Is Constellation Brands Inc (NYSE: STZ) No Longer A Good Investment?

After Hours

After-hours and pre-market trading may carry slightly higher risks than regular market hours. As issuers often announce important financial information outside regular trading hours, extended-hours trading may result in wider spreads for a particular security. That is because extended-hours trading may result in lower liquidity and higher volatility. Most recently, Yahoo Finance reported about the stock as it publicized that Constellation Brands Announces Election of Christopher J. Baldwin as New Independent Board Chair.

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Stocks Info

STZ belongs to the Consumer Defensive sector of the NYSE while operating in the Beverages – Wineries & Distilleries industry. The current market capitalization of Constellation Brands Inc is $45.43B. A total of 1.94 million shares were traded on the day, compared to an average of 1.13M shares.

Insider Activity

Investors also take into account insider trades in predicting how the stock will perform in the future. During the recent three months, STZ has seen 0 BUY and 0 SELL insider trades, representing the acquisition of 0 and the disposition of 0 shares. Over the last 12 months, there were 31 BUYs and 46 SELLs from insiders. Insiders purchased 99,612 shares during that period but sold 14,673,336.

In the most recent transaction, Sands Family Foundation sold 54,461 shares of STZ for 250.92 per share on Jan 09. After the transaction, the Member of 10% owner group now owns 0 company shares. In a previous transaction on Jan 08, Sands Family Foundation sold 354,616 shares at 250.26 per share. STZ shares that Member of 10% owner group owns now total 54,461.

Among the insiders who sold shares, Sands Family Foundation disposed of 102,152 shares on Nov 08 at a per-share price of $241.84. This resulted in the Member of 10% owner group holding 409,077 shares of STZ after the transaction. In another insider transaction, Sands Family Foundation sold 170,563 shares at $242.76 per share on Nov 07. Company shares held by the Member of 10% owner group now total 511,229.

Dividend

Paying dividends generates immediate cash flow for investors and indicates a positive outlook for the company. Constellation Brands Inc pays an annual dividend of $3.56, resulting in a dividend yield of 1.43%, and it has a price to earnings (P/E) ratio of 29.38. STZ’s most recent ex-dividend date was 2/7/2024 when it declared a $0.89 quarterly dividend that was paid in cash on 2/22/2024. Previously, the company paid the dividend on 11/17/2023 with an ex-dividend date of 11/2/2023. The STZ stock dividend was $0.89 per share in cash.

While price targets are rarely accurate, they tend to exert some kind of influence from time to time and are often taken into account by investors. According to analysts who have offered 12-month price targets for STZ in the last 3 months, the mean price target is $293.09 with high estimates of $325.00 and low estimates of $250.00. In terms of 52-week highs and lows, STZ has a high of $273.65 and a low of $210.15.

As of this writing, STZ has an earnings estimate of $2.09 per share for the current quarter. EPS was calculated based on a consensus of 14 estimates, with a high estimate of $2.17 per share and a lower estimate of $1.97. The company reported an EPS of $3.7 in the last quarter, which was 10.10% higher than expectations of $3.36.

Balance Sheet Annually/Quarterly

An organization’s balance sheet depicts the assets and liabilities it has, as well as the amount of equity invested. Investors can measure a company’s prospects by calculating its financial ratios using this information. STZ’s latest balance sheet shows that the firm has $199.40M in Cash & Short Term Investments as of fiscal 2022. There were $10.95B in debt and $2.70B in liabilities at the time. Its Book Value Per Share was $51.81, while its Total Shareholder’s Equity was $12.05B.

Analysts Opinion

There is a slight risk associated with trading before and after the market open. Due to lower liquidity and higher volatility, extended-hours trading may result in wider spreads on particular security due to the release of critical financial information after regular trading hours. Currently, 0 analysts are providing their opinions on the stock. On a scale of 1 to 5, with 1 being Sell and 5 being Buy, the average analyst rating for STZ is Buy with a score of 4.63.

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