Boston Beer Co. (SAM) Rating Lowered to Sell at Zacks Investment Research
Boston Beer Co. (NYSE:SAM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Wednesday.
According to Zacks, “Boston Beer is facing a tough time due to troubles at its Samuel Adams brand, which has been up against severe competition in the craft beer market, and a weakness in the cider class. This resulted in soft depletion trends and lower shipments in second-quarter fiscal 2016. Taking into account the first-half trends, the company lowered its earnings and depletions outlook for 2016. Also, Boston Beer remains vulnerable to the potential implementation of an excise tax on spirits. However, we believe Boston Beer’s practice of acquiring assets to expand geographically will help it to gain significant market share. Also, the company’s brand-building efforts and initiatives to add new products to its portfolio remain key revenue drivers. Management’s plan of aligning cost structure with volumes should also enhance performance. Estimates have been largely stable going into the third quarter earnings release.”
Other equities research analysts have also issued reports about the company. Jefferies Group reissued a “hold” rating and set a $151.00 price target (up from $145.00) on shares of Boston Beer in a research report on Monday, July 25th. William Blair began coverage on Boston Beer in a research report on Wednesday, September 21st. They set an “outperform” rating on the stock. Cowen and Company lowered Boston Beer from a “market perform” rating to an “underperform” rating and dropped their price target for the company from $170.00 to $128.00 in a research report on Wednesday, September 21st. Susquehanna reissued a “neutral” rating on shares of Boston Beer in a research report on Sunday, July 17th. Finally, Credit Suisse Group AG began coverage on Boston Beer in a research report on Thursday, September 15th. They set an “underperform” rating and a $156.00 price target on the stock. Four equities research analysts have rated the stock with a sell rating, nine have given a hold rating and one has assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $173.91.
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Boston Beer (NYSE:SAM) traded up 2.93% during midday trading on Wednesday, reaching $162.86. The company’s stock had a trading volume of 126,970 shares. The company has a market capitalization of $2.01 billion, a price-to-earnings ratio of 24.39 and a beta of 0.64. Boston Beer has a 1-year low of $145.33 and a 1-year high of $260.51. The company’s 50-day moving average price is $167.51 and its 200-day moving average price is $168.08.
Boston Beer (NYSE:SAM) last announced its earnings results on Thursday, July 21st. The company reported $2.06 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.94 by $0.12. Boston Beer had a return on equity of 19.60% and a net margin of 9.22%. The company had revenue of $244.80 million for the quarter, compared to analyst estimates of $238.87 million. On average, analysts predict that Boston Beer will post $6.46 earnings per share for the current fiscal year.
In other news, VP David L. Grinnell sold 1,000 shares of the company’s stock in a transaction on Thursday, July 21st. The stock was sold at an average price of $164.81, for a total value of $164,810.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Martin F. Roper sold 2,157 shares of the company’s stock in a transaction on Monday, October 3rd. The shares were sold at an average price of $154.16, for a total value of $332,523.12. Following the completion of the sale, the insider now owns 34,430 shares of the company’s stock, valued at approximately $5,307,728.80. The disclosure for this sale can be found here. 31.30% of the stock is owned by insiders.
Several hedge funds have recently made changes to their positions in the stock. Algert Global LLC raised its stake in shares of Boston Beer by 13.5% in the third quarter. Algert Global LLC now owns 4,122 shares of the company’s stock valued at $640,000 after buying an additional 490 shares during the period. Fisher Asset Management LLC raised its stake in shares of Boston Beer by 0.8% in the third quarter. Fisher Asset Management LLC now owns 348,515 shares of the company’s stock valued at $54,110,000 after buying an additional 2,842 shares during the period. Oregon Public Employees Retirement Fund raised its stake in shares of Boston Beer by 2.0% in the third quarter. Oregon Public Employees Retirement Fund now owns 3,264 shares of the company’s stock valued at $507,000 after buying an additional 64 shares during the period. Curbstone Financial Management Corp raised its stake in shares of Boston Beer by 5.3% in the third quarter. Curbstone Financial Management Corp now owns 3,200 shares of the company’s stock valued at $497,000 after buying an additional 160 shares during the period. Finally, Mason Street Advisors LLC purchased a new stake in shares of Boston Beer during the second quarter valued at $728,000. Institutional investors and hedge funds own 65.23% of the company’s stock.
Boston Beer Company Profile
The Boston Beer Company, Inc (Boston Beer) is a craft brewer in the United States. The Company is engaged in the business of producing and selling alcohol beverages primarily in the domestic market and in international markets. The Company operates through two segments: Boston Beer Company segment and A&S Brewing Collaborative segment.
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