Constellation Brands Ticks Up, But Insider Trading Continues
Shares of Constellation Brands Inc. (NYSE:STZ) jumped on Monday after investors saw that Grupo Modelo SAB, the brewer of Corona beer, could soon be fully acquired, potentially setting the winemaker up to either keep its beer distribution business or sell it, Dow Jones Newswires reports.
But although Constellation is in a good position, company officials are continuing to file insider trading reports with the SEC, suggesting these high-level employees could be privy to certain information that isn't divulged to the public.
According to the media outlet, analysts say Modelo could soon be fully acquired by Anheuser Busch InBev NV, which already has a 50 percent non-controlling stake in the company. Such a takeover would ease fears among investors that Constellation could lose its distribution rights to beers under the Modelo umbrella come the end of a 10-year contract in 2017.
The company's stock was up 12.85 percent as of 4:05 p.m. to $21.86. Despite this climb and the positive future that lies ahead of the company, insiders have sold in the last three months $1.23 million in shares, ranging in price from $21.49 to $22.00 each.
Why do you think company officials are selling off so much stock?
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