HMS Capital Management LLC Invests $428,000 in Sprouts Farmers Market, Inc. $SFM

Key Points

• HMS Capital Management LLC purchased 2,597 shares of Sprouts Farmers Market, Inc., valued at approximately $428,000, during the second quarter, indicating institutional interest in the company.
• Barclays upgraded Sprouts Farmers Market from an "equal weight" to an "overweight" rating, raising the target price from $173.00 to $185.00, reflecting positive analyst sentiment towards the stock.
• The company reported $1.35 EPS for the last quarter, exceeding analysts' expectations, and projected a fiscal year 2025 EPS guidance between 5.200 and 5.320.

HMS Capital Management LLC acquired a new position in shares of Sprouts Farmers Market, Inc. (NASDAQ:SFM - Free Report) in the second quarter, according to its most recent 13F filing with the SEC. The institutional investor acquired 2,597 shares of the company's stock, valued at approximately $428,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Sowell Financial Services LLC purchased a new position in shares of Sprouts Farmers Market in the first quarter worth about $270,000. Maverick Capital Ltd. acquired a new stake in Sprouts Farmers Market in the first quarter valued at approximately $8,341,000. Two Sigma Investments LP boosted its stake in shares of Sprouts Farmers Market by 21.3% in the fourth quarter. Two Sigma Investments LP now owns 12,890 shares of the company's stock worth $1,638,000 after acquiring an additional 2,261 shares during the last quarter. Anderson Hoagland & Co. acquired a new stake in shares of Sprouts Farmers Market in the first quarter worth approximately $2,866,000. Finally, Charles Schwab Investment Management Inc. boosted its stake in shares of Sprouts Farmers Market by 1.0% in the first quarter. Charles Schwab Investment Management Inc. now owns 997,152 shares of the company's stock worth $152,205,000 after acquiring an additional 10,059 shares during the last quarter.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on SFM. Royal Bank Of Canada lifted their price objective on Sprouts Farmers Market from $173.00 to $176.00 and gave the stock a "sector perform" rating in a research report on Thursday, July 31st. Evercore ISI lowered their target price on Sprouts Farmers Market from $195.00 to $190.00 and set an "outperform" rating for the company in a research note on Tuesday, August 12th. JPMorgan Chase & Co. began coverage on Sprouts Farmers Market in a research note on Wednesday, August 20th. They set a "neutral" rating and a $159.00 target price for the company. Wells Fargo & Company raised Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and upped their price objective for the stock from $175.00 to $180.00 in a research report on Tuesday, August 5th. Finally, Barclays raised Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and boosted their target price for the company from $173.00 to $185.00 in a report on Thursday, July 31st. Eight equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $173.73.

Insider Activity at Sprouts Farmers Market

In related news, SVP Kim Coffin sold 651 shares of Sprouts Farmers Market stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $141.58, for a total value of $92,168.58. Following the completion of the transaction, the senior vice president directly owned 11,235 shares in the company, valued at approximately $1,590,651.30. This trade represents a 5.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Jack Sinclair sold 4,045 shares of Sprouts Farmers Market stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $138.60, for a total value of $560,637.00. Following the completion of the transaction, the chief executive officer owned 174,740 shares of the company's stock, valued at $24,218,964. This trade represents a 2.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 39,561 shares of company stock valued at $5,828,401. 1.10% of the stock is currently owned by insiders.

Sprouts Farmers Market Trading Down 2.6%

Shares of Sprouts Farmers Market stock traded down $3.36 during trading hours on Tuesday, reaching $125.52. 3,468,870 shares of the company's stock were exchanged, compared to its average volume of 1,597,907. Sprouts Farmers Market, Inc. has a 52-week low of $101.80 and a 52-week high of $182.00. The firm has a market capitalization of $12.27 billion, a price-to-earnings ratio of 25.83, a price-to-earnings-growth ratio of 1.46 and a beta of 0.86. The company has a fifty day moving average of $149.66 and a 200-day moving average of $155.22.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $1.35 earnings per share 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 business had revenue of $2.22 billion for the quarter, compared to analyst estimates of $2.16 billion. During the same period last year, the company posted $0.94 EPS. The business's quarterly revenue 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 research analysts anticipate that Sprouts Farmers Market, Inc. will post 4.29 earnings per share for the current fiscal year.

Sprouts Farmers Market declared that its board has initiated a stock buyback plan on Tuesday, August 19th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

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.