Green Mountain Falls On Lower Earnings Estimates
Shares of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) were lower on Friday, July 13, after a Stifel Nicolaus analyst lowered his earnings estimate for the company due to the growing demand for single-serve coffee machines, according to Reuters.
It appears Green Mountain company officials may have been privy to this information before it was made public, as they filed insider trades with the SEC that amounted to hundreds of millions of dollars.
According to the media outlet, analyst Mark Astrachan slashed his earnings estimate for fiscal 2013 to $1.80 per share from an earlier projection of $2.27. The analyst added that Green Mountain will likely soon see mounting competition as its patent on being the signature K-Cup for Keurig Brewers expires in September.
"A few pennies of reduced pricing has a meaningfully negative impact on earnings, assuming no material change in input costs," he wrote in a research note.
Green Mountain shares finished 7.38 percent lower on Friday, at $19.70.
The fall was most likely anticipated by company officials, with $137.25 million worth of stock sold in the last three months.
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