5 Best Beverage Stocks To Buy

4. Constellation Brands, Inc. (NYSE:STZ)

Number of Hedge Fund Holders: 42

Constellation Brands, Inc. (NYSE:STZ) and its affiliated companies are involved in the production, importation, marketing, and sale of beer, wine, and spirits across multiple countries including the United States, Canada, Mexico, New Zealand, and Italy. On April 6, Constellation Brands, Inc. (NYSE:STZ) declared a $0.89 per share quarterly dividend, an 11.3% increase from its prior dividend of $0.80. The dividend is distributable on May 18, to shareholders of record on May 4. 

On April 10, Peter Grom, an analyst at UBS, increased the price target for Constellation Brands, Inc. (NYSE:STZ) from $267 to $280 while maintaining a Buy rating on the company’s shares. In a research note to investors, the analyst described Constellation Brands, Inc. (NYSE:STZ)’s performance as a “solid” beat, with the beer division delivering better-than-anticipated results. Despite some concerns regarding weaker Q4 depletions, Grom believes that the overall performance and outlook are positive. However, the analyst noted that these positive developments may not completely address concerns about the future growth trajectory of the beer business.

According to Insider Monkey’s fourth quarter database, 42 hedge funds were bullish on Constellation Brands, Inc. (NYSE:STZ), compared to 43 funds in the earlier quarter. D E Shaw is the biggest stakeholder of the company, with 579,915 shares worth $134.4 million.