Morgan Stanley maintained its Constellation Brands Inc. [NYSE:STZ] rating to the equivalent of Overweight but changed the price target to $240, in a research note dated December 31, 2020. That figure represents around a 9.98% premium from where the company’s shares closed on Wednesday. Some new analysts also started their coverage, with Wells Fargo’s analysts assigning the shares to ”an Overweight” rating in a research note to investors issued in early December. Meanwhile, Morgan Stanley had raised its rating on STZ to “an Overweight” from the earlier “an Equal-weight”, in a research note produced for clients November 03, 2020. In addition, there was a downgrade from Atlantic Equities on October 14, 2020. The rater changed STZ from “an Overweight” to “a Neutral”.
Is Constellation Brands Inc. [NYSE:STZ] a Good Buy Right Now?
It should be noted that STZ technical indicators for short, intermediate as well as long term progress have placed an overall average of 100% as Buy. The average signal changed from 100% Buy in the last week and compares with 100% Buy in the past month. Data from Constellation Brands Inc.’s Trend Spotter indicated that the signals were Weakest. The stock current average is 0.98 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 1.07 million shares while the medium term average advocated for 100% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 1.04 million shares.
STZ Price Performance
On Wall Street, Constellation Brands Inc. [NYSE:STZ] finished Wednesday’s session up 0.35% at $218.21. The stock went up to $219.78 at the same session while its lowest single day price was $217.01. In the last five days, it saw a rise of about 2.47%, Constellation Brands Inc. shares gained by almost 15.00% since the beginning of the year. However, the share price has dropped to as low as -0.81% below its one year high. On 12/29/20, the company shares recorded $220.00, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 03/23/20, the same year at $104.28. The company’s shares have inclined by 15.00% in the past year. The 50-day SMA achieved is $199.49 while the 200-day SMA is $179.12. Volume dropped to 0.43 million from 0.69 million in the previous session.
Constellation Brands Inc. [STZ] Valuation Measures
Notably, Constellation Brands Inc. [STZ] stock cannot be classified as a good candidate in the listing of underestimated low-priced Beverages – Wineries & Distilleries companies to purchase soonest possible with the prevailing 12-month PE ratio of 40.80. The measure means the stock is exchanging at a premium as compared to the 25.19x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 5.16 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 1.98 which means STZ serve an unattractive investment opportunity compared to its competitors.
STZ Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 216.89 level, and in case of violation of this particular level, it will cause more drop to 215.56 level. On the upper level, 221.10 is still the key resistance. The stock may increase to the subsequent resistance at 219.66. The Relative Strength Index (RSI) pinned on the 14-day chart is 63.50, implying a neutral technical stance while the MACD stands at 4.09, meaning price will increase in the next trading period. Percent R indicator moved to 11.52%, implying bullish price movement. Stochastic %K at 88.19% suggest selling the stock.
What is the short interest in Constellation Brands Inc.?
Short interest in the Constellation Brands Inc. stock has surged, increasing by 1.67 million shares to total 3.85 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 5.52 million, data from Yahoo Finance shows. The decrease of -43.38% suggests the stock saw some decreased bullish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 2.37% of the overall float for the stock.
Constellation Brands Inc.’s Biggest Shareholders: Who Owns Constellation Brands Inc. [STZ]?
Filings by Capital Research & Management Co showed that the firm now holds a total of 12,242,989 shares or roughly 7.22% of the outstanding STZ shares. This means their shares have reduced by -554,728 from the 12,242,989 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, The Vanguard Group, Inc. updated stake is worth $2,422,825,723. Details in the latest 13F filings reveal that SSgA Funds Management, Inc. disposed off their -1.75% stake valued at $1,526,445,630 while BlackRock Fund Advisors cut theirs at $1,388,649,747. During the last quarter, SSgA Funds Management, Inc. liquidated -132,279 of its shares in Constellation Brands Inc. while BlackRock Fund Advisors sold -156,365 shares. The Wellington Management Co. LLP’s holdings currently number 5,670,710 shares at $1237405629.1. According to the firm’s last 13F report, JPMorgan Investment Management, I shares in the company at filing stood at 4,637,118 shares, roughly $954,504,369.
STZ Earnings Forecast For The Current Quarter
Constellation Brands Inc. [STZ] is expected to report strong earnings results for the quarter ending on Nov 2020. Consensus estimates give the company expected revenues of $2.23B and an earnings per share of $2.39 for Nov 2020. Looking further ahead, the company is expected to report revenue of $1.98B at an EPS of $2 for Feb 2021.
STZ Earnings Estimates For The Current Year
For the financial year, Constellation Brands Inc. [NYSE:STZ] is expected to bring in revenue of $8.38B. The returns are nearly $40.0 million higher than the company’s actual revenue recorded in the fiscal year 2020. In terms of EPS for the 2021, estimate put it at 9.42, higher than that of FY20 by $0.3. Estimates put this year’s earnings growth at 3.30%, 8.10% for the next, and at an annual 8.80% over the next 5-year period. As for sales, forecasts are for an increase of 0.40% in the current fiscal year and a further 0.10% over the following year.