Boston Beer (NYSE:SAM) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Boston Beer Company shares surged over 9% after reporting an EPS of $5.45, exceeding the consensus estimate of $4.37.
• The company's revenue for the quarter was $587.95 million, slightly below the consensus estimate of $599.18 million, but represents a 1.5% year-over-year growth.
• Analysts have revised their price targets for Boston Beer shares, with Citigroup lowering their target from $285 to $230 while maintaining a "buy" rating.
• Institutional investors control 81.13% of Boston Beer stock, indicating strong support from market professionals.

The Boston Beer Company, Inc. (NYSE:SAM - Get Free Report) shares gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $201.81, but opened at $222.74. Boston Beer shares last traded at $220.72, with a volume of 112,597 shares changing hands.

The company reported $5.45 earnings per share for the quarter, topping the consensus estimate of $4.37 by $1.08. The business 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%. The firm'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 company earned $4.39 earnings per share.

Wall Street Analyst Weigh In

SAM has been the subject of a number of research analyst reports. 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 research report on Monday, June 23rd. Wall Street Zen lowered Boston Beer from a "buy" rating to a "hold" rating in a research report on Friday, June 27th. Citigroup cut their price target on shares of Boston Beer from $285.00 to $230.00 and set a "buy" rating on the stock in a report on Tuesday, July 15th. Royal Bank Of Canada restated a "sector perform" rating and set a $279.00 price objective on shares of Boston Beer in a report on Tuesday, April 22nd. Finally, Morgan Stanley dropped their target price on shares of Boston Beer from $270.00 to $245.00 and set an "equal weight" rating on the stock in a research note on Friday. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating and two have given a buy rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $258.09.

Institutional Trading of Boston Beer

A number of hedge funds and other institutional investors have recently bought and sold shares of SAM. Rossby Financial LCC purchased a new stake in shares of Boston Beer in the first quarter worth $25,000. Elequin Capital LP purchased a new position in shares of Boston Beer during the first quarter worth about $30,000. GeoWealth Management LLC purchased a new stake in Boston Beer in the fourth quarter valued at approximately $35,000. Caitong International Asset Management Co. Ltd bought a new stake in Boston Beer during the first quarter valued at approximately $44,000. Finally, First Horizon Advisors Inc. grew its stake in Boston Beer by 24.4% in the 1st quarter. First Horizon Advisors Inc. now owns 214 shares of the company's stock worth $51,000 after buying an additional 42 shares in the last quarter. Institutional investors own 81.13% of the company's stock.

Boston Beer Trading Up 0.8%

The stock's fifty day moving average price is $208.79 and its 200 day moving average price is $229.35. The stock has a market cap of $2.34 billion, a P/E ratio of 29.51, a price-to-earnings-growth ratio of 1.58 and a beta of 0.99.

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.