The Boston Beer Company, Inc. (SAM): Why It Fell -5.07% Today, And What Comes Next

Big changes are happening at The Boston Beer Company, Inc. (NYSE:SAM), which makes the stock worth watching today. The company is among the top losers of the stock market today, sinking -5.07% or (-20.27 points) to $379.61 from its previous close of $399.88. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 176069 contracts so far this session. SAM shares had a relatively better volume day versus average trading capacity of 181.42 thousand shares, but with a 8.87 million float and a -8.79% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for SAM stock indicates that the average analyst price target is $361.83 per share. This means the stock has a potential decrease of -4.68% from where the SAM share price has been trading recently which is between $393.62 and $405.8. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $270.

The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “White Claw, Truly and other hard seltzers could take a hit from Sober September” and dated September 10, 2019.

During the recent trading session for The Boston Beer Company, Inc. (NYSE:SAM), the company witnessed their stock drop by $-29.5 over a week and tumble down $-20.94 from the price 20 days ago. When compared to their established 52-week high of $444.64, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 08/27/19. The recent low of $230.93 stood for a -14.63% since 01/04/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.64 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for The Boston Beer Company, Inc., the two-week RSI stands at 33.81. This figure suggests that SAM stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current SAM readings is similarly very revealing as it has a stochastic reading of 8.51% at this stage. This figure means that SAM share price today is being overbought.

Technical chart claims that The Boston Beer Company, Inc. (SAM) would settle between $405.91/share to $411.95/share level. However, if the stock price goes below the $393.73 mark, then the market for The Boston Beer Company, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $387.59 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -18.88. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Jefferies lowered their recommendation on shares of SAM from Hold to Underperform in their opinion released on September 03. Macquarie analysts bumped their rating on The Boston Beer Company, Inc. (NYSE:SAM) stock from Neutral to Outperform in a separate flash note issued to investors on August 07. Analysts at Guggenheim are sticking to their Buy stance. However, on July 12, they lifted price target for these shares to $421 from $372.

SAM equity has an average rating of 2.86, with the figure leaning towards a bullish end. 7 analysts who tracked the company were contacted by Reuters. Amongst them, 3 rated the stock as a hold while the remaining 4 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 2 analysts rated The Boston Beer Company, Inc. (NYSE:SAM) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, SAM stock price is currently trading at 35.93X forward 12-month Consensus EPS estimates, and its P/E ratio is 43.18 while for the average stock in the same group, the multiple is 21.52. The Boston Beer Company, Inc. current P/B ratio of 8.85 means it is trading at a premium against its industry’s 3.03.

The Boston Beer Company, Inc. (SAM)’s current-quarter revenues are projected to climb by nearly 4.39% to hit $341200, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 18.22% from $1.02 billion to a noteworthy $1.2 billion. At the other end of the current quarter income statement, The Boston Beer Company, Inc. is expected to see its adjusted earnings surge by roughly -19.31% to hit $2.59 per share. For the fiscal year, SAM’s earnings are projected to climb by roughly 19.41% to hit $8.92 per share.