Barclays Has Lowered Expectations for Sweetgreen (NYSE:SG) Stock Price

Key Points

• Barclays has reduced its target price for Sweetgreen (NYSE:SG) from $17.00 to $10.00, maintaining an "equal weight" rating and indicating a potential upside of 9.70% from the previous close.
• Sweetgreen's stock recently traded down 28.0%, reaching a new low of $9.12, significantly below its fifty-two week high of $45.12.
• Analysts' consensus rating for Sweetgreen is currently a "Hold," with an average target price of $20.62, reflecting mixed opinions from various brokerages regarding the company's stock performance.

Sweetgreen (NYSE:SG - Get Free Report) had its target price cut by research analysts at Barclays from $17.00 to $10.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Barclays's price target would indicate a potential upside of 9.70% from the stock's previous close.

Several other brokerages have also commented on SG. Oppenheimer cut their target price on Sweetgreen from $35.00 to $29.00 and set an "outperform" rating on the stock in a research report on Friday, May 9th. Piper Sandler dropped their price objective on Sweetgreen from $20.00 to $12.00 and set a "neutral" rating on the stock in a report on Friday. Wells Fargo & Company reissued an "overweight" rating and set a $19.00 price objective on shares of Sweetgreen in a report on Tuesday, July 1st. UBS Group set a $19.00 price objective on Sweetgreen and gave the stock a "buy" rating in a report on Wednesday, July 30th. Finally, TD Securities restated a "hold" rating and issued a $15.00 target price (down from $25.00) on shares of Sweetgreen in a research note on Tuesday, July 1st. Eight equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $20.62.

Sweetgreen Trading Down 28.0%

SG traded down $3.54 on Friday, reaching $9.12. The stock had a trading volume of 17,191,289 shares, compared to its average volume of 4,658,758. Sweetgreen has a fifty-two week low of $8.80 and a fifty-two week high of $45.12. The firm has a 50-day moving average of $13.53 and a 200-day moving average of $19.40. The company has a market capitalization of $1.07 billion, a price-to-earnings ratio of -11.97 and a beta of 2.04.

Sweetgreen (NYSE:SG - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.20) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.08). The company had revenue of $185.58 million during the quarter, compared to analyst estimates of $193.47 million. Sweetgreen had a negative net margin of 13.04% and a negative return on equity of 19.72%. The company's quarterly revenue was up .5% on a year-over-year basis. During the same period in the previous year, the company posted ($0.13) EPS. Sell-side analysts anticipate that Sweetgreen will post -0.74 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Mitch Reback sold 10,088 shares of the firm's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $15.23, for a total value of $153,640.24. Following the completion of the transaction, the chief financial officer owned 334,421 shares in the company, valued at $5,093,231.83. This trade represents a 2.93% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Clifford Burrows acquired 19,200 shares of the stock in a transaction on Friday, May 23rd. The shares were bought at an average price of $13.11 per share, with a total value of $251,712.00. Following the purchase, the director directly owned 19,200 shares of the company's stock, valued at $251,712. The trade was a ∞ increase in their position. The disclosure for this purchase can be found here. 21.52% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Sweetgreen

Large investors have recently made changes to their positions in the business. Baillie Gifford & Co. lifted its holdings in Sweetgreen by 3.4% during the first quarter. Baillie Gifford & Co. now owns 11,707,090 shares of the company's stock worth $292,911,000 after buying an additional 386,141 shares during the period. FMR LLC grew its position in Sweetgreen by 3.4% during the 4th quarter. FMR LLC now owns 10,103,969 shares of the company's stock worth $323,933,000 after purchasing an additional 329,789 shares during the period. Wellington Management Group LLP grew its position in shares of Sweetgreen by 30.0% during the 1st quarter. Wellington Management Group LLP now owns 5,762,598 shares of the company's stock valued at $144,180,000 after acquiring an additional 1,330,094 shares during the period. Invesco Ltd. grew its position in shares of Sweetgreen by 40.9% during the 4th quarter. Invesco Ltd. now owns 5,516,223 shares of the company's stock valued at $176,850,000 after acquiring an additional 1,601,666 shares during the period. Finally, Durable Capital Partners LP boosted its holdings in Sweetgreen by 29.5% in the 1st quarter. Durable Capital Partners LP now owns 4,525,109 shares of the company's stock worth $113,218,000 after buying an additional 1,030,176 shares during the last quarter. 95.75% of the stock is currently owned by hedge funds and other institutional investors.

About Sweetgreen

Sweetgreen, Inc, together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.