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. Zacks Investment Research currently has $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.”
Several other research firms have also recently issued reports on SAM. Credit Suisse Group upgraded Boston Beer from an underperform rating to a neutral rating and raised their price objective for the stock from $140.00 to $150.00 in a report on Tuesday, September 26th. Macquarie started coverage on Boston Beer in a research report on Thursday, September 14th. They issued an underperform rating and a $140.00 target price on the stock. Berenberg Bank raised Boston Beer from a sell rating to a hold rating in a research report on Monday, December 18th. TheStreet raised Boston Beer from a c+ rating to a b- rating in a research report on Thursday, November 2nd. Finally, Jefferies Group reaffirmed a hold rating and issued a $175.00 target price on shares of Boston Beer in a research report on Thursday, January 4th. Three equities research 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 company has a consensus rating of Hold and an average target price of $158.55.
Boston Beer (NYSE:SAM) last posted its quarterly earnings data on Thursday, October 26th. The company reported $2.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.99 by $0.79. Boston Beer had a return on equity of 21.11% and a net margin of 9.97%. The business had revenue of $247.04 million for the quarter, compared to analysts’ expectations of $256.73 million. During the same quarter last year, the firm earned $2.48 earnings per share. The business’s revenue was down 2.5% on a year-over-year basis. equities research analysts predict that Boston Beer will post 6.22 EPS for the current fiscal year.
In related news, CMO Jonathan N. Potter sold 439 shares of the stock in a transaction on Tuesday, October 31st. The stock was sold at an average price of $171.90, for a total value of $75,464.10. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP David L. Grinnell sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, December 26th. The shares were sold at an average price of $195.00, for a total value of $195,000.00. The disclosure for this sale can be found here. Insiders sold a total of 46,420 shares of company stock worth $8,753,757 over the last ninety days. Corporate insiders own 28.50% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in SAM. JPMorgan Chase & Co. raised its position in Boston Beer by 443.2% in the third quarter. JPMorgan Chase & Co. now owns 118,251 shares of the company’s stock valued at $18,802,000 after purchasing an additional 96,481 shares during the period. Prudential Financial Inc. raised its position in Boston Beer by 104.8% in the third quarter. Prudential Financial Inc. now owns 132,762 shares of the company’s stock valued at $20,738,000 after purchasing an additional 67,940 shares during the period. Ameriprise Financial Inc. raised its position in Boston Beer by 147.8% in the second quarter. Ameriprise Financial Inc. now owns 81,738 shares of the company’s stock valued at $10,801,000 after purchasing an additional 48,757 shares during the period. Arlington Value Capital LLC purchased a new position in Boston Beer in the second quarter valued at about $6,311,000. Finally, Apertura Capital LLC purchased a new position in Boston Beer in the third quarter valued at about $5,311,000. 76.06% of the stock is currently owned by institutional investors.
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.
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