Constellation Brands EVP & CFO sells over $8 million in stock

Published 12/08/2024, 22:26
Constellation Brands EVP & CFO sells over $8 million in stock

Constellation Brands, Inc. (NYSE:STZ) has reported a significant transaction involving its EVP and CFO, Hankinson Garth, who sold a total of $8,086,493 worth of Class A Common Stock. The transactions took place over two days, with the executive offloading shares at prices ranging from $240.00 to $240.1639.

On August 8, 2024, Garth sold 13,583 shares at a price of $240 each. The following day, on August 9, he sold an additional 20,097 shares, with the sale price slightly higher, averaging $240.1639. This weighted average sale price was achieved through multiple transactions at prices between $240.0000 and $240.6200. In total, the two days of sales resulted in the disposition of 33,680 shares owned by the executive.

The sales were reported alongside the acquisition of shares through the conversion of Class 1 Common Stock into Class A Common Stock on a one-to-one basis, as noted in the footnotes of the SEC filing. According to the company's certificate of incorporation, any shares of Class A Common Stock issued upon such conversion must be sold immediately.

It is important to note that the reported shares of Class A Common Stock received upon conversion did not involve any monetary transaction, hence the total value for the "C" transactions was reported as $0, with a price of $0.

Constellation Brands, a leading beverage company, is known for its portfolio of beer, wine, and spirits brands. The financial moves by one of its top executives may be of interest to investors and market watchers.

Investors and analysts typically monitor insider transactions as they can provide insights into an executive's confidence in the company's future performance. However, such transactions can be motivated by a variety of personal financial considerations and do not necessarily reflect the executive's outlook on the company's future prospects.

For those interested in the detailed transaction data, the Form 4 filing with the SEC provides full disclosure of the transactions, including the number of shares sold at each separate price upon request.

In other recent news, Constellation Brands has been making significant strides in the market. The company's first-quarter earnings per share (EPS) of $3.57 surpassed consensus estimates, largely driven by robust beer sales. Despite facing challenges, the wine and spirits division is expected to rebound by fiscal year 2025, according to analysts from firms such as TD Cowen and BMO Capital.

In addition, the company held its Annual Meeting of Stockholders, resulting in the election of thirteen directors to the board and the ratification of KPMG LLP as the independent auditor for the upcoming fiscal year. However, three stockholder proposals related to environmental concerns were not approved.

Several analyst firms, including Piper Sandler, Argus, Citi, and BMO Capital, have maintained positive ratings for the company. Piper Sandler, for instance, reiterated an Overweight rating and a $300.00 price target, while BMO Capital maintained an Outperform rating with a $315 price target.

Moreover, Constellation Brands returned $185 million to shareholders through dividends and executed $200 million in share repurchases. The company's beer portfolio achieved high-single digit net sales growth, marking a 57th consecutive quarter of depletion growth. These are the recent developments that have shaped the company's trajectory.

InvestingPro Insights

As Constellation Brands, Inc. (NYSE:STZ) navigates through the market, real-time data from InvestingPro offers a clearer picture of the company's financial health and market position. With a market capitalization of $43.53 billion and an attractive price-to-earnings (P/E) ratio standing at 17.75, Constellation Brands presents a compelling case for investors seeking stability in the beverage industry.

The company's commitment to shareholder returns is evident through its consistent dividend growth, having raised its dividend for nine consecutive years. This is a testament to its financial resilience and dedication to delivering value to its shareholders. Furthermore, the recent analyst sentiment is positive, with seven analysts revising their earnings upwards for the upcoming period, indicating potential confidence in the company's future performance.

InvestingPro Tips reveal that Constellation Brands has maintained profitability over the last twelve months, and analysts predict the company will continue to be profitable this year. These insights, coupled with the fact that the company's liquid assets exceed its short-term obligations, provide a reassuring signal of financial stability.

For investors interested in exploring more about Constellation Brands, there are additional InvestingPro Tips available at https://www.investing.com/pro/STZ. These tips delve deeper into the company's financials and market performance, offering a comprehensive analysis for those looking to make informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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