Maverick Capital Ltd. Invests $8.34 Million in Sprouts Farmers Market, Inc. $SFM

Key Points

• Maverick Capital Ltd. acquired 54,647 shares of Sprouts Farmers Market, valued at approximately $8.34 million, during the 1st quarter, marking a new position for the firm.
• Sprouts Farmers Market reported $1.35 earnings per share (EPS) for the last quarter, exceeding analysts' estimates of $1.23, with a year-over-year revenue increase of 17.3% to $2.22 billion.
• Several large investors, including Assenagon Asset Management and Wellington Management Group, significantly increased their stakes in Sprouts Farmers Market during the same quarter.

Maverick Capital Ltd. purchased a new position in shares of Sprouts Farmers Market, Inc. (NASDAQ:SFM - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 54,647 shares of the company's stock, valued at approximately $8,341,000. Maverick Capital Ltd. owned approximately 0.06% of Sprouts Farmers Market as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in SFM. Whipplewood Advisors LLC increased its stake in Sprouts Farmers Market by 92.0% in the first quarter. Whipplewood Advisors LLC now owns 192 shares of the company's stock valued at $29,000 after purchasing an additional 92 shares during the last quarter. Dogwood Wealth Management LLC acquired a new stake in shares of Sprouts Farmers Market during the first quarter worth $30,000. Truvestments Capital LLC purchased a new position in shares of Sprouts Farmers Market in the 1st quarter valued at about $35,000. SVB Wealth LLC purchased a new position in shares of Sprouts Farmers Market in the 1st quarter valued at about $36,000. Finally, Brooklyn Investment Group increased its holdings in shares of Sprouts Farmers Market by 12,100.0% in the 1st quarter. Brooklyn Investment Group now owns 244 shares of the company's stock valued at $37,000 after purchasing an additional 242 shares in the last quarter.

Sprouts Farmers Market Price Performance

Sprouts Farmers Market stock traded down $1.24 during mid-day trading on Friday, hitting $138.83. The company's stock had a trading volume of 1,358,085 shares, compared to its average volume of 1,726,286. Sprouts Farmers Market, Inc. has a 52-week low of $97.61 and a 52-week high of $182.00. The firm's 50 day moving average is $154.08 and its 200 day moving average is $156.32. The company has a market cap of $13.57 billion, a PE ratio of 28.57, a price-to-earnings-growth ratio of 1.56 and a beta of 0.86.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $1.35 EPS for the quarter, topping the consensus estimate of $1.23 by $0.12. Sprouts Farmers Market had a return on equity of 36.53% and a net margin of 5.77%.The company had revenue of $2.22 billion for the quarter, compared to the consensus estimate of $2.16 billion. During the same period in the previous year, the business 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. As a group, analysts forecast that Sprouts Farmers Market, Inc. will post 4.29 EPS for the current year.

Sprouts Farmers Market declared that its board has authorized a stock buyback program on Tuesday, August 19th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Shares repurchase programs are often an indication that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. JPMorgan Chase & Co. began coverage on shares of Sprouts Farmers Market in a research note on Wednesday, August 20th. They issued a "neutral" rating and a $159.00 target price for the company. Jefferies Financial Group upgraded Sprouts Farmers Market from a "hold" rating to a "buy" rating and set a $190.00 target price for the company in a report on Friday, August 1st. Royal Bank Of Canada upped their price target on Sprouts Farmers Market from $173.00 to $176.00 and gave the stock a "sector perform" rating in a report on Thursday, July 31st. Evercore ISI decreased their price target on Sprouts Farmers Market from $195.00 to $190.00 and set an "outperform" rating for the company in a report on Tuesday, August 12th. Finally, UBS Group set a $180.00 target price on Sprouts Farmers Market in a research report on Thursday, July 31st. Eight investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, Sprouts Farmers Market has a consensus rating of "Moderate Buy" and a consensus target price of $173.73.

Insiders Place Their Bets

In other Sprouts Farmers Market news, insider Timmi Zalatoris sold 2,000 shares of the company's stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $164.38, for a total value of $328,760.00. Following the sale, the insider owned 13,263 shares in the company, valued at $2,180,171.94. This represents a 13.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Joe Fortunato sold 10,000 shares of the stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $147.57, for a total value of $1,475,700.00. Following the transaction, the director owned 18,164 shares in the company, valued at approximately $2,680,461.48. This trade represents a 35.51% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 38,737 shares of company stock valued at $5,954,023 in the last ninety days. 1.10% of the stock is currently owned by insiders.

Sprouts Farmers Market Profile

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.