Boston Beer (SAM) Raised to “Strong-Buy” at Zacks Investment Research
Boston Beer (NYSE:SAM) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Thursday. The firm currently has a $221.00 price objective on the stock. Zacks Investment Research‘s price objective points to a potential upside of 14.06% from the company’s current price.
According to Zacks, “Boston Beer, which has outperformed the industry in last three months, posted solid third-quarter 2017 with both earnings and sales surpassing estimates. While this was the company’s fourth-straight earnings beat, sales topped estimates for the second-consecutive quarter. Earnings gained from enhanced gross margin and lower operating costs owing to cost saving initiatives. We remain encouraged by Boston Beer’s three-point growth plan focused on revival of Samuel Adams and Angry Orchard brands, cost-saving initiatives and long-term innovation. The company's focus on pricing, product innovation and brand development are also likely to boost operational performance and market position. Moreover, the company’s brand-building efforts and initiatives to add new products remain key revenue drivers. However, results continue to be hurt by soft depletion trends owing to weakness in Samuel Adams, soft craft beer and cider categories.”
SAM has been the subject of a number of other reports. Berenberg Bank reissued a “sell” rating and issued a $124.00 price target on shares of Boston Beer in a report on Monday, September 18th. Stifel Nicolaus began coverage on Boston Beer in a research report on Tuesday, December 5th. They issued a “hold” rating and a $166.00 price objective for the company. Credit Suisse Group boosted their price objective on Boston Beer from $150.00 to $151.00 and gave the company a “neutral” rating in a research report on Thursday, October 19th. Citigroup boosted their price objective on Boston Beer from $165.00 to $181.00 and gave the company a “neutral” rating in a research report on Monday, October 30th. Finally, Susquehanna Bancshares cut Boston Beer from a “positive” rating to a “neutral” rating and cut their price objective for the company from $216.00 to $183.00 in a research report on Monday, November 13th. Three equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and one has issued a strong buy rating to the company. The company currently has an average rating of “Hold” and a consensus price target of $158.55.
Shares of Boston Beer (NYSE:SAM) traded up $1.95 during trading hours on Thursday, reaching $193.75. The company’s stock had a trading volume of 112,200 shares, compared to its average volume of 126,271. Boston Beer has a one year low of $128.70 and a one year high of $197.05. The firm has a market capitalization of $2,280.00, a P/E ratio of 26.43, a PEG ratio of 5.66 and a beta of 0.58.
Boston Beer (NYSE:SAM) last announced its quarterly earnings results on Thursday, October 26th. The company reported $2.78 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.99 by $0.79. Boston Beer had a return on equity of 21.11% and a net margin of 9.97%. The company had revenue of $247.04 million during the quarter, compared to the consensus estimate of $256.73 million. During the same period in the previous year, the company posted $2.48 earnings per share. Boston Beer’s revenue for the quarter was down 2.5% on a year-over-year basis. equities analysts expect that Boston Beer will post 6.22 EPS for the current fiscal year.
In related news, insider Martin F. Roper sold 10,000 shares of the business’s stock in a transaction that occurred on Friday, January 5th. The stock was sold at an average price of $187.20, for a total transaction of $1,872,000.00. Following the completion of the sale, the insider now directly owns 42,273 shares in the company, valued at $7,913,505.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director David A. Burwick sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 2nd. The stock was sold at an average price of $190.01, for a total value of $950,050.00. The disclosure for this sale can be found here. Insiders sold 36,420 shares of company stock valued at $6,827,457 over the last 90 days. Company insiders own 28.50% of the company’s stock.
Several institutional investors and hedge funds have recently modified their holdings of SAM. JPMorgan Chase & Co. increased its position in shares of Boston Beer by 443.2% during the third quarter. JPMorgan Chase & Co. now owns 118,251 shares of the company’s stock worth $18,802,000 after purchasing an additional 96,481 shares in the last quarter. Prudential Financial Inc. increased its position in shares of Boston Beer by 104.8% during the third quarter. Prudential Financial Inc. now owns 132,762 shares of the company’s stock worth $20,738,000 after purchasing an additional 67,940 shares in the last quarter. Ameriprise Financial Inc. increased its position in shares of Boston Beer by 147.8% during the second quarter. Ameriprise Financial Inc. now owns 81,738 shares of the company’s stock worth $10,801,000 after purchasing an additional 48,757 shares in the last quarter. Arlington Value Capital LLC purchased a new stake in shares of Boston Beer during the second quarter worth approximately $6,311,000. Finally, Apertura Capital LLC purchased a new stake in Boston Beer in the 3rd quarter valued at $5,311,000. Hedge funds and other institutional investors own 75.83% of the company’s stock.
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About Boston Beer
The Boston Beer Company, Inc 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 selected international markets. The Company operates through two segments: Boston Beer Company segment, and A&S Brewing Collaborative segment.
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