What happened to Samuel Adams stock?
Shares of Boston Beer fell sharply Friday after the maker of Sam Adams lager said it could report a loss of as much as $1 a share in 2021.
Boston Beer (SAM) Falls on Q2 Earnings Miss, Lowered View
Boston Beer's (SAM) Q2 results have been impacted by declines in shipments and depletions, as well as gross margin contraction. The company lowers the view for 2022.
Currently there's no upside potential for SAM, based on the analysts' average price target.
| Close | Chg | Chg % |
|---|---|---|
| $378.33 | 5.89 | 1.58% |
Out of 13 analysts, 2 (15.38%) are recommending SAM as a Strong Buy, 1 (7.69%) are recommending SAM as a Buy, 8 (61.54%) are recommending SAM as a Hold, 0 (0%) are recommending SAM as a Sell, and 2 (15.38%) are recommending SAM as a Strong Sell.
Sam Adams, a publicly traded company, proved them wrong this week.
Shares of Boston Beer (SAM 6.19%) were down 9.8% as of 12:17 p.m. ET on Friday after the company slashed its full-year earnings guidance. The news follows a sharp slowdown in hard seltzer demand that began last summer, sending Boston Beer's stock price down 51% over the past year.
The culprit: Execs overestimated the potential of the hard seltzer market, which continues to slow amid rising competition and people returning to bars coming out of the COVID-19 pandemic as Yahoo Finance has reported.
In our last article on the Boston Beer Company (NYSE:SAM) in Dec 2020, as the only bearish author for the stock, we argued, that SAM is 33% overvalued. We estimated the fair share value at $600.
Company Overview
The company has a total market share of approximately 8.56 % with a market cap of $5.7 billion.
Will SAM stock go up?
Based on our forecasts, a long-term increase is expected, the "SAM" stock price prognosis for 2027-07-23 is 899.759 USD. With a 5-year investment, the revenue is expected to be around +136.51%. Your current $100 investment may be up to $236.51 in 2027.
SAM does not currently pay a dividend.
| Boston Beer Debt/Equity Ratio Historical Data | ||
|---|---|---|
| Date | Long Term Debt | Shareholder's Equity |
| 2019-06-30 | $0.29B | $0.52B |
| 2019-03-31 | $0.21B | $0.49B |
| 2018-12-31 | $0.18B | $0.46B |
...
Momentum Scorecard. More Info.
| Zacks Rank | Definition | Annualized Return |
|---|---|---|
| 1 | Strong Buy | 24.75% |
| 2 | Buy | 18.15% |
| 3 | Hold | 9.70% |
| 4 | Sell | 5.35% |
American Ownership: In 1995, The Boston Beer Company, Inc. went public, selling shares of Class A Common Stock on the New York Stock Exchange under the symbol SAM. Today, Boston Beer employs more than 2,500 individuals who are as equally passionate as Jim when it comes to rich, full-flavored beer.
Boston Beer Company, maker of Samuel Adams beer, announced on May 9 that it had acquired Dogfish Head Craft Brewed Ales for $300 million. The acquisition brings two of America's most iconic breweries under one roof.
Pabst Brewing Co.
Founded in 1844, Pabst is one of the oldest breweries in the United States and the largest American-owned brewing company.
Samuel Adams is the flagship brand of the Boston Beer Company.
The 13 analysts offering 12-month price forecasts for Boston Beer Company Inc have a median target of 320.00, with a high estimate of 385.00 and a low estimate of 258.00.
According to our Boston Beer stock split history records, Boston Beer has had 0 splits.
Is Boston Beer a good stock?
The stock's ratio of 53.41x is currently well-above the industry average of 33.14x, meaning that it is trading at a more expensive price relative to its peers.
Full-year net revenue of $2.058 billion increased 18.5% compared to 2020. Full-year net income of $14.6 million or $1.17 per share, represented a decrease of $177.4 million or $14.36 per diluted share compared to 2020.
About Boston Beer Company Inc
Its brands include Truly Hard Seltzer, Twisted Tea, Samuel Adams, Angry Orchard, Hard Cider, and Dogfish Head Craft Brewery, as well as other local craft beer brands.
Boston Beer owns brands such as Samuel Adams, Twisted Tea, Truly Hard Seltzer, Angry Orchard Hard Cider and other local craft beer brands.
The Boston Beer Company is an American brewery founded in 1984.
Based on our forecasts, a long-term increase is expected, the "SAM" stock price prognosis for 2027-07-23 is 899.759 USD. With a 5-year investment, the revenue is expected to be around +136.51%. Your current $100 investment may be up to $236.51 in 2027.
The deceleration in demand, or depletions, left Boston Beer with too much inventory on hand. The problem is temporary, but the higher costs from oversupply are now expected to wipe out the company's profit for 2021.
The deceleration in demand, or depletions, left Boston Beer with too much inventory on hand. The problem is temporary, but the higher costs from oversupply are now expected to wipe out the company's profit for 2021.
Will Boston Beer stock go up?
The 13 analysts offering 12-month price forecasts for Boston Beer Company Inc have a median target of 320.00, with a high estimate of 385.00 and a low estimate of 258.00.
Company Overview
The company has a total market share of approximately 8.56 % with a market cap of $5.7 billion.
According to our Boston Beer stock split history records, Boston Beer has had 0 splits.
In our last article on the Boston Beer Company (NYSE:SAM) in Dec 2020, as the only bearish author for the stock, we argued, that SAM is 33% overvalued. We estimated the fair share value at $600.
Samuel Adams is the flagship brand of the Boston Beer Company.
The stock's ratio of 53.41x is currently well-above the industry average of 33.14x, meaning that it is trading at a more expensive price relative to its peers.
The company laid the blame for the disappointing quarter on softer-than-expected demand for hard seltzer. Boston Beer owns Truly Hard Seltzer, one of the top brands in the category, but new competition and slowing growth were among the factors that hurt the brand's sales this quarter.
Boston Beer tossed 'millions of cases' of Truly hard seltzer instead of discounting it, chairman says.
