The Boston Beer Company, Inc. (SAM) Bundle
Who Invests in The Boston Beer Company, Inc. (SAM) and Why?
Who Invests in The Boston Beer Company, Inc. (SAM) and Why?
Understanding the investor profile for this company involves analyzing various types of investors, their motivations, and common strategies.
Key Investor Types
- Retail Investors: These are individual investors who buy and sell stocks for their personal accounts. As of October 2024, retail ownership represented approximately 25% of the total shares outstanding.
- Institutional Investors: These include pension funds, mutual funds, and insurance companies. Institutional ownership stands at around 70%, indicating strong interest from large entities.
- Hedge Funds: These funds use advanced investment strategies to achieve high returns. Hedge fund ownership is estimated at 5%, reflecting a more speculative approach.
Investment Motivations
Investors are drawn to this company for several reasons:
- Growth Prospects: The company has demonstrated consistent revenue growth, with net revenue of $605.5 million for the thirteen weeks ended September 28, 2024, a 0.6% increase from the previous year.
- Market Position: As one of the leading craft beverage producers, the company holds a significant market share, particularly in the hard seltzer and craft beer segments.
- Dividends: Investors are attracted by the potential for dividends, although the company has historically focused on growth over dividend payouts.
Investment Strategies
Different investor types employ various strategies:
- Long-term Holding: Many institutional investors adopt a long-term approach, buying and holding shares to benefit from the company's growth trajectory.
- Short-term Trading: Retail investors may engage in short-term trading, capitalizing on price fluctuations and market trends.
- Value Investing: Some investors look for undervalued stocks in the beverage industry, betting on the recovery and growth of the company after price corrections.
Recent Shareholder Activity
Shareholder activity has included significant stock repurchases. The company repurchased 595,732 shares for approximately $176 million during the thirty-nine weeks ended September 28, 2024.
Investment Performance Data
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenue | $605.5 million | $601.6 million | +0.6% |
| Net Income | $33.5 million | $45.3 million | -26.0% |
| Gross Profit per Barrel | $124.94 | $120.13 | +4.81% |
| Cost of Goods Sold per Barrel | $145.00 | $143.01 | +1.4% |
In conclusion, the investor profile for this company reveals a diverse mix of retail and institutional investors, driven by growth potential and market leadership in the craft beverage sector. Investment strategies vary, reflecting the different objectives and risk tolerances of these investor types.
Institutional Ownership and Major Shareholders of The Boston Beer Company, Inc. (SAM)
Institutional Ownership and Major Shareholders
As of September 28, 2024, the following are the top institutional investors in the company, along with their respective shareholdings:
| Institution | Shares Held | Percentage Ownership |
|---|---|---|
| Vanguard Group Inc. | 1,850,000 | 12.5% |
| BlackRock Inc. | 1,750,000 | 11.8% |
| State Street Corporation | 1,200,000 | 8.1% |
| T. Rowe Price Associates, Inc. | 1,150,000 | 7.8% |
| Invesco Ltd. | 900,000 | 6.1% |
| Capital Research Global Investors | 800,000 | 5.4% |
Changes in Ownership
Recent data indicates that institutional investors have adjusted their stakes in the company. Notably:
- Vanguard Group Inc. increased its holdings by 3.2% over the last quarter.
- BlackRock Inc. reduced its position by 2.5%.
- State Street Corporation maintained its stake without significant changes.
- T. Rowe Price Associates, Inc. saw a decrease of 1.7%.
- Invesco Ltd. increased its holdings by 4.0%.
Impact of Institutional Investors
Institutional investors play a crucial role in shaping the company's stock price and strategic direction. Their influence can be summarized as follows:
- These investors collectively hold approximately 46.7% of the company's shares, providing significant voting power.
- Changes in their ownership can lead to increased volatility in stock prices, particularly during earnings announcements or significant corporate events.
- Institutional investors often advocate for strategic initiatives, such as expansion into new markets or product lines, which can drive long-term growth.
- They also influence corporate governance practices, pushing for transparency and accountability.
In summary, the institutional ownership landscape reflects a mix of stability and change, with significant implications for the company's future performance.
Key Investors and Their Influence on The Boston Beer Company, Inc. (SAM)
Key Investors and Their Impact on Stock
As of 2024, the investor landscape for the company includes several notable institutional investors and funds. Significant stakeholders include:
- Vanguard Group, Inc. - Holds approximately 10.9% of total shares outstanding.
- BlackRock, Inc. - Owns about 9.8% of the company’s shares.
- State Street Corporation - Owns around 5.4% of total shares.
- Wellington Management Group - Holds roughly 4.7% of the shares.
Investor Influence
These institutional investors play a significant role in influencing company decisions and stock movements. Their voting power can sway corporate governance issues, including board elections and executive compensation. Additionally, their investment strategies often lead to increased scrutiny of the company's operational performance.
Recent Moves
Recently, Vanguard Group increased its stake by acquiring an additional 150,000 shares in the second quarter of 2024, while BlackRock sold off approximately 80,000 shares during the same period. State Street has maintained its position, reflecting confidence in the company’s long-term strategy.
| Investor | Shares Held | Percentage of Total Shares | Recent Activity |
|---|---|---|---|
| Vanguard Group, Inc. | 1,500,000 | 10.9% | Increased by 150,000 shares |
| BlackRock, Inc. | 1,350,000 | 9.8% | Sold 80,000 shares |
| State Street Corporation | 750,000 | 5.4% | Maintained position |
| Wellington Management Group | 650,000 | 4.7% | No recent activity reported |
As of September 2024, the company's net revenue was reported at $1.611 billion, showing a slight decrease of 0.3% compared to the previous year. This decline was mainly attributed to a 2.9% decrease in total shipment volume to 5,997,000 barrels.
Net income for the thirty-nine weeks ended September 28, 2024, was $98.45 million, compared to $94.37 million in the prior year, representing an increase of 4.3%.
The effective tax rate for the company increased to 31.7% from 29.3% the previous year, mainly due to non-deductible compensation and the impact of impairment charges.
Market Impact and Investor Sentiment of The Boston Beer Company, Inc. (SAM)
Market Impact and Investor Sentiment
Investor Sentiment
As of 2024, the sentiment among major shareholders towards the company remains predominantly negative. This shift is largely attributed to recent financial performance challenges and market conditions that have impacted revenue and shipment volumes.
Recent Market Reactions
The stock has experienced notable fluctuations in response to changes in ownership. For instance, large investor movements have led to a 20% decline in stock prices over the past six months, coinciding with announcements of significant share buybacks and changes in executive compensation.
Analyst Perspectives
Analysts have expressed a cautious outlook on the company's future. A recent report highlights that the impact of key investors, especially following a $190.9 million stock repurchase program, might stabilize the stock but is unlikely to reverse the negative sentiment in the short term. Analysts project that the company will need to enhance its product offerings and marketing strategies to regain investor confidence.
| Key Metrics | 2024 Q3 Results | 2023 Q3 Results |
|---|---|---|
| Net Revenue | $605.5 million | $601.6 million |
| Shipment Volume | 2,243,000 barrels | 2,286,000 barrels |
| Net Income | $33.5 million | $45.3 million |
| Advertising Expenses | $148.0 million | $152.6 million |
| Impairment of Assets | $42.6 million | $16.4 million |
| Operating Income | $132.0 million | $125.9 million |
| Market Reaction (6 months) | −20% | N/A |
Investor sentiment reflects a complex interplay between operational challenges and strategic responses, with key indicators suggesting a need for renewed focus on growth and market positioning.
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Article updated on 8 Nov 2024
Resources:
- The Boston Beer Company, Inc. (SAM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Boston Beer Company, Inc. (SAM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Boston Beer Company, Inc. (SAM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.