Short Interest in Constellation Brands, Inc. (NYSE:STZ) Increases by 58.3%

Constellation Brands, Inc. (NYSE:STZ) experienced a notable rise in short interest during February. As of February 28th, the total short interest reached 4,020,000 shares, which marks a significant increase of 58.3% compared to the 2,540,000 shares reported on February 13th. This indicates that approximately 2.9% of the company's total shares are currently sold short. Given the average daily trading volume of 2,620,000 shares, the days-to-cover ratio stands at 1.5 days.

Insider Transactions

In related news, Director William T. Giles acquired 1,000 shares of Constellation Brands stock on January 17th. The shares were purchased at an average price of $186.39 each, resulting in a total transaction value of $186,390. Following this purchase, the director's holdings increased to 1,463 shares, valued at around $272,688.57, representing a substantial increase of 215.98% in their position. This transaction has been disclosed in a filing with the Securities and Exchange Commission.

Institutional Investments

Several hedge funds and institutional investors have made adjustments to their positions in Constellation Brands recently. Metis Global Partners LLC raised its stake by 0.8% during the third quarter, now holding 5,570 shares valued at $1,435,000 after acquiring an additional 46 shares. Tokio Marine Asset Management Co. Ltd. also increased its holdings by 1.3%, securing 4,205 shares worth $1,084,000 after buying 52 more shares. Similarly, KCM Investment Advisors LLC and Allworth Financial LP reported slight increases in their shares, with KCM holding 3,382 shares valued at $872,000 and Allworth owning 7,357 shares worth $1,626,000. Collectively, hedge funds and institutional investors hold about 77.34% of the stock.

Analyst Ratings and Price Targets

Constellation Brands has drawn attention from various analysts who have issued new ratings and price targets. Needham & Company LLC reaffirmed a "buy" rating and set a price target of $240.00 on January 27th. In contrast, Truist Financial revised their target downward to $190.00 and maintained a "hold" rating on January 14th. Piper Sandler and UBS Group also decreased their price targets to $200.00 and $223.00, respectively. Currently, the stock carries a consensus rating of "Hold" with an average price target of $252.81, reflecting mixed sentiment among analysts.

Stock Performance Overview

On February 21st, shares of Constellation Brands traded down slightly, reaching $181.46 during midday trading. The total shares exchanged during this time were approximately 1,650,539, a noticeable increase compared to the average volume of 1,539,634. The company’s fifty-day moving average price is $180.58, while the 200-day moving average stands at $219.23. With a debt-to-equity ratio of 1.26, the company's financial health shows a quick ratio of 0.46 and a current ratio of 1.10. Constellation Brands has recorded a 12-month low of $160.46 and a high of $274.87, boasting a market capitalization of $32.79 billion and a price-to-earnings ratio of 48.78.

Recent Earnings and Dividend Declaration

Constellation Brands reported its latest earnings results on January 10th, revealing an earnings per share (EPS) of $3.25 for the quarter, which fell short of the consensus estimate of $3.33 by $0.08. The company had a return on equity of 26.55% and a net margin of 6.27%. The quarterly revenue was recorded at $2.46 billion, below analysts' expectations of $2.53 billion, and reflects a year-over-year decline of 0.3%. For the current year, analysts project an EPS of 13.5.

The company also announced a quarterly dividend of $1.01 per share, distributed to investors on February 21st. This translates to an annualized dividend yield of 2.23%, with an ex-dividend date of February 7th. The dividend payout ratio currently stands at 108.60%.

About Constellation Brands

Constellation Brands, Inc., along with its subsidiaries, is involved in the production, import, marketing, and sale of beer, wine, and spirits across multiple countries, including the United States, Canada, Mexico, New Zealand, and Italy. The company boasts a wide array of beer brands including Corona and Modelo.

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