Goldman: Sell This Flat Beer Stock

Near-term SAM options traders are unusually put-heavy

Managing Editor
Apr 5, 2019 at 11:06 AM
facebook X logo linkedin

Boston Beer Company Inc (NYSE:SAM) is reeling this morning, last seen down 3.9% at $272.79, after Goldman Sachs slammed the beer stock with a downgrade to "sell" from "neutral," and a price-target cut to $245 to $270. The firm said its sees increasing competition negatively impacting sales growth for SAM, and prefers rival Constellation Brands (STZ), which posted an impressive earnings beat after yesterday's close. 

Today's downgrade is far from a surprise for Boston Beer stock. Coming into today, six of the seven covering firms sported "hold" or "strong sell" ratings. Plus, SAM's average 12-month target price of $278.58 is relatively underwhelming, as it comes in flat with current trading levels.     

Digging deeper, the equity's Schaeffer's put/call open interest ratio (SOIR) of 2.03 ranks in the 95th annual percentile. This suggests that near-term options traders are more put-biased than usual right now, with peak open interest currently found at the out-of-the-money April 300 put.

On the charts, SAM entered 2019 trading near $240, and eventually topped out at north of $320 in mid-March. Boston Beer stock has been pulling back since, and breached short-term support at its 200-day moving average earlier this week. Today's drop has the equity testing the $270 region, home to its 80-day moving average and a its late-February pre-bull gap levels.



Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI