Boston Beer (SAM) Upgraded to “Strong-Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Boston Beer (NYSE:SAM) from a hold rating to a strong-buy rating in a research report released on Thursday morning. They currently have $221.00 price objective on the stock.

According to Zacks, “Boston Beer, which has outperformed the industry in last three months, posted solid third-quarter 2017 with both earnings and sales surpassing estimates. While this was the company’s fourth-straight earnings beat, sales topped estimates for the second-consecutive quarter. Earnings gained from enhanced gross margin and lower operating costs owing to cost saving initiatives. We remain encouraged by Boston Beer’s three-point growth plan focused on revival of Samuel Adams and Angry Orchard brands, cost-saving initiatives and long-term innovation. The company's focus on pricing, product innovation and brand development are also likely to boost operational performance and market position. Moreover, the company’s brand-building efforts and initiatives to add new products remain key revenue drivers. However, results continue to be hurt by soft depletion trends owing to weakness in Samuel Adams, soft craft beer and cider categories.”

A number of other equities analysts also recently issued reports on the company. Citigroup upped their price target on Boston Beer from $165.00 to $181.00 and gave the company a neutral rating in a report on Monday, October 30th. Credit Suisse Group upped their price target on Boston Beer from $151.00 to $160.00 and gave the company a neutral rating in a report on Friday, October 27th. UBS Group downgraded Boston Beer from a positive rating to a neutral rating in a report on Monday, November 13th. Stifel Nicolaus started coverage on Boston Beer in a report on Tuesday, December 5th. They issued a hold rating and a $166.00 price target for the company. Finally, Berenberg Bank raised Boston Beer from a sell rating to a hold rating in a report on Monday, December 18th. Three investment analysts have rated the stock with a sell rating, nine have given a hold rating and one has given a strong buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average target price of $158.55.

Shares of Boston Beer (NYSE SAM) traded down $2.15 during trading on Thursday, hitting $190.50. The stock had a trading volume of 134,300 shares, compared to its average volume of 123,689. Boston Beer has a 1-year low of $128.70 and a 1-year high of $197.05. The firm has a market capitalization of $2,240.00, a P/E ratio of 25.99, a PEG ratio of 5.44 and a beta of 0.58.

Boston Beer (NYSE:SAM) last announced its quarterly earnings results on Thursday, October 26th. The company reported $2.78 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.99 by $0.79. The firm had revenue of $247.04 million during the quarter, compared to the consensus estimate of $256.73 million. Boston Beer had a return on equity of 21.11% and a net margin of 9.97%. The firm’s quarterly revenue was down 2.5% compared to the same quarter last year. During the same period in the prior year, the company posted $2.48 earnings per share. equities analysts forecast that Boston Beer will post 6.22 earnings per share for the current fiscal year.

In other news, VP David L. Grinnell sold 1,000 shares of the company’s stock in a transaction that occurred on Tuesday, December 26th. The stock was sold at an average price of $195.00, for a total transaction of $195,000.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CMO Jonathan N. Potter sold 439 shares of the company’s stock in a transaction that occurred on Tuesday, October 31st. The stock was sold at an average price of $171.90, for a total value of $75,464.10. The disclosure for this sale can be found here. In the last quarter, insiders sold 46,420 shares of company stock valued at $8,753,757. 28.50% of the stock is owned by company insiders.

Several institutional investors have recently added to or reduced their stakes in the company. Confluence Investment Management LLC raised its stake in shares of Boston Beer by 2.2% during the fourth quarter. Confluence Investment Management LLC now owns 27,257 shares of the company’s stock worth $5,208,000 after purchasing an additional 575 shares during the last quarter. Public Employees Retirement System of Ohio raised its stake in shares of Boston Beer by 233.3% during the third quarter. Public Employees Retirement System of Ohio now owns 1,640 shares of the company’s stock worth $256,000 after purchasing an additional 1,148 shares during the last quarter. Algert Global LLC purchased a new stake in shares of Boston Beer during the third quarter worth approximately $2,442,000. Sterling Capital Management LLC purchased a new position in Boston Beer in the third quarter worth $740,000. Finally, California Public Employees Retirement System raised its position in Boston Beer by 2.9% in the third quarter. California Public Employees Retirement System now owns 10,800 shares of the company’s stock worth $1,687,000 after acquiring an additional 300 shares in the last quarter. Institutional investors and hedge funds own 76.06% of the company’s stock.

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About Boston Beer

The Boston Beer Company, Inc is a craft brewer in the United States. The Company is engaged in the business of producing and selling alcohol beverages primarily in the domestic market and in selected international markets. The Company operates through two segments: Boston Beer Company segment, and A&S Brewing Collaborative segment.

Analyst Recommendations for Boston Beer (NYSE:SAM)

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