Strong beer trends lift Constellation Brands

The firm’s 50 day moving average price is $126.96 and its 200-day moving average price is $120.04.

The Victor, New York-based company said it had profit of $1.49 per share.

Historically, Constellation Brands Incorporated has been trading with a 52 week low of 130.67 and a 52 week of high 132.47.

(STZ) on Wednesday reported fiscal second-quarter earnings of $302.4 million. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.31 per share.

The company announced in June that it would invest over $2 billion in its operation in Mexico in order to expand its brewery and bottling plant located in Coahuila. This is expected to include $950 million to $1.05 billion for the beer business. Equities analysts expect that Constellation Brands will post $4.98 EPS for the current year. The shares will quote ex-dividend on November 5, 2015 and the record date has been fixed on November 9, 2015. This represents a $1.24 annualized dividend and a yield of 0.94%. This was higher than $222.0 million, or $1.11 per share, in last year’s second quarter. The stock was sold at an average price of $129.75, for a total transaction of $1,664,173.50. Following the completion of the transaction, the vice president now owns 3,071 shares in the company, valued at approximately $398,462.25.

In other news, VP Thomas Michael Kane sold 12,826 shares of Constellation Brands stock in a transaction that occurred on Wednesday, August 19th.

The stock had changed -0.70% since market close yesterday. The disclosure for this sale can be found here.

Several other research firms also recently weighed in on STZ.

Constellation Brands Incorporated to Report Earnings; What do Analysts Expect? Scotiabank boosted their price objective on Constellation Brands from $137.00 to $139.00 and gave the company a “strong-buy” rating in a research report on Friday, July 3rd. Stifel Nicolaus dropped their target price on Constellation Brands from $149.00 to $145.00 and set a buy rating on the stock in a research report on Thursday, July 2nd. Credit Agricole raised shares of Constellation Brands from an “underperform” rating to an “outperform” rating in a report on Tuesday, September 1st. The company now has an average rating of “Buy” and a consensus target price of $125.81.

On a different note, The Company has disclosed insider buying and selling activities to the Securities Exchange, The officer (Exec VP & Pres., Wine&Spirits), of Constellation Brands, Inc., Wright John A had unloaded 18,644 shares at $127.22 per share in a transaction on August 28, 2015.

The company is benefiting from strong demand from the rising Hispanic population in the United States who prefer the company’s beer brands such as Modelo Especial and from other consumers switching to premium Mexican beers. “Our wine and spirits business posted improved margins, strong sales growth for our spirits portfolio and excellent financial results for our Canadian business”, Sands said in a statement. It is a multi-category supplier (NYSE:STZ) of beverage alcohol in America.