Boston Beer Company Inc (NYSE:SAM) insider has lately joined an insider trading activity. Chairman, KOCH C JAMES sold 15,000 shares for $2,529,836 via through transaction Dec 15. Following the transaction, the insider now holds 35,500 shares in the company, priced at $6043875 as of Friday. Additional notable insider trading was performed by the same insider on Dec 14. KOCH C JAMES Sold 15,000 shares with $169.91 as the average price of common stock. That amounts to $2,548,647 in total. Apart from this, this insider carried out a sale of 15,000 shares at $170.84 per share on Dec 13. The transaction was worth $2,562,653. The insider also sold 15,000 shares for $2,564,801 via one transaction Dec 12.
The stock has seen a count of 30 insider trades in the past 3 months. These transactions include 25 sell trades and 5 buy activities. Furthermore, over the past 12 months, insider traded the stock on 93 occasions. In 80 instances, an employee was a seller while the insider of the company was the buyer in just 13 times.
Boston Beer Company Inc (SAM) on October 21, 2016 reported third quarter 2016 net revenue of $253.4 million, a decrease of $39.7 million or 14% from the third quarter of 2015, mainly due to a decline in shipments of 12% and decreased revenue per barrel due to product mix. Net income for the third quarter was $31.5 million, or $2.48 per diluted share, a decrease of $0.37 per diluted share from the third quarter of 2015. This decrease was primarily due to decreases in net revenue and a decrease in gross margin, partially offset by decreased advertising, promotional and selling expenses.
Earnings per diluted share for the 39-week period ended September 24, 2016 were $5.05, a decrease of $0.97 from the comparable 39-week period in 2015. Net revenue for the 39-week period ended September 24, 2016 was $687.1 million, a decrease of $57.7 million, or 8%, from the comparable 39-week period in 2015.
Highlights of this release include:
- Depletions decreased 8% and 6% from the comparable 13 and 39 week periods in 2015.
- Third quarter gross margin was 52.7% and year-to-date gross margin was 51.2%; with the Company maintaining its full-year gross margin target of between 50% and 52%.
- Advertising, promotional and selling expense decreased by $14.4 million or 18% in the third quarter, primarily due to lower media spending and decreases in freight to distributors, as a result of lower volume and lower freight rates.
- The 2016 fiscal year includes 53 weeks compared to the 2015 fiscal year, which included only 52 weeks.
- Full-year 2016 year over year depletion and shipment change is now estimated at between minus 6% and minus 2%, a decrease of the range from the previously communicated estimate of between minus 4% and zero.
- Full-year 2016 earnings per diluted share are now estimated at between $6.30 and $6.70, a decrease and narrowing of the range from the previously communicated estimate of $6.40 to $7.00.
- Full-year 2016 capital spending is now estimated to be between $55 million and $65 million, a decrease of the range from the previously communicated estimate of $60 million to $70 million.
Jim Koch, Chairman and Founder of the Company, commented, “Our total company depletion trends declined in the third quarter at a slightly faster rate as we lapped new beer launches from last year, and we saw a further slowdown in growth across the Craft brewing industry. I am energized by our team’s plans to return Samuel Adams to growth, that include investments in new packaging, new beers, a fifth seasonal and enhanced drinker communication. We continue to believe that we are well positioned to meet the challenges of this competitive environment, because of the quality of our employees, our beers, our innovation capability and our sales execution strength. Our strong financial position enables us to invest in growing our brands and creating new growth opportunities. A major packaging update for Samuel Adams Boston Lager has already shipped, to be followed by new Seasonal and Rebel packaging by the end of the fourth quarter, and we also expect to complete the national draft launch of Samuel Adams Rebel Juiced, a tropical IPA featuring citrusy hops in late October. In the early part of 2017, we are reimagining our seasonal program by adding two new beers; Samuel Adams Hopscape, a 30 IBU wheat ale with four types of West Coast hops for January and February 2017, and Samuel Adams Fresh as Helles, a helles lager with orange blossom petals for February and March 2017. We remain confident about the long-term outlook for the craft category and our Samuel Adams brand.”