Sweetgreen (NYSE:SG) Stock Bumped Up to Hold by Wall Street Zen

Key Points

• Wall Street Zen upgraded Sweetgreen from Sell to Hold. Across analysts, the consensus rating is Hold, with an average price target of $9.88, though several firms recently raised targets.
• Sweetgreen’s latest quarter revenue was $176 million, above expectations and up 2.1% year over year; its $0.26-per-share loss matched consensus.
• Same-store sales remained under pressure, falling 6.4%, although the decline narrowed from a year earlier. The article links sales weakness to the Cyclospora outbreak and notes investors are watching for a sustained recovery.

Sweetgreen (NYSE:SG - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued on Saturday, Wall Street Zen reports.

Several other equities research analysts have also recently weighed in on the company. DA Davidson upped their target price on Sweetgreen from $5.50 to $12.00 and gave the stock a "neutral" rating in a research note on Friday. UBS Group lifted their target price on Sweetgreen from $6.50 to $11.00 and gave the company a "neutral" rating in a report on Wednesday, October 28th. Oppenheimer increased their target price on Sweetgreen from $8.50 to $14.00 and gave the company an "outperform" rating in a research note on Friday. Citigroup boosted their price objective on Sweetgreen from $13.00 to $15.00 and gave the stock a "buy" rating in a research report on Friday. Finally, Wells Fargo & Company increased their target price on Sweetgreen from $11.00 to $14.00 and gave the stock an "overweight" rating in a research note on Friday. Six research analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, Sweetgreen has a consensus rating of "Hold" and an average target price of $9.88.

Sweetgreen Price Performance

Shares of NYSE:SG opened at $11.92 on Friday. Sweetgreen has a one year low of $4.49 and a one year high of $12.49. The company's fifty day moving average price is $8.93 and its 200-day moving average price is $7.31. The firm has a market capitalization of $1.42 billion, a price-to-earnings ratio of 79.50 and a beta of 2.11.

Sweetgreen (NYSE:SG - Get Free Report) last posted its earnings results on Thursday, November 5th. The company reported ($0.26) EPS for the quarter, meeting analysts' consensus estimates of ($0.26). The company had revenue of $176.02 million during the quarter, compared to analysts' expectations of $170.07 million. Sweetgreen had a net margin of 2.01% and a negative return on equity of 32.94%. Sweetgreen's revenue for the quarter was up 2.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.31) earnings per share. As a group, equities research analysts expect that Sweetgreen will post -1.04 EPS for the current year.

Insider Activity

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

Institutional Trading of Sweetgreen

Institutional investors have recently bought and sold shares of the business. Sterling Capital Management LLC lifted its stake in Sweetgreen by 175.2% in the 3rd quarter. Sterling Capital Management LLC now owns 2,936 shares of the company's stock worth $26,000 after purchasing an additional 1,869 shares in the last quarter. Fifth Third Bancorp purchased a new position in shares of Sweetgreen in the 1st quarter valued at approximately $38,000. State of Alaska Department of Revenue purchased a new position in shares of Sweetgreen in the 3rd quarter worth $68,000. Sequoia Financial Advisors LLC bought a new position in Sweetgreen in the 2nd quarter worth approximately $90,000. Finally, Versant Capital Management Inc raised its holdings in shares of Sweetgreen by 241.5% during the 2nd quarter. Versant Capital Management Inc now owns 10,518 shares of the company's stock valued at $93,000 after purchasing an additional 7,438 shares in the last quarter. Institutional investors own 95.75% of the company's stock.

Key Sweetgreen News

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Sweetgreen reported Q3 revenue of $176.0 million, up 2.1% year over year and above the roughly $170 million consensus estimate. Its $0.26-per-share loss was in line with consensus and narrower than the year-earlier loss. Same-store sales fell 6.4%, an improvement from a 9.5% decline a year ago. Sweetgreen Q3 results
• Positive Sentiment: Several firms raised their targets: Oppenheimer and Wells Fargo moved to $14, while KeyCorp raised its target to $13; all maintained bullish ratings. The revisions may bolster confidence following the earnings release. Oppenheimer rating Wells Fargo rating KeyCorp rating
• Neutral Sentiment: TD Cowen raised its target from $9 to $11 but kept a Hold rating; its new target remains below the stock’s recent trading level. TD Cowen rating
• Negative Sentiment: Despite improvement, same-store sales remained negative and overall revenue growth was modest. Reports tie the sales pressure to the Cyclospora outbreak, leaving investors focused on whether the recovery can continue. Same-store sales and outbreak recovery

About Sweetgreen

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.