Goldman Sachs Maintains Constellation Brands Buy Recommendation

Fintel reports that on May 31, 2023, Goldman Sachs maintained coverage of Constellation Brands Inc – (NYSE:STZ) with a Buy recommendation.

Analyst Price Forecast Suggests 11.46% Upside

As of May 10, 2023, the average one-year price target for Constellation Brands Inc – is 264.23. The forecasts range from a low of 218.16 to a high of $309.75. The average price target represents an increase of 11.46% from its latest reported closing price of 237.06.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Constellation Brands Inc – is 10,253MM, an increase of 8.47%. The projected annual non-GAAP EPS is 12.74.

Constellation Brands Inc – Declares $0.89 Dividend

On April 5, 2023 the company declared a regular quarterly dividend of $0.89 per share ($3.56 annualized). Shareholders of record as of May 4, 2023 received the payment on May 18, 2023. Previously, the company paid $0.80 per share.

At the current share price of $237.06 / share, the stock’s dividend yield is 1.50%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.48%, the lowest has been 1.20%, and the highest has been 2.84%. The standard deviation of yields is 0.20 (n=237).

The current dividend yield is 0.09 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is -9.19. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.19%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 2053 funds or institutions reporting positions in Constellation Brands Inc -. This is a decrease of 44 owner(s) or 2.10% in the last quarter. Average portfolio weight of all funds dedicated to STZ is 0.35%, a decrease of 14.90%. Total shares owned by institutions increased in the last three months by 0.86% to 166,052K shares. The put/call ratio of STZ is 0.70, indicating a bullish outlook.

What are Other Shareholders Doing?

Price T Rowe Associates holds 7,891K shares representing 4.31% ownership of the company. In it’s prior filing, the firm reported owning 3,929K shares, representing an increase of 50.21%. The firm increased its portfolio allocation in STZ by 82.17% over the last quarter.

Capital World Investors holds 6,740K shares representing 3.68% ownership of the company. In it’s prior filing, the firm reported owning 6,678K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in STZ by 4.60% over the last quarter.

Capital International Investors holds 6,488K shares representing 3.54% ownership of the company. In it’s prior filing, the firm reported owning 3,120K shares, representing an increase of 51.90%. The firm increased its portfolio allocation in STZ by 94.23% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 4,853K shares representing 2.65% ownership of the company. In it’s prior filing, the firm reported owning 4,764K shares, representing an increase of 1.82%. The firm decreased its portfolio allocation in STZ by 8.33% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 3,788K shares representing 2.07% ownership of the company. In it’s prior filing, the firm reported owning 3,753K shares, representing an increase of 0.94%. The firm decreased its portfolio allocation in STZ by 8.74% over the last quarter.

Constellation Brands Background Information
(This description is provided by the company.)

Constellation Brands mission is to build brands that people love because it believes sharing a toast, unwinding after a day, celebrating milestones, and helping people connect, are Worth Reaching For. It’s worth its dedication, hard work, and the bold calculated risks it takes to deliver more for its consumers, trade partners, shareholders, and communities in which it lives and works. It’s what has made us one of the fastest-growing large CPG companies in the U.S. at retail, and it drives its pursuit to deliver what’s next. Today, it is a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Every day, people reach for its high-end, iconic imported beer brands such as Corona Extra, Corona Light, Corona Premier, Modelo Especial, Modelo Negra, and Pacifico, and its high-quality premium wine and spirits brands, including the Robert Mondavi brand family, Kim Crawford, Meiomi, The Prisoner brand family, SVEDKA Vodka, Casa Noble Tequila, and High West Whiskey. But it won’t stop here. Its visionary leadership team and passionate employees from barrel room to boardroom are reaching for the next level, to explore the boundaries of the beverage alcohol industry and beyond.

Key filings for this company: