Constellation Brands put volume heavy and directionally bearish » 11:5505/2905/29/20
Bearish flow noted in…
Bearish flow noted in Constellation Brands with 1,391 puts trading, or 1.3x expected. Most active are 5/29 weekly 175 puts and 5/29 weekly 170 puts, with total volume in those strikes near 490 contracts. The Put/Call Ratio is 3.59, while ATM IV is up nearly 3 points on the day. Earnings are expected on June 26th.
Constellation and Gallo revise pact in connection with FTC review » 16:3905/2805/28/20
Constellation Brands that…
Constellation Brands that it and E. & J. Gallo Winery have further revised their original transaction to divest a portion of Constellation's wine and spirits portfolio principally priced at $11 retail and below, including certain related facilities located in California, New York, and Washington. The new agreement amends and restates the original agreement announced in April 2019 and the revised agreement announced in December 2019. Constellation's Mission Bell facility and certain related real estate, equipment, contracts, and employees are now excluded from the transaction. The revised agreement was amended to support Constellation's production needs following its decision to retain Cook's California Champagne and J. Roget American Champagne. Excluding the Mission Bell facility and related assets from the transaction results in an adjusted transaction price of approximately $1.03B, subject to closing adjustments, of which $250M is an earnout if brand performance provisions are met over a two-year period after closing. The revised transaction is expected to close in the second quarter of fiscal 2021 and is subject to FTC review and clearance. Constellation also expects to close its separate but related transaction with Gallo to divest the New Zealand-based Nobilo Wine brand and related assets for $130M by the end of the second quarter of fiscal 2021, subject to FTC review and clearance. "This move puts us one step closer to finalizing this transaction," said Bill Newlands, president and chief executive officer, Constellation Brands. "We continue to work in collaboration with Gallo to satisfy all FTC obligations, and both companies remain fully committed to closing the transaction. Our wine and spirits transformation strategy continues to gain traction and we look forward to closing.
Constellation Brands: 'Number' of headwinds that will 'temper' Q1 results » 12:0305/2705/27/20
The company said that…
The company said that while it is seeing accelerated trends in track channels, "there are a number of headwinds that will temper our Q1 results." Comments taken from the RBC Global Consumer & Retail Conference.
|Over a week ago|
MKM Partners sees negative pre-announcement as likely from Constellation Brands » 13:4505/2005/20/20
MKM Partners analyst Bill…
MKM Partners analyst Bill Kirk said production codes observed in Texas at retail suggest that Constellation Brands did not have 70 days of inventory for certain products and packages and noted that Beer Business Daily reported the company suggested possible "tightness in supply for certain packages in peak summer months." The analyst, who did acknowledge that "Texas may not be representative," still thinks production codes imply significant out-of-stocks are possible and believes it is likely the company could pre-announce net sales declines. Kirk has a Sell rating and $147 price target on Constellation Brands shares.
Fly Intel: Top five analyst downgrades » 10:0505/0805/08/20
SQ, STZ, H, RMAX, MSI
Catch up on today's…
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Square (SQ) downgraded to Neutral from Buy at Guggenheim with analyst Jeff Cantwell saying he now sees a balanced risk/reward with the shares trading above his prior $65 price target following yesterday's post-Q1 jump. 2. Constellation Brands (STZ) double downgraded to Sell from Buy at MKM Partners with analyst Bill Kirk saying in U.S. markets, certain Constellation brands and pack-sizes are already experiencing availability issues, despite the communicated 70 days of inventory, and he expects the breadth of out-of-stocks to increase through the end of June. 3. Hyatt (H) downgraded to Neutral from Outperform at Macquarie. 4. RE/MAX Holdings (RMAX) downgraded to Market Perform from Outperform at William Blair. 5. Motorola Solutions (MSI) downgraded to Underweight from Neutral at JPMorgan with analyst Paul Coster saying the company's "relative safe-haven status" is likely to get reevaluated in the context of weak near-term guidance. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Constellation Brands double-downgraded to Sell from Buy at MKM Partners » 06:0905/0805/08/20
MKM Partners analyst Bill…
MKM Partners analyst Bill Kirk double-downgraded Constellation Brands to Sell from Buy with a price target of $147, down from $216. The analyst notes that in U.S. markets, certain Constellation brands and pack-sizes are already experiencing availability issues, despite the communicated 70 days of inventory, and he expects the breadth of out-of-stocks to increase through the end of June. Kirk further cites a very real risk that production will not increase on May 18th due to Mexico COVID-19 constraints.
Constellation Brands downgraded to Sell from Buy at MKM Partners » 05:3605/0805/08/20
MKM Partners analyst Bill…
MKM Partners analyst Bill Kirk double downgraded Constellation Brands to Sell from Buy with a price target of $147, down from $216.
Rising High: Innovative Industrial Partners triples revenue in Q1 » 10:4505/0705/07/20
IIPR, CANN, ALEAF, MEDIF, STZ, STZ.B, CGC, APHA, ACB, CVSI, CTST, CRON, IGC, TLRY, TCNNF, ZYNE
In this week's "Rising…
Fly Intel: Wall Street's top stories for Monday » 16:5205/0405/04/20
BRK.A, BRK.B, UAL, DAL, AAL, LUV, GILD, RHHBY, PKI, TEF, LBTYA, GE, TSN, STML, CGC, STZ, OXLC, SMLP, PBI
Worries about the…
Fly Intel: Wall Street's top stories at midday » 11:5505/0405/04/20
DAL, AAL, LUV, UAL, BRK.A, GILD, RHHBY, PKI, TEF, LBTYA, GE, STML, CGC, STZ, OXLC, SMLP, PBI
U.S. equities are off…