Boston Beer Co. (NYSE:SAM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note 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 research analysts also recently issued reports about the company. Susquehanna reiterated a “hold” rating and set a $165.00 target price on shares of Boston Beer in a research note on Sunday, July 3rd. Jefferies Group reiterated a “hold” rating on shares of Boston Beer in a research note on Wednesday, August 10th. William Blair initiated coverage on Boston Beer in a research note on Wednesday, September 21st. They set an “outperform” rating for the company. Cowen and Company downgraded Boston Beer from a “market perform” rating to an “underperform” rating and reduced their target price for the stock from $170.00 to $128.00 in a research note on Wednesday, September 21st. Finally, Credit Suisse Group AG initiated coverage on Boston Beer in a research note on Thursday, September 15th. They set an “underperform” rating and a $156.00 target price for the company. Four analysts have rated the stock with a sell rating, nine have given a hold rating and one has given a buy rating to the company. The company currently has an average rating of “Hold” and an average target price of $174.55.
Boston Beer (NYSE:SAM) opened at 163.18 on Wednesday. Boston Beer has a 1-year low of $145.33 and a 1-year high of $260.51. The firm’s 50-day moving average price is $165.90 and its 200 day moving average price is $168.01. The firm has a market capitalization of $2.01 billion, a price-to-earnings ratio of 24.44 and a beta of 0.64.
Boston Beer (NYSE:SAM) last issued its earnings results on Thursday, July 21st. The company reported $2.06 EPS for the quarter, topping 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 company earned $244.80 million during the quarter, compared to the consensus estimate of $238.87 million. On average, analysts predict that Boston Beer will post $6.46 EPS for the current year.
In other news, major shareholder Tybourne Capital Management Hk sold 600 shares of the company’s stock in a transaction on Monday, July 25th. The stock was sold at an average price of $186.33, for a total transaction of $111,798.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP David L. Grinnell sold 1,000 shares of the company’s stock in a transaction on Thursday, July 21st. The shares were sold at an average price of $164.81, for a total value of $164,810.00. The disclosure for this sale can be found here. 31.30% of the stock is owned by corporate insiders.
Several hedge funds have recently added to or reduced their stakes in the stock. Tower Research Capital LLC TRC increased its stake in Boston Beer by 7.6% in the second quarter. Tower Research Capital LLC TRC now owns 965 shares of the company’s stock worth $165,000 after buying an additional 68 shares during the last quarter. Advisor Group Inc. bought a new stake in Boston Beer during the second quarter worth $199,000. Teacher Retirement System of Texas increased its stake in Boston Beer by 12.9% in the second quarter. Teacher Retirement System of Texas now owns 1,267 shares of the company’s stock worth $217,000 after buying an additional 145 shares during the last quarter. Diversified Trust Co bought a new stake in Boston Beer during the second quarter worth $218,000. Finally, Pacad Investment Ltd. bought a new stake in Boston Beer during the second quarter worth $222,000. Hedge funds and other institutional investors own 65.23% of the company’s stock.
About Boston Beer
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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