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

Key Points

• TD Cowen raised Sweetgreen’s price target from $5 to $6 but maintained a “Hold” rating, implying about 11.3% downside from the stock’s $6.76 price. The broader analyst consensus also remains “Hold,” with an average target of $7.27.
• Sweetgreen’s latest quarterly results fell short of expectations: adjusted EPS was a loss of $0.22 versus the expected $0.13 loss, while revenue reached $192.66 million, slightly below estimates but up 3.8% year over year.
• Institutional investors own 95.75% of Sweetgreen’s shares, while insiders own 18.19%. The company’s CFO and COO recently sold shares to cover tax obligations related to vested equity awards.

Sweetgreen (NYSE:SG - Get Free Report) had its price target increased by equities researchers at TD Cowen from $5.00 to $6.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage currently has a "hold" rating on the stock. TD Cowen's price target would indicate a potential downside of 11.31% from the company's current price.

SG has been the topic of a number of other reports. UBS Group upgraded shares of Sweetgreen from a "neutral" rating to a "buy" rating in a research note on Friday, August 7th. Royal Bank Of Canada lowered their price objective on shares of Sweetgreen from $7.00 to $6.50 and set an "outperform" rating for the company in a research note on Friday, August 7th. DA Davidson dropped their price objective on shares of Sweetgreen from $7.00 to $5.50 and set a "neutral" rating for the company in a report on Monday, August 10th. Weiss Ratings downgraded shares of Sweetgreen from a "sell (d+)" rating to a "sell (d)" rating in a research note on Tuesday, August 11th. Finally, Oppenheimer reduced their target price on shares of Sweetgreen from $10.00 to $8.50 and set an "outperform" rating on the stock in a report on Friday, August 7th. Five analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $7.27.

Sweetgreen Stock Up 0.7%

SG opened at $6.76 on Friday. Sweetgreen has a 52 week low of $4.49 and a 52 week high of $10.63. The business has a fifty day simple moving average of $6.67 and a 200-day simple moving average of $6.92. The firm has a market cap of $805.31 million, a P/E ratio of 67.66 and a beta of 2.20.

Sweetgreen (NYSE:SG - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.22) earnings per share (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 during the quarter, compared to analysts' expectations of $194.50 million. During the same quarter in the prior year, the firm posted ($0.20) EPS. Sweetgreen's quarterly revenue was up 3.8% compared to the same quarter last year. Sell-side analysts expect that Sweetgreen will post -1.03 earnings per share for the current year.

Insider Buying and Selling

In other Sweetgreen news, CFO Jamie McConnell sold 15,033 shares of the business's 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 transaction, the chief financial officer owned 210,489 shares in the company, valued at $1,307,136.69. The trade was a 6.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 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 business's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $6.21, for a total transaction of $29,863.89. Following the transaction, the chief operating officer owned 207,076 shares of the company's stock, valued at $1,285,941.96. This trade represents 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 insiders.

Hedge Funds Weigh In On Sweetgreen

A number of institutional investors and hedge funds have recently modified their holdings of the company. Sequoia Financial Advisors LLC purchased a new position in Sweetgreen in the second quarter valued at $90,000. Integrated Wealth Concepts LLC purchased a new stake in Sweetgreen during the 2nd quarter worth about $112,000. California State Teachers Retirement System boosted its position in shares of Sweetgreen by 959.9% during the 2nd quarter. California State Teachers Retirement System now owns 1,070,820 shares of the company's stock worth $9,434,000 after acquiring an additional 969,790 shares in the last quarter. Proficio Capital Partners LLC acquired a new position in shares of Sweetgreen during the 2nd quarter worth about $99,000. Finally, Wellington Management Group LLP purchased a new position in shares of Sweetgreen in the 2nd quarter valued at about $4,557,000. Institutional investors and hedge funds own 95.75% of the company's stock.

About Sweetgreen

Sweetgreen, Inc is a fast-casual restaurant chain specializing in salads, grain bowls and warm bowls that emphasize fresh, locally sourced ingredients. Since its founding in 2007 by Jonathan Neman, Nicolas Jammet and Nathaniel Ru, Sweetgreen has focused on sustainable agriculture, working with regional farmers across the United States to provide seasonal produce and promote environmentally responsible sourcing practices. The company's menu features a variety of plant-forward options, including custom-build salads, chef-curated bowls and limited-time offerings that reflect changing harvests.

Sweetgreen operates a technology-driven service model that combines in-store experiences with digital ordering through its mobile app and website.

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