Constellation Brands Inc. [NYSE: STZ] traded at a high on 06/30/21, posting a 1.26 gain after which it closed the day’ session at $233.89. The company report on June 30, 2021 that Constellation Brands Announces Accelerated Stock Buyback.
Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced that it has entered into an accelerated share repurchase (“ASR”) agreement with Goldman Sachs & Co. LLC to repurchase $500.0 million of its Class A common stock (“Common Stock”). Under the ASR agreement, Constellation will receive approximately 1.7 million shares on July 2, 2021, representing approximately 80% of the expected share repurchases under the ASR agreement, based on the company’s June 29, 2021 closing stock price of $230.98. The repurchased shares will become treasury shares.
The specific number of shares to be repurchased in the transaction is generally based upon the volume-weighted-average price of the Common Stock during the term of the ASR agreement, less a discount and is expected to be completed no later than October 2021. The purchase price for shares repurchased in the accelerated share repurchase transaction will be paid primarily with cash on hand and will be completed under the company’s current share repurchase authorization, which currently has approximately $3.4 billion in authorization remaining before giving effect to the ASR.
The results of the trading session contributed to over 2155819 shares changing hands. Over the past one week, the price volatility of Constellation Brands Inc. stands at 1.34% while the volatility over the past one month is 1.28%.
The market cap for STZ stock reached $44.47 billion, with 193.97 million shares outstanding and 161.90 million shares in the current float. Compared to the average trading volume of 1.08M shares, STZ reached a trading volume of 2155819 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Constellation Brands Inc. [STZ]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for STZ shares is $260.90 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on STZ stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Bernstein have made an estimate for Constellation Brands Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on May 25, 2021. While these analysts kept the previous recommendation, Wolfe Research raised their target price to Outperform. The new note on the price target was released on April 13, 2021, representing the official price target for Constellation Brands Inc. stock. Previously, the target price had yet another drop from $219 to $216, while MKM Partners kept a Neutral rating on STZ stock.
The Average True Range (ATR) for Constellation Brands Inc. is set at 3.59, with the Price to Sales ratio for STZ stock in the period of the last 12 months amounting to 5.16. The Price to Book ratio for the last quarter was 3.34, with the Price to Cash per share for the same quarter was set at 2.42. Price to Free Cash Flow for STZ in the course of the last twelve months was 32.53 with Quick ratio for the last quarter at 1.40.
How has STZ stock performed recently?
Constellation Brands Inc. [STZ] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.30. With this latest performance, STZ shares dropped by -1.46% in over the last four-week period, additionally plugging by 7.57% over the last 6 months – not to mention a rise of 33.69% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for STZ stock in for the last two-week period is set at 53.14, with the RSI for the last a single of trading hit 58.54, and the three-weeks RSI is set at 51.31 for Constellation Brands Inc. [STZ]. The present Moving Average for the last 50 days of trading for this stock 235.59, while it was recorded at 229.77 for the last single week of trading, and 216.88 for the last 200 days.
Constellation Brands Inc. [STZ]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Constellation Brands Inc. [STZ] shares currently have an operating margin of +33.19 and a Gross Margin at +51.90. Constellation Brands Inc.’s Net Margin is presently recorded at +23.20.
Return on Total Capital for STZ is now 11.41, given the latest momentum, and Return on Invested Capital for the company is 8.27. Return on Equity for this stock inclined to 15.53, with Return on Assets sitting at 7.34. When it comes to the capital structure of this company, Constellation Brands Inc. [STZ] has a Total Debt to Total Equity ratio set at 80.76. Additionally, STZ Total Debt to Total Capital is recorded at 44.68, with Total Debt to Total Assets ending up at 40.52. Long-Term Debt to Equity for the company is recorded at 80.04, with the Long-Term Debt to Total Capital now at 44.28.
Reflecting on the efficiency of the workforce at the company, Constellation Brands Inc. [STZ] managed to generate an average of $214,839 per employee. Receivables Turnover for the company is 7.48 with a Total Asset Turnover recorded at a value of 0.32.Constellation Brands Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.40 and a Current Ratio set at 2.40.
Earnings analysis for Constellation Brands Inc. [STZ]
With the latest financial reports released by the company, Constellation Brands Inc. posted 2.3/share EPS, while the average EPS was predicted by analysts to be reported at 2.01/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 14.40%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for STZ. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Constellation Brands Inc. go to 9.05%.
Insider trade positions for Constellation Brands Inc. [STZ]
There are presently around $32,585 million, or 83.70% of STZ stock, in the hands of institutional investors. The top three institutional holders of STZ stocks are: VANGUARD GROUP INC with ownership of 12,545,974, which is approximately 1.059% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 11,702,069 shares of the stock with an approximate value of $2.74 billion in STZ stocks shares; and WELLINGTON MANAGEMENT GROUP LLP, currently with $1.72 billion in STZ stock with ownership of nearly 7.736% of the company’s market capitalization.
Positions in Constellation Brands Inc. stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 612 institutional holders increased their position in Constellation Brands Inc. [NYSE:STZ] by around 11,909,600 shares. Additionally, 446 investors decreased positions by around 11,264,316 shares, while 170 investors held positions by with 116,142,764 shares. The mentioned changes placed institutional holdings at 139,316,680 shares, according to the latest SEC report filing. STZ stock had 113 new institutional investments in for a total of 1,927,777 shares, while 79 institutional investors sold positions of 1,683,853 shares during the same period.