Oppenheimer Issues Positive Forecast for Sweetgreen (NYSE:SG) Stock Price

Key Points

• Oppenheimer raised Sweetgreen’s price target from $8.50 to $14.00 and maintained an “outperform” rating, implying 13.9% upside from the previous close.
• Analyst views remain mixed: six rate the stock Buy, nine Hold, and three Sell; the consensus rating is “Hold” with an average target of $9.76.
• Quarterly revenue rose 2.1% year over year to $176.02 million, beating estimates, while Sweetgreen’s $0.26-per-share loss matched consensus. Same-store sales were still declining, though the drop improved from the prior year.

Sweetgreen (NYSE:SG - Get Free Report) had its price objective increased by equities research analysts at Oppenheimer from $8.50 to $14.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Oppenheimer's target price would suggest a potential upside of 13.90% from the stock's previous close.

Other research analysts have also issued reports about the stock. TD Cowen raised their price target on shares of Sweetgreen from $9.00 to $11.00 and gave the company a "hold" rating in a research note on Friday. DA Davidson set a $12.00 price objective on Sweetgreen in a research note on Friday. Morgan Stanley increased their target price on Sweetgreen from $7.00 to $8.00 and gave the company an "equal weight" rating in a report on Thursday, October 15th. Wall Street Zen upgraded Sweetgreen from a "strong sell" rating to a "sell" rating in a research report on Sunday, August 16th. Finally, Citigroup lifted their price target on Sweetgreen from $8.00 to $13.00 and gave the stock a "buy" rating in a research note on Friday, October 23rd. Six research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $9.76.

Sweetgreen Stock Performance

Sweetgreen stock traded up $0.74 during trading on Friday, reaching $12.29. The company had a trading volume of 3,972,479 shares, compared to its average volume of 5,060,094. The firm's 50-day simple moving average is $8.83 and its 200 day simple moving average is $7.28. Sweetgreen has a 1-year low of $4.49 and a 1-year high of $12.31. The firm has a market capitalization of $1.46 billion, a PE ratio of 122.56 and a beta of 2.11.

Sweetgreen (NYSE:SG - Get Free Report) last posted its quarterly earnings data on Friday, November 6th. The company reported ($0.26) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.26). Sweetgreen had a net margin of 2.01% and a negative return on equity of 32.94%. The company had revenue of $176.02 million during the quarter, compared to analysts' expectations of $170.07 million. During the same period in the prior year, the business posted ($0.31) earnings per share. The firm's revenue for the quarter was up 2.1% on a year-over-year basis. Analysts anticipate that Sweetgreen will post -1.04 EPS for the current year.

Insider Activity at Sweetgreen

In other Sweetgreen news, CFO Jamie McConnell sold 15,033 shares of the company's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $6.21, for a total value of $93,354.93. Following the completion of the sale, the chief financial officer directly owned 210,489 shares in the company, valued at $1,307,136.69. This represents a 6.67% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Jason Miles Cochran sold 4,809 shares of the company's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $6.21, for a total value of $29,863.89. Following the completion of the sale, the chief operating officer owned 207,076 shares of the company's stock, valued at approximately $1,285,941.96. The trade was a 2.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 18.19% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sweetgreen

A number of hedge funds have recently modified their holdings of the company. Fulcrum Asset Management LLP boosted its position in shares of Sweetgreen by 5,967.2% during the 3rd quarter. Fulcrum Asset Management LLP now owns 13,894 shares of the company's stock worth $121,000 after purchasing an additional 13,665 shares during the period. Sterling Capital Management LLC increased its holdings in Sweetgreen by 175.2% in the 3rd quarter. Sterling Capital Management LLC now owns 2,936 shares of the company's stock valued at $26,000 after purchasing an additional 1,869 shares during the last quarter. State of Alaska Department of Revenue acquired a new stake in Sweetgreen in the 3rd quarter valued at approximately $68,000. Curated Wealth Partners LLC acquired a new stake in Sweetgreen in the 3rd quarter valued at approximately $480,000. Finally, Eastern Bank raised its position in Sweetgreen by 7.3% in the third quarter. Eastern Bank now owns 27,054 shares of the company's stock valued at $240,000 after purchasing an additional 1,830 shares during the period. Hedge funds and other institutional investors own 95.75% of the company's stock.

Trending Headlines about Sweetgreen

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Higher targets from two bullish analysts: Wells Fargo raised its target from $11 to $14 and KeyCorp lifted its target from $12 to $13; both reiterated overweight ratings. The revisions may support investor optimism. Wells Fargo analyst rating KeyCorp analyst rating
• Positive Sentiment: Q3 revenue beat estimates and sales trends improved: Revenue was $176.0 million, up 2.1% year over year and above analysts’ expectations. Same-store sales fell 6.4%, an improvement from a 9.5% decline a year earlier. Sweetgreen’s quarterly loss was narrower than the year-ago loss, and one estimate put it below consensus. Q3 results Zacks earnings report
• Neutral Sentiment: TD Cowen raised its target but stayed cautious: The firm increased its target from $9 to $11, but kept a hold rating; its target is below the cited current share price. TD Cowen analyst rating
• Negative Sentiment: Recovery remains incomplete: Same-store sales were still down, and revenue growth was modest. Coverage also highlighted the lingering impact of a cyclospora outbreak and slower growth, tempering the otherwise better-than-expected results. Same-store sales and outbreak coverage

Sweetgreen Company Profile

Sweetgreen, Inc operates a fast-casual restaurant company focused on fresh, customizable meals. Its menu includes salads, grain bowls, protein plates, sides, and beverages made with seasonal produce and other ingredients. Customers can order in restaurants or through Sweetgreen's website and mobile application, with options for pickup and delivery.

Founded in 2007 by Nicolas Jammet, Jonathan Neman, and Nathaniel Ru, Sweetgreen began as a single restaurant in Washington, DC The company has expanded its restaurant network across metropolitan areas in the United States, with locations concentrated in major markets on the East and West coasts and in other regions.

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