Boston Beer Company, Inc. (The) (SAM) shares fall following downgrade at William Blair

Boston Beer Company, Inc. (The) (NYSE: SAM) shares fell in early trading yesterday lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.

The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.

Shares of Boston Beer Company, Inc. (The) (NYSE: SAM) were downgraded by analysts at William Blair in a note to their investors today. The company currently has a rating of Market Perform on the shares. As a means of comparison, a number of other analysts have issued reports on the company recently, and Boston Beer Company, Inc. (The) has earned a consensus one-year price target of $153.00, lower than the opening price of $164.45. Boston Beer Company, Inc. (The) stock has a 52-week high of $202.77. Downgrades occur when analysts feel that the future prospects for the security have weakened from the original recommendation, usually caused by an important and crucial change in the company’s operations, future direction or industry.

Shares of Boston Beer Company, Inc. (The) (NYSE: SAM) opened at $164.45 yesterday and traded in a range between, $159.05 and $167.10, and last traded at $159.45, a decrease of $11.90 from the previous closing price.

Boston Beer Company, Inc. (The) (NYSE: SAM) now has a market cap of 1.98B.

Boston Beer Company, Inc. (The) (NYSE: SAM) Average Daily Trading Volume

The stock’s average daily volume is 183,890 shares out of a total float 7,925,000 and some 65,256 shares crossed the trading desk yesterday, 66 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.

However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.

Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these have substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.

Boston Beer Company, Inc. (The) (NYSE: SAM) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.

With that in mind, Boston Beer Company, Inc. (The) (NYSE: SAM) now has a 50-day MA of $171.81 and 200-day MA of $169.72. It has traded in a 52-week range between $145.30 – 202.77 and today’s last price is 21.36%% lower than the 52 week high of $202.77.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings by at least 25% over a 3 year period.

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