South Dakota Investment Council Increases Stake in Constellation Brands

The South Dakota Investment Council has raised its investment in Constellation Brands Inc (NYSE: STZ) by 1.7%, bringing its total holdings to 101,125 shares as reported in a recent filing with the Securities and Exchange Commission. Following the acquisition of an additional 1,731 shares during the second quarter, the council’s stake in Constellation Brands is now valued at approximately $16.45 million.

Several other hedge funds have also adjusted their positions in Constellation Brands. Gilbert & Cook Inc. increased its holdings by 2.6%, now owning 2,385 shares worth $388,000 after acquiring an additional 60 shares. World Investment Advisors raised its stake by 1.7% in the first quarter, now holding 3,801 shares valued at $698,000. V Square Quantitative Management LLC saw a growth of 3.8% in its position, bringing its total to 1,682 shares valued at $274,000. Additionally, Oak Asset Management LLC increased its position by 0.4%, reaching 18,281 shares worth $2.97 million, and Geneos Wealth Management Inc. boosted its stake by 9.9%, holding 813 shares valued at $149,000.

Currently, institutional investors control 77.34% of Constellation Brands’ stock, reflecting significant confidence in the company.

Current Stock Performance and Financial Indicators

On Monday, the stock of Constellation Brands opened at $131.40, with a market capitalization of $23 billion. The company reported a price-to-earnings (P/E) ratio of 19.18 and a price-to-earnings-growth (PEG) ratio of 0.39. The stock has experienced fluctuations over the past year, marking a low of $127.00 and a high of $245.31. Financial ratios indicate a debt-to-equity ratio of 1.26, a current ratio of 1.08, and a quick ratio of 0.54, with a 50-day simple moving average at $141.49 and a 200-day simple moving average at $163.31.

In a recent announcement, Constellation Brands declared a quarterly dividend of $1.02 per share, set to be paid on November 13, 2023. Shareholders recorded on October 30, 2023 will be eligible for this dividend, which translates to an annualized dividend of $4.08 and a yield of 3.1%. The company currently has a dividend payout ratio (DPR) of 59.56%.

Analyst Ratings and Market Outlook

Recent assessments from equity research analysts present a mixed outlook for Constellation Brands. Notably, BNP Paribas downgraded the company’s rating from “hold” to “strong sell” in a note on September 3, 2023. Citigroup adjusted its target price from $155.00 to $145.00 while maintaining a “neutral” rating. Furthermore, Sanford C. Bernstein reduced its target price from $225.00 to $195.00, classifying the stock as “outperform.”

Other analysts, such as Bank of America, decreased their target from $150.00 to $142.00 and assigned an “underperform” rating. Despite these adjustments, one analyst maintains a “Strong Buy” rating, while thirteen analysts recommend “Buy,” ten suggest “Hold,” and four advise “Sell.” According to MarketBeat.com, Constellation Brands has a consensus rating of “Hold” and an average target price of $186.44.

Constellation Brands, Inc. operates in the alcoholic beverage sector, producing and marketing beer, wine, and spirits across multiple countries, including the United States, Canada, Mexico, New Zealand, and Italy. The company’s prominent beer brands include Corona Extra, Modelo Especial, and Pacifico, among others.

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