Evercore ISI Has Lowered Expectations for Sprouts Farmers Market (NASDAQ:SFM) Stock Price

Key Points

• Evercore ISI has reduced its target price for Sprouts Farmers Market stock from $190 to $185, maintaining an "outperform" rating, which reflects a potential upside of 67.23% from the current price.
• Insider trading activity includes the sale of 2,937 shares by Director Joseph D. O'leary, representing a 16.38% decrease in his position, and a total of 37,561 shares sold by insiders over the last ninety days.
• Sprouts Farmers Market recently reported a 17.3% year-over-year revenue increase, with earnings per share of $1.35, exceeding analysts' expectations by $0.12.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) had its target price cut by investment analysts at Evercore ISI from $190.00 to $185.00 in a research note issued on Tuesday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Evercore ISI's price target indicates a potential upside of 67.23% from the company's current price.

Several other brokerages have also recently commented on SFM. Weiss Ratings restated a "buy (b)" rating on shares of Sprouts Farmers Market in a research note on Saturday, September 27th. Jefferies Financial Group raised shares of Sprouts Farmers Market from a "hold" rating to a "buy" rating and set a $190.00 price objective for the company in a report on Friday, August 1st. UBS Group set a $180.00 target price on shares of Sprouts Farmers Market in a research report on Thursday, July 31st. Barclays raised shares of Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and raised their target price for the company from $173.00 to $185.00 in a report on Thursday, July 31st. Finally, Wall Street Zen raised shares of Sprouts Farmers Market from a "hold" rating to a "buy" rating in a report on Sunday, September 21st. Ten analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $176.29.

Sprouts Farmers Market Stock Up 3.8%

SFM traded up $4.04 on Tuesday, reaching $110.63. 509,866 shares of the company traded hands, compared to its average volume of 1,817,592. The company has a market cap of $10.81 billion, a P/E ratio of 22.77, a price-to-earnings-growth ratio of 1.16 and a beta of 0.77. The firm has a fifty day simple moving average of $130.43 and a two-hundred day simple moving average of $151.21. Sprouts Farmers Market has a one year low of $98.75 and a one year high of $182.00.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $1.35 EPS for the quarter, beating analysts' consensus estimates of $1.23 by $0.12. Sprouts Farmers Market had a net margin of 5.77% and a return on equity of 36.53%. The business had revenue of $2.22 billion for the quarter, compared to the consensus estimate of $2.16 billion. During the same quarter last year, the firm posted $0.94 EPS. The company's revenue for the quarter was up 17.3% on a year-over-year basis. Sprouts Farmers Market has set its FY 2025 guidance at 5.200-5.320 EPS. Q3 2025 guidance at 1.120-1.160 EPS. On average, equities analysts forecast that Sprouts Farmers Market will post 4.29 earnings per share for the current year.

Sprouts Farmers Market announced that its board has approved a share repurchase plan on Tuesday, August 19th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling at Sprouts Farmers Market

In other news, Director Joseph D. O'leary sold 2,937 shares of Sprouts Farmers Market stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $150.07, for a total transaction of $440,755.59. Following the completion of the transaction, the director owned 14,994 shares of the company's stock, valued at $2,250,149.58. The trade was a 16.38% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Dustin Hamilton sold 7,200 shares of Sprouts Farmers Market stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $138.95, for a total value of $1,000,440.00. Following the sale, the insider owned 16,349 shares of the company's stock, valued at approximately $2,271,693.55. This represents a 30.57% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 37,561 shares of company stock worth $5,257,184. Insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Sprouts Farmers Market

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Newbridge Financial Services Group Inc. acquired a new position in shares of Sprouts Farmers Market in the 2nd quarter valued at approximately $29,000. Dogwood Wealth Management LLC bought a new position in shares of Sprouts Farmers Market in the first quarter worth $30,000. Truvestments Capital LLC bought a new position in shares of Sprouts Farmers Market in the first quarter worth $35,000. SVB Wealth LLC bought a new position in shares of Sprouts Farmers Market in the first quarter worth $36,000. Finally, Brooklyn Investment Group lifted its holdings in shares of Sprouts Farmers Market by 12,100.0% in the first quarter. Brooklyn Investment Group now owns 244 shares of the company's stock valued at $37,000 after buying an additional 242 shares during the period.

About Sprouts Farmers Market

Sprouts Farmers Market, Inc, together with its subsidiaries, engages in the retailing of fresh, natural, and organic food products under the Sprouts brand in the United States. It offers perishable product categories, including fresh produce, meat and meat alternatives, seafood, deli, bakery, floral, and dairy and dairy alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.

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