What Happened?
Shares of alcohol company Brown-Forman (NYSE: BF.B) jumped 2.7% in the afternoon session after the company announced that its Woodford Reserve brand would re-release its highly sought-after Double Double Oaked Bourbon.
The product, described as one of the most coveted bottles in American whiskey, became available for a national release. This positive news appeared to outweigh a less optimistic view from Citigroup. The bank maintained its sell rating on Brown-Forman's stock and lowered its price target to $24 from $27. The stock's upward movement suggested that investors focused more on the potential sales boost from the popular whiskey than on the analyst's revised valuation.
The shares closed the day at $27.20, up 3.2% from previous close.
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What Is The Market Telling Us
Brown-Forman’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 28 days ago when the stock dropped 5.8% on the news that Citigroup downgraded the stock to "Sell" from "Neutral" and lowered its price target. The bank also cut its price target on the shares to $27 from $30. This adjustment implied a more cautious outlook on the stock's future performance. The downgrade from the financial institution signaled concerns about the beverage company's prospects, which prompted the negative investor reaction.
Brown-Forman is up 4% since the beginning of the year, but at $27.20 per share, it is still trading 28.4% below its 52-week high of $37.96 from March 2025. Investors who bought $1,000 worth of Brown-Forman’s shares 5 years ago would now be looking at an investment worth $370.20.
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