Q&A: Constellation Brands new CEO Bill Newlands talks Corona, wine and weed

Q&A: Constellation Brands\ new CEO Bill Newlands talks Corona, wine and weed

Constellation Brands (STZ) Stock Mix Thrust in Focus on Volatility Analysis

Smith Graham & Co. Investment Advisors LP trimmed its position in shares of Constellation Brands, Inc. (NYSE:STZ) by 3.7% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 17,868 shares of the company’s stock after selling 690 shares during the period. Smith Graham & Co. Investment Advisors LP’s holdings in Constellation Brands were worth $3,853,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. Sun Life Financial INC grew its stake in shares of Constellation Brands by 155.3% in the 2nd quarter. Sun Life Financial INC now owns 457 shares of the company’s stock worth $100,000 after buying an additional 278 shares in the last quarter. Clarus Wealth Advisors purchased a new position in shares of Constellation Brands during the 2nd quarter worth about $111,000. Atlantic Trust LLC purchased a new position in shares of Constellation Brands during the 2nd quarter worth about $114,000. Benjamin F. Edwards & Company Inc. boosted its stake in shares of Constellation Brands by 227.3% during the 2nd quarter. Benjamin F. Edwards & Company Inc. now owns 527 shares of the company’s stock worth $115,000 after purchasing an additional 366 shares during the period. Finally, Stelac Advisory Services LLC purchased a new position in shares of Constellation Brands during the 2nd quarter worth about $125,000. Hedge funds and other institutional investors own 73.90% of the company’s stock.

In other news, Chairman Richard Sands sold 148,773 shares of the company’s stock in a transaction on Monday, October 22nd. The shares were sold at an average price of $223.69, for a total value of $33,279,032.37. Following the sale, the chairman now directly owns 346,525 shares of the company’s stock, valued at approximately $77,514,177.25. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Thomas Michael Kane sold 4,419 shares of the company’s stock in a transaction on Friday, October 19th. The shares were sold at an average price of $223.83, for a total transaction of $989,104.77. Following the completion of the sale, the vice president now directly owns 8,499 shares in the company, valued at $1,902,331.17. The disclosure for this sale can be found here. Insiders have sold a total of 578,723 shares of company stock worth $129,438,449 in the last 90 days. 15.80% of the stock is currently owned by company insiders.

A number of research firms recently commented on STZ. ValuEngine cut shares of Constellation Brands from a “buy” rating to a “hold” rating in a research note on Tuesday, October 23rd. Zacks Investment Research raised shares of Constellation Brands from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 16th. Macquarie set a $245.00 price target on shares of Constellation Brands and gave the stock a “buy” rating in a research note on Friday, October 5th. Bank of America dropped their price target on shares of Constellation Brands from $250.00 to $230.00 and set a “buy” rating for the company in a research note on Thursday, August 16th. Finally, Morgan Stanley dropped their price target on shares of Constellation Brands from $258.00 to $251.00 and set a “buy” rating for the company in a research note on Thursday, September 27th. Two analysts have rated the stock with a sell rating, seven have issued a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the company. The company has an average rating of “Buy” and a consensus price target of $246.96.

Shares of NYSE STZ traded down $1.00 during trading hours on Thursday, hitting $205.75. 40,482 shares of the stock were exchanged, compared to its average volume of 2,240,379. The company has a quick ratio of 0.76, a current ratio of 1.66 and a debt-to-equity ratio of 0.80. The firm has a market cap of $38.65 billion, a PE ratio of 23.63, a price-to-earnings-growth ratio of 1.97 and a beta of 0.08. Constellation Brands, Inc. has a 12 month low of $196.26 and a 12 month high of $236.62.

Constellation Brands (NYSE:STZ) last posted its quarterly earnings data on Thursday, October 4th. The company reported $2.87 EPS for the quarter, topping the consensus estimate of $2.60 by $0.27. Constellation Brands had a net margin of 38.18% and a return on equity of 18.63%. The firm had revenue of $2.30 billion during the quarter, compared to analyst estimates of $2.25 billion. During the same quarter in the previous year, the business posted $2.47 EPS. Constellation Brands’s revenue was up 10.1% on a year-over-year basis. On average, equities research analysts anticipate that Constellation Brands, Inc. will post 9.43 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 20th. Shareholders of record on Tuesday, November 6th will be paid a dividend of $0.74 per share. The ex-dividend date is Monday, November 5th. This represents a $2.96 dividend on an annualized basis and a yield of 1.44%. Constellation Brands’s payout ratio is 33.94%.

Constellation Brands, Inc, together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. It provides beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands.

Watching the technical levels for Constellation Brands Inc (STZ), we have spotted that the SuperTrend line is currently sitting above recent share price levels. According to the signal, this may point to the stock entering buy territory.

Some investors may be looking to trade the trend and capitalize on strong current performers. Other investors may look to take a contrarian approach. This can involve looking for names that have been overlooked by the crowd. There are many different contrarian approaches that investors may choose to use. Going against the crowd may require a lot more homework and confidence. There may be hidden gems out there, but is may be wise to investigate why nobody else seems to want to get into the name. Finding that perfect strategy may take a lot of study and dedication. Taking shortcuts in the market can have severe negative effects on the long-term health of the portfolio. 

Constellation Brands Inc (STZ)’s Williams Percent Range or 14 day Williams %R presently is at -67.26. In general, if the reading goes above -20, the stock may be considered to be overbought.

Tracking stock levels, Constellation Brands Inc (STZ) has a 14-day Commodity Channel Index (CCI) of -15.71. Even though the name contains the word commodity, CCI can be used on other investment tools such as stocks. The CCI was developed to typically stay within the -100 to +100 levels. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

When applying indicators for technical analysis, traders and investors might want to examine the ATR or Average True Range. The current 14-day ATR for Constellation Brands Inc (STZ) is currently sitting at 4.99. The ATR basically measures the volatility of a stock on a day-to-day basis. The average true range is typically based on 14 periods and may be calculated daily, weekly, monthly, or intraday. The ATR is not considered a directional indicator, but it may reflect the strength of a particular move.

Looking at some moving average levels on shares of Constellation Brands Inc (STZ), the 200-day is at 218.82, the 50-day is 214.00, and the 7-day is sitting at 201.52. Moving averages can help identify trends and price reversals. They may also be used to help spot support and resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.

The 14-day ADX for Constellation Brands Inc (STZ) is currently sitting at 28.21. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend.

Traders are often looking for any little advantage that they can get when attempting to grab profits in the stock market. Traders might be closely watching insider buying and selling as well as what the successful fund managers are doing. Following the smart money can help investors get a grasp on the bigger picture of what is going on with certain equities. There is no shortage of information that the individual trader can get their hands on. Figuring out how to best put that information to work is an important part of any trading plan. With so much data to track, traders may need to decide which information they will use when making the big investing decisions. Pinpointing the next great trade could be just around the corner, but it may take some hard work and enhanced focus.


Posted in Corona