Constellation Brands Stock Makes a Stunning Progress: A Sharp Move?

Constellation Brands (STZ) stock has been in focus among investors since the start of the year. The stock has managed to record a loss of 19.05% in 2021 so far and the rally continued on Wednesday. This morning, the stock plunged by as low as 0.97% during pre-market trading after increasing 0.02% on Tuesday. One of the major triggers behind the rally this week is linked to the completion of the direct offering to institutional investors. The company sold 127 million shares of its common stock to institutional investors for $213.06 a share.

Constellation Brands (STZ) reported lower-than-expected second-quarter earnings on Wednesday, but exceeded Street revenue estimates and raised its full-year profit projection as the Corona and Modelo producer expects beer volumes to improve in the second half of the fiscal year. Constellation Brands reported adjusted profits of $2.38 per share for the three months ended August, the group’s fiscal second quarter, down 13.8% from the same time last year and significantly below the Street expectation of $2.77 per share. According to Constellation, group revenues decreased 5% to $2.371 billion, above analysts’ expectations of $2.302 billion.