On May 22, 2023, David Burwick, President and CEO of Boston Beer Co Inc (SAM, Financial), sold 1644 shares of the company's stock. This move comes amidst a year of insider selling activity for the company, with no insider buys recorded over the past year.
Who is David Burwick?
David Burwick has been the President and CEO of Boston Beer Co Inc since April 2018. With over 30 years of experience in the consumer products industry, Burwick has held various leadership positions at companies such as PepsiCo and Weight Watchers. His extensive experience and knowledge of the industry have been instrumental in driving growth and innovation at Boston Beer Co Inc.
About Boston Beer Co Inc
Boston Beer Co Inc, founded in 1984 by Jim Koch, is a leading American craft brewer and the producer of the well-known Samuel Adams beer brand. The company is also involved in the production of other alcoholic beverages, including hard cider, hard seltzer, and hard tea. With a focus on innovation and quality, Boston Beer Co Inc has grown to become one of the largest craft brewers in the United States.
Insider Trading Analysis
Over the past year, David Burwick has sold a total of 1644 shares and purchased 0 shares. The insider transaction history for Boston Beer Co Inc shows that there have been 0 insider buys in total over the past year, while there have been 11 insider sells during the same period. This trend may indicate that insiders believe the stock is overvalued or that they are taking profits after a period of growth.
Stock Price and Valuation
On the day of David Burwick's recent sale, shares of Boston Beer Co Inc were trading at $326.38 apiece, giving the stock a market cap of $3,892.209 million. The price-earnings ratio is 65.27, which is higher than the industry median of 22.27 and higher than the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and its historical valuation.
However, with a price of $326.38 and a GuruFocus Value of $494.76, Boston Beer Co Inc has a price-to-GF-Value ratio of 0.66. This means the stock is significantly undervalued based on its GF Value. The discrepancy between the price-earnings ratio and the price-to-GF-Value ratio may be due to differing methodologies in calculating valuation or market inefficiencies.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider sell by David Burwick, along with the overall trend of insider selling at Boston Beer Co Inc, may raise concerns for investors. However, the stock's price-to-GF-Value ratio suggests that it is significantly undervalued, which could present a buying opportunity for those who believe in the company's long-term prospects. As always, investors should conduct their own research and consider multiple factors before making any investment decisions.
