Boston Beer (NYSE:SAM) Shares Gap Up on Better-Than-Expected Earnings

The Boston Beer Company, Inc. (NYSE:SAM)’s stock price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $287.27, but opened at $315.00. Boston Beer shares last traded at $300.83, with a volume of 57,772 shares.

The company reported $1.04 EPS for the quarter, topping the consensus estimate of $0.08 by $0.96. Boston Beer had a net margin of 3.61% and a return on equity of 8.13%. The business had revenue of $426.05 million during the quarter, compared to the consensus estimate of $414.18 million.

Analysts Set New Price Targets

A number of research firms have recently weighed in on SAM. Roth Mkm increased their price target on Boston Beer from $406.00 to $422.00 and gave the stock a “buy” rating in a report on Tuesday, January 23rd. UBS Group cut their target price on Boston Beer from $390.00 to $355.00 and set a “neutral” rating for the company in a research note on Wednesday, February 28th. Morgan Stanley dropped their price objective on Boston Beer from $285.00 to $275.00 and set an “underweight” rating on the stock in a report on Wednesday, February 28th. Royal Bank of Canada restated a “sector perform” rating and set a $337.00 target price on shares of Boston Beer in a research report on Wednesday, February 28th. Finally, The Goldman Sachs Group cut their price target on shares of Boston Beer from $257.00 to $250.00 and set a “sell” rating for the company in a report on Tuesday, April 9th. Two analysts have rated the stock with a sell rating, ten have issued a hold rating and three have given a buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $334.86.

Insider Activity at Boston Beer

In related news, insider Carolyn L. O’boyle sold 102 shares of the company’s stock in a transaction that occurred on Thursday, February 1st. The shares were sold at an average price of $350.72, for a total transaction of $35,773.44. Following the transaction, the insider now owns 2,630 shares of the company’s stock, valued at $922,393.60. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In other news, insider Carolyn L. O’boyle sold 101 shares of the stock in a transaction on Monday, April 1st. The stock was sold at an average price of $303.49, for a total value of $30,652.49. Following the completion of the transaction, the insider now owns 7,029 shares of the company’s stock, valued at $2,133,231.21. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Carolyn L. O’boyle sold 102 shares of the firm’s stock in a transaction that occurred on Thursday, February 1st. The shares were sold at an average price of $350.72, for a total transaction of $35,773.44. Following the transaction, the insider now owns 2,630 shares in the company, valued at approximately $922,393.60. The disclosure for this sale can be found here. Corporate insiders own 23.30% of the company’s stock.

Institutional Investors Weigh In On Boston Beer

Several large investors have recently modified their holdings of SAM. Vanguard Group Inc. raised its stake in shares of Boston Beer by 2.3% during the 4th quarter. Vanguard Group Inc. now owns 918,502 shares of the company’s stock worth $317,425,000 after purchasing an additional 21,060 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Boston Beer by 5.7% in the 4th quarter. Dimensional Fund Advisors LP now owns 142,014 shares of the company’s stock valued at $49,080,000 after purchasing an additional 7,615 shares during the period. AQR Capital Management LLC raised its stake in Boston Beer by 65.9% during the third quarter. AQR Capital Management LLC now owns 115,411 shares of the company’s stock worth $44,433,000 after acquiring an additional 45,864 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in Boston Beer by 3.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 107,312 shares of the company’s stock valued at $37,086,000 after purchasing an additional 3,382 shares during the last quarter. Finally, Northern Trust Corp raised its stake in shares of Boston Beer by 1.9% in the third quarter. Northern Trust Corp now owns 70,324 shares of the company’s stock valued at $27,393,000 after acquiring an additional 1,315 shares during the last quarter. 81.13% of the stock is owned by institutional investors.

Boston Beer Price Performance

The company has a market cap of $3.58 billion, a price-to-earnings ratio of 48.08, a price-to-earnings-growth ratio of 1.20 and a beta of 1.02. The business has a 50 day simple moving average of $306.46 and a 200 day simple moving average of $334.48.

Boston Beer Company Profile

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.