Manning & Napier Reduces Stake in Constellation Brands by 17.3%

Manning & Napier Advisors LLC has decreased its holdings in Constellation Brands Inc (NYSE: STZ) by 17.3% during the third quarter of 2023. This reduction, detailed in the firm’s latest Form 13F filing with the Securities and Exchange Commission (SEC), saw the company sell 4,555 shares, leaving it with a total of 21,700 shares. At the end of the quarter, Manning & Napier’s investment in Constellation Brands was valued at approximately $2.96 million.

Other institutional investors have been active in the stock as well. For instance, Salomon & Ludwin LLC acquired a new stake worth $30,000 in Constellation Brands during the third quarter. Abound Wealth Management significantly expanded its holdings by 341.8%, now owning 243 shares valued at $33,000 after purchasing an additional 188 shares in the same period. Furthermore, Hoey Investments Inc. and Curio Wealth LLC also made new investments, with Curio Wealth increasing its position by an astonishing 29,900% to own 300 shares worth $49,000. Collectively, these activities indicate strong interest in Constellation Brands, which institutional investors now own 77.34% of.

Current Performance and Dividend Announcements

On the trading front, shares of Constellation Brands opened at $156.34 on Thursday. The company has experienced a fifty-two week low of $126.45 and a high of $196.91. Constellation Brands holds a market capitalization of $27.37 billion and reports a price-to-earnings (P/E) ratio of 24.66. It has a P/E/G ratio of 0.45 and a beta of 0.45. Other notable financial metrics include a debt-to-equity ratio of 1.29, a quick ratio of 0.70, and a current ratio of 1.34. The 50-day and 200-day simple moving averages are $138.64 and $148.24, respectively.

In addition to its stock performance, Constellation Brands announced a quarterly dividend of $1.02 per share, scheduled for payment on February 12, 2024. Shareholders of record as of January 29, 2024, will receive this dividend, which equates to an annualized payout of $4.08 and a dividend yield of 2.6%. The company’s payout ratio stands at 64.35%.

Analyst Ratings and Market Outlook

Recent research reports reflect mixed sentiments regarding Constellation Brands. Morgan Stanley adjusted its target price from $176.00 to $160.00, maintaining an “equal weight” rating. Weiss Ratings reiterated a “sell (d+)” rating. In contrast, Citigroup raised its target price from $148.00 to $155.00, while Piper Sandler lowered its estimate from $155.00 to $135.00.

Sanford C. Bernstein has a more optimistic outlook, increasing its price target from $195.00 to $197.00 and assigning an “outperform” rating. Overall, the consensus among analysts suggests a balanced approach, with one analyst rating it as a Strong Buy, twelve as Buy, nine as Hold, and four as Sell. According to data from MarketBeat, the average rating for Constellation Brands stands at “Hold” with a price target of $180.35.

Founded in 1945 as the Canandaigua Wine Company by Marvin Sands, Constellation Brands has evolved into a major player in the beverage industry, producing and marketing a variety of beer, wine, and spirits. The company is particularly well-known for its importation of popular Mexican beers like Corona and Modelo into the U.S. market.