysts have rated the stock with a hold rating, fifteen have issued a buy rating and two have assigned a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and an average target price of $224.33.

In other news, VP Thomas Michael Kane sold 3,071 shares of the stock in a transaction that occurred on Friday, April 5th. The shares were sold at an average price of $190.08, for a total value of $583,735.68. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP David Eric Klein sold 25,980 shares of the stock in a transaction that occurred on Thursday, April 18th. The shares were sold at an average price of $198.66, for a total transaction of $5,161,186.80. Following the completion of the sale, the executive vice president now owns 69,852 shares in the company, valued at $13,876,798.32. The disclosure for this sale can be found here. Insiders sold 80,921 shares of company stock worth $16,404,441 over the last quarter. Company insiders own 15.86% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in the company. Versant Capital Management Inc boosted its position in Constellation Brands by 210.9% during the first quarter. Versant Capital Management Inc now owns 143 shares of the company’s stock worth $25,000 after acquiring an additional 97 shares during the last quarter. Mosaic Family Wealth LLC acquired a new stake in Constellation Brands during the first quarter worth approximately $27,000. Bay Harbor Wealth Management LLC acquired a new stake in Constellation Brands during the first quarter worth approximately $33,000. Global Retirement Partners LLC boosted its position in Constellation Brands by 74.4% during the first quarter. Global Retirement Partners LLC now owns 211 shares of the company’s stock worth $37,000 after acquiring an additional 90 shares during the last quarter. Finally, Meridian Wealth Management LLC acquired a new stake in Constellation Brands during the first quarter worth approximately $39,000. Institutional investors and hedge funds own 70.74% of the company’s stock.

The stock has a 50-day moving average of $192.17. The stock has a market cap of $35.40 billion, a PE ratio of 21.22, a price-to-earnings-growth ratio of 2.60 and a beta of 0.68. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.49 and a current ratio of 1.16.

Constellation Brands Company Profile (NYSE:STZ)

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.

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