Boston Beer (NYSE:SAM) Stock Crosses Below 200-Day Moving Average - Should You Sell?

Key Points

• Boston Beer shares fell below their 200-day moving average, trading as low as $194.68 versus the $199.10 average, a technical signal that may concern investors.
• Analyst sentiment is cautious: the stock has a consensus “Reduce” rating, with nine Holds, two Sells, and one Buy, while the average price target is $208.82. Recent target cuts included RBC to $190 and Goldman Sachs to $169.
• Boston Beer beat quarterly EPS estimates ($4.37 versus $4.21) but missed revenue expectations, with sales falling 3.2% year over year and the company reporting a negative net margin of 3.59%.

Shares of The Boston Beer Company, Inc. (NYSE:SAM - Get Free Report) crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $199.10 and traded as low as $194.68. Boston Beer shares last traded at $197.55, with a volume of 194,137 shares trading hands.

Analysts Set New Price Targets

SAM has been the subject of a number of recent research reports. Royal Bank Of Canada decreased their price objective on Boston Beer from $210.00 to $190.00 and set a "sector perform" rating for the company in a report on Tuesday, October 6th. Roth Capital restated a "buy" rating and issued a $295.00 target price (down from $315.00) on shares of Boston Beer in a report on Friday, July 24th. The Goldman Sachs Group dropped their target price on Boston Beer from $192.00 to $169.00 and set a "sell" rating on the stock in a report on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft set a $176.00 target price on Boston Beer in a research report on Friday, July 24th. Finally, Zacks Research upgraded Boston Beer from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 22nd. One analyst has rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $208.82.

Boston Beer Price Performance

The firm's fifty day moving average is $176.60 and its two-hundred day moving average is $199.10. The firm has a market capitalization of $2.06 billion, a PE ratio of -28.92 and a beta of 0.82.

Boston Beer (NYSE:SAM - Get Free Report) last posted its quarterly earnings data on Thursday, October 22nd. The company reported $4.37 EPS for the quarter, beating the consensus estimate of $4.21 by $0.16. The firm had revenue of $520.10 million during the quarter, compared to analyst estimates of $522.95 million. Boston Beer had a negative net margin of 3.59% and a positive return on equity of 10.40%. The company's revenue for the quarter was down 3.2% on a year-over-year basis. During the same quarter last year, the business posted $4.25 EPS. As a group, equities research analysts predict that The Boston Beer Company, Inc. will post 9.18 EPS for the current fiscal year.

Hedge Funds Weigh In On Boston Beer

Several institutional investors have recently modified their holdings of the business. IFP Advisors Inc grew its stake in Boston Beer by 333.3% in the 2nd quarter. IFP Advisors Inc now owns 156 shares of the company's stock valued at $28,000 after purchasing an additional 120 shares during the period. Ascentis Independent Advisors purchased a new stake in shares of Boston Beer during the 1st quarter valued at $37,000. Plato Investment Management Ltd purchased a new stake in shares of Boston Beer during the 2nd quarter valued at $35,000. Sterling Capital Management LLC raised its stake in shares of Boston Beer by 223.5% during the 3rd quarter. Sterling Capital Management LLC now owns 220 shares of the company's stock worth $36,000 after purchasing an additional 152 shares during the period. Finally, Pinnacle Wealth Planning Services Inc. raised its stake in shares of Boston Beer by 22,300.0% during the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 224 shares of the company's stock worth $37,000 after purchasing an additional 223 shares during the period. 81.13% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.