Analyst Turns Cold on Boston Beer Stock

The shares of Boston Beer Company Inc (NYSE:SAM) are down 0.4% at $305 at last check, after RBC downgraded the equity to "sector perform" from "outperform," and cut its price target to $331 from $488. The analyst in question said it expects the brewer to lower its outlook amid volume issues, and does not anticipate the company's seltzers will achieve targets despite easing competition.

RBC joins a bearish brokerage bunch. In fact, six of the seven analysts in coverage call SAM a "hold" or worse. Meanwhile, short sellers are piling on, with short interest now up 13.4% over the past two reporting periods, and making up 6.9% of the stock's available float.

While the shares have been testing a floor at the $300 level of late, Boston Beer stock is down 39.4% in 2022. The 50-day moving average rejected the security's latest rally off a June 22, two-year low of $288.64, and has continued to pressure SAM lower ever since.

Back at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SAM's 10-day call/put volume ratio of 2.17 sits higher than all readings from the past year. Should some of this optimism start to unwind, the stock could drop even lower.

Now looks like an ideal time to weigh in on the equity's next move with options, given its Schaeffer's Volatility Scorecard (SVS) sits at an elevated  95 out of 100. In other words, Boston Beer stock has exceeded option traders' volatility expectations over the last 12 months.