Sweetgreen (NYSE:SG) Stock Gets Price Target Boost from Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised Sweetgreen’s price target to $11 from $6.50 and maintained an “outperform” rating, implying approximately 32.6% upside from the stock’s $8.30 opening price.
• Analyst sentiment remains mixed: six analysts rate the stock a Buy, 10 Hold, and three Sell, producing a consensus “Hold” rating and average target of $7.83.
• Sweetgreen’s latest quarter missed expectations, with an adjusted loss of $0.22 per share versus the $0.13 consensus estimate and revenue of $192.66 million versus $194.50 million expected, though revenue increased 3.8% year over year.

Sweetgreen (NYSE:SG - Get Free Report) had its price objective upped by research analysts at Royal Bank Of Canada from $6.50 to $11.00 in a research note issued to investors on Tuesday, Benzinga reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target indicates a potential upside of 32.59% from the stock's current price.

A number of other equities analysts have also weighed in on SG. UBS Group raised Sweetgreen from a "neutral" rating to a "buy" rating in a research note on Friday, August 7th. Citigroup reduced their price target on shares of Sweetgreen from $10.00 to $8.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. KeyCorp raised Sweetgreen from a "sector weight" rating to an "overweight" rating and set a $9.00 target price for the company in a research note on Tuesday, September 8th. Wall Street Zen raised Sweetgreen from a "strong sell" rating to a "sell" rating in a research report on Sunday, August 16th. Finally, DA Davidson dropped their price target on shares of Sweetgreen from $7.00 to $5.50 and set a "neutral" rating for the company in a research report on Monday, August 10th. Six analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Sweetgreen currently has a consensus rating of "Hold" and a consensus target price of $7.83.

Sweetgreen Stock Up 0.7%

Shares of NYSE SG opened at $8.30 on Tuesday. The firm has a market cap of $987.56 million, a price-to-earnings ratio of 82.97 and a beta of 2.20. Sweetgreen has a 52-week low of $4.49 and a 52-week high of $10.63. The company's 50-day simple moving average is $6.64 and its 200-day simple moving average is $7.07.

Sweetgreen (NYSE:SG - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.13) by ($0.09). Sweetgreen had a negative return on equity of 32.94% and a net margin of 2.01%.The firm had revenue of $192.66 million during the quarter, compared to analyst estimates of $194.50 million. During the same period in the prior year, the firm earned ($0.20) earnings per share. The business's revenue was up 3.8% on a year-over-year basis. Equities research analysts anticipate that Sweetgreen will post -1.03 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, COO Jason Miles Cochran sold 4,809 shares of Sweetgreen stock in a transaction on Monday, August 17th. The shares were sold at an average price of $6.21, for a total transaction of $29,863.89. Following the completion of the sale, the chief operating officer directly 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 Sweetgreen stock in a transaction on Monday, August 17th. The stock was sold at an average price of $6.21, for a total transaction of $93,354.93. Following the sale, the chief financial officer directly owned 210,489 shares of the company's stock, valued at approximately $1,307,136.69. This trade represents a 6.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 Trading of Sweetgreen

A number of hedge funds and other institutional investors have recently made changes to their positions in SG. Ibex Investors LLC increased its holdings in Sweetgreen by 5,058.7% in the fourth quarter. Ibex Investors LLC now owns 825,400 shares of the company's stock valued at $5,580,000 after buying an additional 809,400 shares in the last quarter. BNP Paribas Financial Markets boosted its stake in shares of Sweetgreen by 35.6% during the 4th quarter. BNP Paribas Financial Markets now owns 2,295,867 shares of the company's stock worth $15,520,000 after acquiring an additional 603,029 shares in the last quarter. Wellington Management Group LLP purchased a new stake in shares of Sweetgreen during the 2nd quarter worth approximately $4,557,000. Bank of New York Mellon Corp acquired a new stake in shares of Sweetgreen in the 2nd quarter worth approximately $2,792,000. Finally, Granahan Investment Management LLC acquired a new stake in shares of Sweetgreen in the 1st quarter worth approximately $1,472,000. Institutional investors and hedge funds own 95.75% of the company's stock.

More Sweetgreen News

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Wells Fargo upgraded Sweetgreen to Overweight from Equal Weight, citing improving operational execution and a more favorable post-Cyclospora setup. The change in recommendation provided the primary catalyst for the shares’ recovery. Wells Fargo upgrades Sweetgreen to overweight from equal-weight
• Positive Sentiment: Multiple market reports said Sweetgreen has erased the decline associated with the Cyclospora outbreak. Investors appear to be looking past the near-term food-safety concerns and focusing on normalized operations and the potential for improved customer traffic and sales. Sweetgreen shares erase Cyclospora slump as Wells Fargo upgrades
• Neutral Sentiment: A separate head-to-head analysis compared Sweetgreen with Expedia Group, likely addressing relative financial and valuation metrics. It does not represent a new company announcement or a change to Sweetgreen’s operating outlook, so its direct effect on the stock is limited. Sweetgreen versus Expedia Group head-to-head analysis

About Sweetgreen

Sweetgreen, Inc operates a fast-casual restaurant chain focused on fresh, plant-forward meals. Its menu includes salads, grain bowls, warm bowls, sides, beverages and seasonal offerings prepared with a focus on whole ingredients and customizable combinations.

The company serves customers through company-operated restaurants and digital channels, including its website and mobile application for ordering, pickup and delivery. Sweetgreen has also developed automated restaurant technology, including its Infinite Kitchen platform, which is designed to support food preparation and restaurant operations.

Sweetgreen was founded in 2007 in Washington, DC, by Jonathan Neman, Nicolas Jammet and Nathaniel Ru.

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