Sweetgreen (NYSE:SG) Price Target Raised to $8.00

Key Points

• Morgan Stanley raised Sweetgreen’s price target to $8.00 from $7.00 while maintaining an “equal weight” rating, implying about 23.77% downside from the stock’s $10.49 price.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $7.66. Ratings include six Buys, nine Holds and three Sells.
• Sweetgreen’s latest quarter fell short of expectations, reporting an adjusted loss of $0.22 per share versus the projected $0.13 loss and revenue of $192.66 million versus $194.50 million expected, although revenue increased 3.8% year over year.

Sweetgreen (NYSE:SG - Get Free Report) had its price target raised by analysts at Morgan Stanley from $7.00 to $8.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's price objective indicates a potential downside of 23.77% from the stock's current price.

Several other research analysts have also issued reports on the stock. Wall Street Zen upgraded shares of Sweetgreen from a "strong sell" rating to a "sell" rating in a research note on Sunday, August 16th. Oppenheimer dropped their price objective on shares of Sweetgreen from $10.00 to $8.50 and set an "outperform" rating on the stock in a research note on Friday, August 7th. Wells Fargo & Company raised shares of Sweetgreen from an "equal weight" rating to an "overweight" rating and boosted their price objective for the stock from $6.00 to $11.00 in a research note on Monday, September 28th. Weiss Ratings cut shares of Sweetgreen from a "sell (d+)" rating to a "sell (d)" rating in a report on Tuesday, August 11th. Finally, UBS Group raised shares of Sweetgreen from a "neutral" rating to a "buy" rating in a research note on Friday, August 7th. Six research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $7.66.

Sweetgreen Price Performance

SG stock traded up $0.35 during midday trading on Thursday, hitting $10.49. The stock had a trading volume of 2,186,473 shares, compared to its average volume of 5,080,075. The business has a 50-day moving average of $7.39 and a two-hundred day moving average of $7.40. The firm has a market cap of $1.25 billion, a price-to-earnings ratio of 104.96 and a beta of 2.16. Sweetgreen has a 52-week low of $4.49 and a 52-week high of $10.63.

Sweetgreen (NYSE:SG - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.22) EPS for the quarter, missing the consensus estimate of ($0.13) by ($0.09). Sweetgreen had a net margin of 2.01% and a negative return on equity of 32.94%. The firm had revenue of $192.66 million for the quarter, compared to analysts' expectations of $194.50 million. During the same period in the prior year, the business posted ($0.20) EPS. The business's quarterly revenue was up 3.8% compared to the same quarter last year. Research analysts predict that Sweetgreen will post -1.03 earnings per share for the current year.

Insider Buying and Selling at Sweetgreen

In other news, CFO Jamie McConnell sold 15,033 shares of Sweetgreen stock in a transaction dated 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 transaction, the chief financial officer owned 210,489 shares of the company's stock, valued at $1,307,136.69. The trade was a 6.67% decrease in their position. The transaction was disclosed in a document filed 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 dated Monday, August 17th. The stock was sold at an average price of $6.21, for a total transaction of $29,863.89. Following the completion of the transaction, the chief operating officer owned 207,076 shares in the company, valued at approximately $1,285,941.96. The trade was a 2.27% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 18.19% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Fifth Third Bancorp purchased a new stake in Sweetgreen during the 1st quarter valued at $38,000. Onyx Bridge Wealth Group LLC purchased a new position in shares of Sweetgreen in the first quarter worth $56,000. State of Alaska Department of Revenue purchased a new position in shares of Sweetgreen in the third quarter worth $68,000. Sequoia Financial Advisors LLC purchased a new position in shares of Sweetgreen in the second quarter worth $90,000. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in shares of Sweetgreen by 548.2% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 13,437 shares of the company's stock valued at $91,000 after purchasing an additional 11,364 shares in the last quarter. 95.75% of the stock is owned by hedge funds and other institutional investors.

About Sweetgreen

Sweetgreen, Inc operates a fast-casual restaurant chain focused on fresh, made-to-order meals. Its menu includes salads, warm grain bowls, protein plates, sides and beverages, with an emphasis on seasonal ingredients, customizable meals and health-conscious dining.

The company serves customers through company-operated restaurants in the United States, as well as digital channels that support online ordering, delivery, pickup and its loyalty program. Sweetgreen also uses technology in restaurant operations, including automated kitchen systems at select locations, to help improve consistency and service efficiency.

Sweetgreen was founded in 2007 by Nicolas Jammet, Jonathan Neman and Nathaniel Ru while they were students at Georgetown University.

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