TD Cowen has recently reduced Constellation Brands, Inc. (STZ) stock to Hold rating, as announced on October 8, 2024, according to Finviz. Earlier, on October 7, 2024, BofA Securities had reduced the stock from a Buy to Neutral, setting a price target of $255 for STZ stock. UBS also reiterated Buy rating with a price target of $320. Additionally, ROTH MKM reiterated Buy rating on July 5, 2024, with a target price of $303. JP Morgan analysts, in their report published on July 5, 2024, also reiterated Overweight rating and set a price target of $320 for Constellation Brands, Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Constellation Brands, Inc. (STZ) Stock Trading Recap
On Monday, Constellation Brands, Inc. (STZ) stock saw a decline, ending the day at $239.21 which represents a decrease of $-2.31 or -0.96% from the prior close of $241.52. The stock opened at $239.59 and touched a low of $238.19 during the day, reaching a high of $241.02. The volume of shares traded was 1.20 million exceeding the average volume of 1.14 million.
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STZ Stock Performance and Moving Averages
In recent trading, Constellation Brands, Inc. (STZ) stock price has shown some volatility, fluctuating -2.65% over the last five trades and -3.58% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -7.90%, and it has plunged by -2.75% in the previous three months. Currently, STZ is trading at -3.13%, -2.95%, and -5.15% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, STZ, a Consumer Defensive sector stock, is trading -12.97% below its 52-week high but remains 5.08% above its 52-week low. The Average True Range (ATR) (14 days) of 4.39 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Constellation Brands, Inc.’s Profitability and Valuation Ratios
Constellation Brands, Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 33.75% and a profit margin of 5.69%, with a gross margin of -7.90%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Constellation Brands, Inc.’s market capitalization stands at $43.43 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 76.9, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 15.79. Additionally, the Price-to-Sales Ratio is 4.26, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 5.52, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 16.30% of Constellation Brands, Inc. (STZ)’s shares, while financial institutions hold 81.79%.
Notable insider trades include SANDS ROBERT, Director at Constellation Brands, Inc. (STZ), who sold 119274 shares on Oct 16 ’24, at $242.37 each, totaling $28.91 million. On Oct 16 ’24, Robert Sands Master Trust, 10% Owner, sold 119274 shares for $242.37 each, amounting to $28.91 million. Additionally, on Oct 14 ’24, Glaetzer Samuel J sold 1510 shares at $245.57 each, generating $0.37 million.
