Short Interest in Constellation Brands, Inc. (NYSE:STZ) Sees Major Surge of 58.3%

Constellation Brands, Inc. (NYSE:STZ) experienced a noticeable rise in short interest during February. As of February 28th, the short interest reached a total of 4,020,000 shares, marking an increase of 58.3% since February 13th when it stood at 2,540,000 shares. Currently, about 2.9% of the company’s total shares are sold short. With an average daily trading volume of 2,620,000 shares, the short-interest ratio has become approximately 1.5 days.

Insider Trading Activity

In related news about Constellation Brands, Director William T. Giles acquired 1,000 shares of the company's stock on Friday, January 17th. These shares were bought at an average cost of $186.39 each, amounting to a total investment of $186,390. This acquisition increased his total holdings to 1,463 shares, which have an estimated value of roughly $272,688.57, representing a substantial gain of 215.98%. This share purchase was formally disclosed in a report to the Securities and Exchange Commission, accessible on the SEC's website. Currently, company insiders hold about 12.19% of the stock.

Institutional Investor Actions

Several hedge funds and institutional investors have recently adjusted their stakes in Constellation Brands. For instance, Metis Global Partners LLC increased its holdings by 0.8% during the third quarter, owning now 5,570 shares valued at $1,435,000 after acquiring an additional 46 shares. Likewise, Tokio Marine Asset Management Co. Ltd. raised its stake by 1.3% in the same quarter, owning 4,205 shares worth $1,084,000 following the purchase of 52 extra shares. Other notable adjustments include KCM Investment Advisors LLC and Allworth Financial LP, which increased their stakes by 1.7% and 0.8% respectively during the same periods. Notably, hedge funds and institutional investors collectively possess around 77.34% of the total shares in Constellation Brands.

New Analyst Price Projections

Recent reports from several research analysts have provided updated price targets for Constellation Brands. Needham & Company LLC reaffirmed a "buy" rating while setting a target of $240.00 per share on January 27th. On the contrary, Truist Financial revised their target down to $190.00 from $255.00, maintaining a "hold" rating. Similarly, Piper Sandler lowered their outlook from an "overweight" to a "neutral" rating, adjusting the target price from $245.00 to $200.00. UBS Group also decreased its target price from $265.00 to $223.00, while JPMorgan Chase & Co. kept a "neutral" rating with a target of $203.00, down from $262.00. The consensus among analysts includes ten hold ratings, eleven buy ratings, and one sell rating, resulting in an average recommendation of "hold" and a target price of $252.81.

Constellation Brands Stock Performance

As of the last trading session, Constellation Brands' stock saw a slight decline, dropping $0.13 to reach $181.46, with 1,650,539 shares changing hands compared to the usual trading volume of 1,539,634 shares. The stock’s fifty-day moving average stands at $180.58 while its 200-day moving average is $219.23. Its market capitalization is currently $32.79 billion, and it has experienced a twelve-month low of $160.46 and a high of $274.87. The company’s financial metrics include a price-to-earnings ratio of 48.78 and a return on equity of 26.55%.

Dividend Announcement

Recently, Constellation Brands declared a quarterly dividend of $1.01, which was disbursed on February 21st to shareholders recorded as of February 7th. This annualizes to $4.04 per share, yielding a dividend yield of 2.23%. The company’s current dividend payout ratio stands at 108.60%.

About Constellation Brands

Constellation Brands, Inc. is involved in the production, importation, marketing, and sale of beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company is well-known for its beer products, which include brands such as Corona Extra, Modelo Especial, and Pacifico.

Constellation, Stocks, Investing