(Boston, MA) – The Boston Beer Company’s stock continued its mid-summer free fall, dropping another 8% down to $98 per share in after-market trading, according to Reuters.
The stock reached a 52-week high of $128 per share on July 5th and has dropped over 23% in the four weeks since. $98 per share is the lowest price the stock has seen since March 7th.
Though Boston Beer Co. sales are growing, led by Twisted Tea and Angry Orchard Hard Cider, the company incurred significantly higher costs in the second quarter, taking a profit hit of nearly 50% compared to Q2 2011. The company missed some analysts’ estimates by as much as 17%. Management blamed higher costs on “increases in barley and other ingredients, unfavorable product and package mix and some quarter-specific operational costs.”
According to Marketwatch/FactSet, Chairman, Jim Koch (pictured), had a busy second quarter as well, selling $10.5 million in Boston Beer stock from mid-March to early June. It represents a small fraction of the more-than $400 million in common stock that Koch owns.
*File photo courtesy of The Boston Beer Co.