D1 Capital Partners Bets Big on Constellation Brands as Earnings Surge

Published 5 hours agoSTZ

D1 Capital Partners Bets Big on Constellation Brands as Earnings Surge

Daniel Sundheim's D1 Capital Partners has made a significant investment in Constellation Brands, holding an equity stake valued at approximately $137.36 million. This move underscores the hedge fund's confidence in the alcoholic beverage company's growth prospects.

Constellation Brands has reported impressive financial results for the fiscal second quarter of 2025. The company exceeded analysts' expectations with an earnings per share of $4.32. Revenues climbed by 2.9% to reach $2.92 billion. Notably, the beer segment, making up more than 80% of the company's total revenue, saw a 13% boost in operating income and an almost 6% rise in net sales, according to Insider Monkey.

In line with its strategic efforts to tap into the high-end market, Constellation Brands has divested its Svedka vodka brand, focusing more on premium wines and spirits. Argus, a stock analysis firm, has maintained a 'Buy' rating for the company with a $306.00 price target, emphasizing the firm's value and growth potential. As of April 29, 2025, the stock was trading at $186.11, reflecting a slight increase of 0.19% from the previous close.

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