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

Key Points

• TD Cowen raised Sweetgreen’s price target from $6 to $9 but maintained a “hold” rating, implying roughly 15% downside from the prior close.
• Analyst sentiment remains mixed, with a consensus “hold” rating and an average price target of $7.85; targets from other firms range from $8.50 to $11.
• Sweetgreen’s latest quarterly results missed expectations, reporting a $0.22 loss per share versus the $0.13 expected loss, while revenue rose 3.8% year over year to $192.66 million.

Sweetgreen (NYSE:SG - Get Free Report) had its price target increased by research analysts at TD Cowen from $6.00 to $9.00 in a research note issued on Wednesday, Benzinga reports. The brokerage currently has a "hold" rating on the stock. TD Cowen's price target points to a potential downside of 15.47% from the stock's previous close.

A number of other equities analysts have also commented on SG. Oppenheimer cut their price objective on shares of Sweetgreen from $10.00 to $8.50 and set an "outperform" rating for the company in a research report on Friday, August 7th. Wells Fargo & Company raised shares of Sweetgreen from an "equal weight" rating to an "overweight" rating and upped their target price for the stock from $6.00 to $11.00 in a report on Monday, September 28th. Royal Bank Of Canada increased their target price on shares of Sweetgreen from $6.50 to $11.00 and gave the stock an "outperform" rating in a research note on Tuesday, September 29th. Wall Street Zen upgraded shares of Sweetgreen from a "strong sell" rating to a "sell" rating in a research note on Sunday, August 16th. Finally, Weiss Ratings downgraded shares of Sweetgreen from a "sell (d+)" rating to a "sell (d)" rating in a report on Tuesday, August 11th. Six research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $7.85.

Sweetgreen Stock Performance

Shares of SG opened at $10.65 on Wednesday. Sweetgreen has a 52-week low of $4.49 and a 52-week high of $10.77. The stock's 50-day simple moving average is $7.77 and its 200 day simple moving average is $7.56. The stock has a market capitalization of $1.27 billion, a price-to-earnings ratio of 106.48 and a beta of 2.16.

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

Insider Transactions at Sweetgreen

In related news, COO Jason Miles Cochran sold 4,809 shares of the company'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 value of $29,863.89. Following the transaction, the chief operating officer directly owned 207,076 shares in the company, valued at approximately $1,285,941.96. This represents a 2.27% decrease in their ownership of the stock. 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 the company'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 $93,354.93. Following the completion of the transaction, the chief financial officer owned 210,489 shares in the company, valued at approximately $1,307,136.69. This trade represents a 6.67% decrease in their ownership of the stock. 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. Company insiders own 18.19% of the company's stock.

Institutional Investors Weigh In On Sweetgreen

A number of institutional investors and hedge funds have recently bought and sold shares of SG. Fifth Third Bancorp purchased a new stake in shares of Sweetgreen during the 1st quarter valued at $38,000. Onyx Bridge Wealth Group LLC bought a new stake in shares of Sweetgreen during the 1st quarter worth $56,000. State of Alaska Department of Revenue bought a new stake in shares of Sweetgreen during the 3rd quarter worth $68,000. Sequoia Financial Advisors LLC purchased a new position in Sweetgreen in the second quarter worth $90,000. Finally, Caitong International Asset Management Co. Ltd grew its position in Sweetgreen by 548.2% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 13,437 shares of the company's stock worth $91,000 after acquiring an additional 11,364 shares in the last quarter. 95.75% of the stock is owned by hedge funds and other institutional investors.

Sweetgreen Company Profile

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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