Boston Beer (NYSE:SAM) Shares Gap Up After Earnings Beat

Key Points

• Boston Beer Company shares rose significantly, opening at $232.90 after an earnings announcement that beat analyst expectations with a reported EPS of $4.25, surpassing the consensus estimate of $3.78.
• Analysts have been cautious, with Citigroup downgrading the stock from "buy" to "neutral" while adjusting its price target downward, reflecting mixed sentiments about its future performance.
• Insider trading activity included VP Annette N. Fritsch selling 600 shares, reducing her position, highlighting some confidence concerns among company executives amidst the fluctuating stock performance.

The Boston Beer Company, Inc. (NYSE:SAM - Get Free Report) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $219.63, but opened at $232.90. Boston Beer shares last traded at $232.91, with a volume of 49,670 shares.

The company reported $4.25 EPS for the quarter, beating analysts' consensus estimates of $3.78 by $0.47. Boston Beer had a return on equity of 15.15% and a net margin of 3.65%.The company had revenue of $537.49 million for the quarter, compared to the consensus estimate of $542.97 million. During the same quarter in the previous year, the business earned $2.86 earnings per share. The company's revenue for the quarter was down 11.2% on a year-over-year basis. Boston Beer has set its FY 2025 guidance at 7.800-9.800 EPS.

Analyst Ratings Changes

Several brokerages recently issued reports on SAM. Citigroup downgraded Boston Beer from a "buy" rating to a "neutral" rating and cut their price objective for the stock from $255.00 to $235.00 in a research report on Monday, October 6th. Jefferies Financial Group lowered their price target on Boston Beer from $230.00 to $225.00 and set a "hold" rating for the company in a report on Tuesday, September 30th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Boston Beer in a report on Wednesday, October 8th. Morgan Stanley dropped their price objective on shares of Boston Beer from $270.00 to $245.00 and set an "equal weight" rating on the stock in a report on Friday, July 25th. Finally, Sanford C. Bernstein set a $230.00 price objective on shares of Boston Beer and gave the company a "market perform" rating in a report on Monday, July 28th. One analyst has rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Boston Beer presently has an average rating of "Reduce" and an average target price of $250.65.

Insider Activity at Boston Beer

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

Institutional Trading of Boston Beer

Several hedge funds have recently added to or reduced their stakes in SAM. First Horizon Advisors Inc. increased its position in shares of Boston Beer by 24.4% in 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 last quarter. California State Teachers Retirement System grew its position 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 valued at $1,605,000 after buying an additional 57 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its position in Boston Beer by 2.8% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 2,115 shares of the company's stock valued at $404,000 after purchasing an additional 58 shares during the period. Great Valley Advisor Group Inc. boosted its stake in shares of Boston Beer by 5.3% in the second quarter. Great Valley Advisor Group Inc. now owns 1,192 shares of the company's stock valued at $227,000 after buying an additional 60 shares in the last quarter. Finally, US Bancorp DE grew its stake in shares of Boston Beer by 23.5% during the 1st quarter. US Bancorp DE now owns 336 shares of the company's stock worth $80,000 after purchasing an additional 64 shares during the period. Institutional investors and hedge funds own 81.13% of the company's stock.

Boston Beer Stock Up 6.2%

The firm has a fifty day moving average of $220.17 and a 200-day moving average of $220.70. The stock has a market capitalization of $2.60 billion, a price-to-earnings ratio of 32.86, a PEG ratio of 2.01 and a beta of 0.83.

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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