Boston Beer Co. (SAM) Lowered to “Sell” at Zacks Investment Research
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.”
Several other research firms have also recently issued reports on SAM. Jefferies Group reissued a hold rating on shares of Boston Beer in a research note on Wednesday, August 10th. William Blair started coverage on Boston Beer in a research note on Wednesday, September 21st. They set an outperform rating on the stock. Credit Suisse Group AG started coverage on Boston Beer in a research note on Thursday, September 15th. They set an underperform rating and a $156.00 target price on the stock. Cowen and Company cut Boston Beer from a market perform rating to an underperform rating and reduced their target price for the company from $170.00 to $128.00 in a research note on Wednesday, September 21st. Finally, Susquehanna reissued a hold rating and set a $165.00 target price on shares of Boston Beer in a research note on Sunday, July 3rd. Four investment analysts have rated the stock with a sell rating, nine have issued a hold rating and one has given a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average target price of $174.55.
Boston Beer (NYSE:SAM) traded down 0.187% during midday trading on Wednesday, reaching $162.495. 57,499 shares of the company traded hands. Boston Beer has a one year low of $145.33 and a one year high of $260.51. The firm has a market capitalization of $2.00 billion, a price-to-earnings ratio of 24.333 and a beta of 0.64. The firm has a 50-day moving average price of $166.72 and a 200-day moving average price of $168.04.
Boston Beer (NYSE:SAM) last posted its earnings results on Thursday, July 21st. The company reported $2.06 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ 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 firm had revenue of $244.80 million for the quarter, compared to analysts’ expectations of $238.87 million. Equities analysts predict that Boston Beer will post $6.46 EPS for the current fiscal year.
In other news, insider Martin F. Roper sold 5,000 shares of the company’s stock in a transaction on Wednesday, September 28th. The stock was sold at an average price of $150.07, for a total transaction of $750,350.00. Following the transaction, the insider now directly owns 37,273 shares of the company’s stock, valued at $5,593,559.11. The sale was disclosed in a filing with the SEC, which is available at 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 transaction, the insider now directly owns 34,430 shares in the company, valued at $5,307,728.80. The disclosure for this sale can be found here. 31.30% of the stock is owned by company insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Nisa Investment Advisors LLC increased its position in shares of Boston Beer by 3.3% in the second quarter. Nisa Investment Advisors LLC now owns 3,100 shares of the company’s stock worth $530,000 after buying an additional 100 shares during the last quarter. Fisher Asset Management LLC increased its position in shares of Boston Beer by 0.3% in the second quarter. Fisher Asset Management LLC now owns 345,673 shares of the company’s stock worth $59,024,000 after buying an additional 950 shares during the last quarter. Nepsis Capital Management Inc. increased its position in shares of Boston Beer by 15.2% in the second quarter. Nepsis Capital Management Inc. now owns 22,460 shares of the company’s stock worth $3,841,000 after buying an additional 2,968 shares during the last quarter. Curbstone Financial Management Corp increased its position in shares of Boston Beer by 5.2% in the second quarter. Curbstone Financial Management Corp now owns 3,040 shares of the company’s stock worth $520,000 after buying an additional 150 shares during the last quarter. Finally, BNP Paribas Arbitrage SA acquired a new position in shares of Boston Beer during the second quarter worth about $709,000. 65.23% of the stock is currently owned by hedge funds and other institutional investors.
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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