Boston Beer (NYSE:SAM) Shares Gap Down - Should You Sell?

Key Points

• Boston Beer Company shares experienced a gap down, opening at $220.43 after closing at $226.76, with the last trade at $219.69.
• Brokerages have issued various ratings, with Weiss Ratings maintaining a "sell" rating and Jefferies lowering its price target to $225.00, while Goldman Sachs cut its target to $187.00, emphasizing a cautious outlook on the stock.
• Boston Beer reported an earnings per share (EPS) of $5.45 for the last quarter, exceeding estimates, but with revenue slightly below expectations at $587.95 million, showing a growth of 1.5% from the previous year.

The Boston Beer Company, Inc. (NYSE:SAM - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $226.76, but opened at $220.43. Boston Beer shares last traded at $219.69, with a volume of 17,500 shares traded.

Analysts Set New Price Targets

Several brokerages recently issued reports on SAM. Weiss Ratings reiterated a "sell (d+)" rating on shares of Boston Beer in a report on Saturday, September 27th. Jefferies Financial Group reduced their price target on Boston Beer from $230.00 to $225.00 and set a "hold" rating on the stock in a research report on Tuesday, September 30th. The Goldman Sachs Group decreased their price target on Boston Beer from $219.00 to $187.00 and set a "sell" rating for the company in a report on Monday, June 23rd. Sanford C. Bernstein set a $230.00 price objective on shares of Boston Beer and gave the company a "market perform" rating in a research note on Monday, July 28th. Finally, Evercore ISI decreased their target price on shares of Boston Beer from $275.00 to $250.00 and set an "in-line" rating for the company in a research note on Friday, July 25th. One analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce" and a consensus price target of $250.18.

Boston Beer Stock Performance

The business has a 50 day simple moving average of $218.82 and a 200-day simple moving average of $222.25. The stock has a market capitalization of $2.43 billion, a P/E ratio of 30.70, a price-to-earnings-growth ratio of 1.93 and a beta of 0.83.

Boston Beer (NYSE:SAM - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The company reported $5.45 EPS for the quarter, topping the consensus estimate of $4.37 by $1.08. The firm had revenue of $587.95 million for the quarter, compared to analysts' expectations of $599.18 million. Boston Beer had a net margin of 3.65% and a return on equity of 15.15%. Boston Beer's revenue for the quarter was up 1.5% compared to the same quarter last year. During the same period in the previous year, the business earned $4.39 earnings per share. Boston Beer has set its FY 2025 guidance at 8.000-10.500 EPS. Equities research analysts forecast that The Boston Beer Company, Inc. will post 9.29 EPS for the current fiscal year.

Insider Buying and Selling at Boston Beer

In related news, VP Annette N. Fritsch sold 600 shares of Boston Beer stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $219.24, for a total value of $131,544.00. Following the transaction, the vice president owned 9,715 shares of the company's stock, valued at approximately $2,129,916.60. This trade represents a 5.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 26.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Boston Beer

Hedge funds have recently made changes to their positions in the company. First Horizon Advisors Inc. raised its stake in Boston Beer by 24.4% during the 1st quarter. First Horizon Advisors Inc. now owns 214 shares of the company's stock valued at $51,000 after purchasing an additional 42 shares during the period. California State Teachers Retirement System lifted its stake in Boston Beer by 0.7% in the 2nd quarter. California State Teachers Retirement System now owns 8,414 shares of the company's stock worth $1,605,000 after acquiring an additional 57 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its position in Boston Beer by 2.8% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 2,115 shares of the company's stock worth $404,000 after acquiring an additional 58 shares during the period. Great Valley Advisor Group Inc. grew its stake in Boston Beer by 5.3% during the 2nd quarter. Great Valley Advisor Group Inc. now owns 1,192 shares of the company's stock valued at $227,000 after acquiring an additional 60 shares in the last quarter. Finally, US Bancorp DE increased its holdings in shares of Boston Beer by 23.5% in the 1st quarter. US Bancorp DE now owns 336 shares of the company's stock valued at $80,000 after purchasing an additional 64 shares during the period. Hedge funds and other institutional investors own 81.13% of the company's stock.

Boston Beer Company Profile

The Boston Beer Company, Inc produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, flavored malt beverages, and hard seltzers under the Samuel Adams, Twisted Tea, Truly, Angry Orchard, Dogfish Head, Angel City, and Coney Island brand names.

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