Boston Beer (NYSE:SAM) Shares Up 8.9% - Time to Buy?

Key Points

• Boston Beer shares jumped 8.9% to about $219.15 in mid-day trading, above the consensus analyst price target of $208.82.
• Analyst sentiment remains cautious: the stock has one Buy, nine Hold, and two Sell ratings, resulting in a consensus “Reduce” rating.
• The company beat quarterly EPS estimates, reporting $4.37 versus $4.21 expected, but revenue fell 3.2% year over year to $520.1 million and net margin remained negative.

The Boston Beer Company, Inc. (NYSE:SAM - Get Free Report)'s share price was up 8.9% during mid-day trading on Monday. The stock traded as high as $219.05 and last traded at $219.1480. Approximately 199,279 shares traded hands during mid-day trading, a decline of 16% from the average session volume of 237,430 shares. The stock had previously closed at $201.31.

Wall Street Analyst Weigh In

SAM has been the topic of a number of analyst reports. Zacks Research upgraded shares of Boston Beer from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 22nd. UBS Group upped their price objective on Boston Beer from $190.00 to $204.00 and gave the company a "neutral" rating in a research note on Friday, October 23rd. Wall Street Zen upgraded shares of Boston Beer from a "sell" rating to a "hold" rating in a research report on Saturday, July 25th. Roth Capital restated a "buy" rating and set a $295.00 price objective (down from $315.00) on shares of Boston Beer in a research report on Friday, July 24th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Boston Beer in a research report on Friday. One equities research analyst has rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Boston Beer has a consensus rating of "Reduce" and a consensus price target of $208.82.

Boston Beer Price Performance

The firm's fifty day simple moving average is $177.02 and its 200 day simple moving average is $199.02. The company has a market capitalization of $2.25 billion, a price-to-earnings ratio of -32.43 and a beta of 0.81.

Boston Beer (NYSE:SAM - Get Free Report) last released its earnings results on Thursday, October 22nd. The company reported $4.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.21 by $0.16. Boston Beer had a positive return on equity of 10.40% and a negative net margin of 3.59%. The company had revenue of $520.10 million during the quarter, compared to analyst estimates of $522.95 million. During the same quarter in the prior year, the company earned $4.25 earnings per share. The company's revenue for the quarter was down 3.2% on a year-over-year basis. Equities research analysts forecast that The Boston Beer Company, Inc. will post 9.28 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Boston Beer

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SAM. PNC Financial Services Group Inc. increased its holdings in shares of Boston Beer by 18.0% during the 1st quarter. PNC Financial Services Group Inc. now owns 439 shares of the company's stock valued at $101,000 after acquiring an additional 67 shares during the last quarter. Signaturefd LLC raised its stake in shares of Boston Beer by 42.1% in the third quarter. Signaturefd LLC now owns 253 shares of the company's stock valued at $41,000 after purchasing an additional 75 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of Boston Beer by 23.3% during the 1st quarter. EverSource Wealth Advisors LLC now owns 423 shares of the company's stock worth $97,000 after acquiring an additional 80 shares during the period. Sage Private Wealth Group LLC boosted its holdings in Boston Beer by 5.7% during the third quarter. Sage Private Wealth Group LLC now owns 1,680 shares of the company's stock valued at $276,000 after purchasing an additional 91 shares in the last quarter. Finally, State of Michigan Retirement System grew its position in Boston Beer by 5.6% in the first quarter. State of Michigan Retirement System now owns 1,883 shares of the company's stock valued at $434,000 after acquiring an additional 100 shares during the period. Institutional investors own 81.13% of the company's stock.

Boston Beer Company Profile

Boston Beer Company, Inc is an American beverage company that develops, produces, and sells alcoholic beverages. The company is best known for its Samuel Adams craft beer brand, which includes Boston Lager and a range of seasonal, specialty, and limited-release beers.

Its portfolio also includes Twisted Tea hard iced tea, Truly Hard Seltzer, Angry Orchard hard cider, and beverages associated with Dogfish Head, which Boston Beer acquired in 2019. The company offers products across several categories, including beer, flavored malt beverages, hard seltzer, and hard cider, with offerings distributed primarily through wholesalers, retailers, restaurants, and other on-premise establishments.

Founded in 1984 by Jim Koch, Boston Beer helped expand the U.S.

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