Boston Beer (NYSE:SAM) Shares Gap Up Following Strong 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 before the market opened on Friday following a stronger than expected earnings report. 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 trading hands.

The company reported $5.45 EPS for the quarter, beating the consensus estimate of $4.37 by $1.08. The firm had revenue of $587.95 million for the quarter, compared to the consensus estimate of $599.18 million. Boston Beer had a net margin of 3.30% and a return on equity of 13.81%. The company's revenue was up 1.5% on a year-over-year basis. During the same period last year, the firm earned $4.39 EPS.

Wall Street Analyst Weigh In

Several analysts have recently commented on SAM shares. Citigroup decreased their price objective on shares of Boston Beer from $285.00 to $230.00 and set a "buy" rating on the stock in a research report on Tuesday, July 15th. Morgan Stanley reduced their price target 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. Sanford C. Bernstein reduced their price target on shares of Boston Beer from $270.00 to $230.00 and set a "market perform" rating on the stock in a report on Wednesday, July 9th. Berenberg Bank started coverage on shares of Boston Beer in a report on Wednesday, April 2nd. They issued a "hold" rating and a $281.10 price target on the stock. Finally, The Goldman Sachs Group reduced their price target on shares of Boston Beer from $219.00 to $187.00 and set a "sell" rating on the stock in a report on Monday, June 23rd. One research analyst has rated the stock with a sell rating, ten have given a hold rating and two have given a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $258.83.

Hedge Funds Weigh In On Boston Beer

Institutional investors and hedge funds have recently made changes to their positions in the business. Rossby Financial LCC purchased a new position in shares of Boston Beer in the 1st quarter worth $25,000. GeoWealth Management LLC purchased a new position in shares of Boston Beer in the 4th quarter worth $35,000. Elequin Capital LP purchased a new position in shares of Boston Beer in the 1st quarter worth $30,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Boston Beer in the 1st quarter worth $44,000. Finally, First Horizon Advisors Inc. grew its stake 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 worth $51,000 after buying an additional 42 shares in the last quarter. 81.13% of the stock is owned by hedge funds and other institutional investors.

Boston Beer Trading Up 9.2%

The firm has a market capitalization of $2.46 billion, a PE ratio of 36.95, a PEG ratio of 1.53 and a beta of 0.99. The business's 50 day simple moving average is $210.25 and its 200 day simple moving average is $230.78.

About Boston Beer

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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