Rip Road Capital Partners LP Takes Position in Sweetgreen, Inc. $SG

Key Points

• Rip Road Capital Partners LP has acquired a new stake in Sweetgreen, Inc., purchasing 83,000 shares valued at approximately $2.08 million, making it the fund’s 17th largest position.
• Multiple large investors have increased their stakes in Sweetgreen, with hedge funds and institutional investors owning approximately 95.75% of the stock.
• Sweetgreen recently reported a net loss of $0.20 EPS for the last quarter, missing consensus estimates, and has a consensus rating of "Hold" with a target price of $17.69.

Rip Road Capital Partners LP bought a new stake in Sweetgreen, Inc. (NYSE:SG - Free Report) in the 1st quarter, according to its most recent filing with the SEC. The fund bought 83,000 shares of the company's stock, valued at approximately $2,077,000. Sweetgreen accounts for 2.3% of Rip Road Capital Partners LP's investment portfolio, making the stock its 17th largest holding. Rip Road Capital Partners LP owned about 0.07% of Sweetgreen as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. Baillie Gifford & Co. grew its position in shares of Sweetgreen by 3.4% in the first quarter. Baillie Gifford & Co. now owns 11,707,090 shares of the company's stock valued at $292,911,000 after purchasing an additional 386,141 shares during the period. Wellington Management Group LLP increased its holdings in shares of Sweetgreen by 30.0% in the first quarter. Wellington Management Group LLP now owns 5,762,598 shares of the company's stock valued at $144,180,000 after purchasing an additional 1,330,094 shares during the last quarter. Durable Capital Partners LP boosted its position in shares of Sweetgreen by 29.5% during the 1st quarter. Durable Capital Partners LP now owns 4,525,109 shares of the company's stock valued at $113,218,000 after acquiring an additional 1,030,176 shares during the last quarter. Massachusetts Financial Services Co. MA increased its position in Sweetgreen by 53.4% during the first quarter. Massachusetts Financial Services Co. MA now owns 2,514,316 shares of the company's stock worth $62,908,000 after purchasing an additional 874,942 shares during the last quarter. Finally, Spyglass Capital Management LLC raised its stake in Sweetgreen by 12.0% during the fourth quarter. Spyglass Capital Management LLC now owns 2,296,894 shares of the company's stock worth $73,638,000 after purchasing an additional 246,283 shares during the period. Hedge funds and other institutional investors own 95.75% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Bank of America cut their price target on shares of Sweetgreen from $27.00 to $22.00 and set a "buy" rating for the company in a report on Friday, July 18th. TD Securities reissued a "hold" rating and set a $15.00 target price (down previously from $25.00) on shares of Sweetgreen in a research note on Tuesday, July 1st. Royal Bank Of Canada decreased their price target on Sweetgreen from $25.00 to $13.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. Wells Fargo & Company reiterated an "overweight" rating and set a $19.00 price target on shares of Sweetgreen in a report on Tuesday, July 1st. Finally, The Goldman Sachs Group reduced their price objective on shares of Sweetgreen from $23.00 to $15.00 and set a "neutral" rating on the stock in a report on Wednesday, June 4th. Seven research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $17.69.

Sweetgreen Price Performance

SG stock remained flat at $8.69 during midday trading on Thursday. 4,859,641 shares of the company's stock traded hands, compared to its average volume of 4,945,066. Sweetgreen, Inc. has a 52 week low of $8.11 and a 52 week high of $45.12. The company has a market cap of $1.03 billion, a price-to-earnings ratio of -10.35 and a beta of 2.01. The firm has a 50-day moving average of $11.46 and a 200-day moving average of $16.11.

Sweetgreen (NYSE:SG - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported ($0.20) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 14.29% and a negative return on equity of 22.21%. Sweetgreen's revenue for the quarter was up .5% on a year-over-year basis. During the same period in the prior year, the business earned ($0.13) EPS. Sweetgreen has set its FY 2025 guidance at EPS. On average, research analysts expect that Sweetgreen, Inc. will post -0.74 earnings per share for the current year.

Insiders Place Their Bets

In other Sweetgreen news, CFO Mitch Reback sold 11,530 shares of the firm's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $9.19, for a total transaction of $105,960.70. Following the sale, the chief financial officer owned 322,891 shares of the company's stock, valued at approximately $2,967,368.29. This trade represents a 3.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 19.78% of the company's stock.

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.