Sweetgreen (NYSE:SG) Stock Sees Unusually High Call Option Buying

Key Points

• Sweetgreen saw unusually heavy call-option activity: Investors purchased 52,908 call options, about 520% above the average volume of 8,533 contracts.
• Shares fell 1.4% to $11.30 despite trading near their 52-week high; the company recently reported a quarterly loss of $0.22 per share, missing estimates, while revenue rose 3.8% year over year.
• Wall Street’s consensus rating remains Hold, with an average price target of $8.63, although analyst views range from “Sell” to “Buy.” Institutional ownership stands at 95.75%, and several firms recently initiated or increased positions.

Sweetgreen, Inc. (NYSE:SG - Get Free Report) saw unusually large options trading on Tuesday. Stock investors acquired 52,908 call options on the stock. This represents an increase of approximately 520% compared to the average volume of 8,533 call options.

Sweetgreen Stock Down 1.4%

Shares of NYSE:SG traded down $0.17 during trading on Tuesday, reaching $11.30. 1,152,015 shares of the company traded hands, compared to its average volume of 5,048,339. The company's 50 day moving average is $8.55 and its two-hundred day moving average is $7.23. The firm has a market capitalization of $1.35 billion, a PE ratio of 113.19 and a beta of 2.16. Sweetgreen has a 52 week low of $4.49 and a 52 week high of $11.95.

Sweetgreen (NYSE:SG - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.22) earnings per share for the quarter, missing analysts' consensus estimates of ($0.13) by ($0.09). The company had revenue of $192.66 million during the quarter, compared to analyst estimates of $194.50 million. Sweetgreen had a net margin of 2.01% and a negative return on equity of 32.94%. The company's revenue for the quarter was up 3.8% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.20) earnings per share. As a group, research analysts anticipate that Sweetgreen will post -1.04 EPS for the current year.

Insider Activity

In related news, CFO Jamie McConnell sold 15,033 shares of the company's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $6.21, for a total transaction of $93,354.93. Following the sale, the chief financial officer directly owned 210,489 shares in the company, valued at approximately $1,307,136.69. This represents a 6.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Jason Miles Cochran sold 4,809 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $6.21, for a total transaction of $29,863.89. Following the completion of the sale, the chief operating officer directly owned 207,076 shares in the company, valued at approximately $1,285,941.96. This trade represents a 2.27% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 18.19% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Wellington Management Group LLP bought a new position in Sweetgreen during the second quarter valued at $4,557,000. Bank of New York Mellon Corp acquired a new position in shares of Sweetgreen during the second quarter valued at approximately $2,792,000. Granahan Investment Management LLC acquired a new position in Sweetgreen during the first quarter worth about $1,472,000. Quantinno Capital Management LP increased its stake in shares of Sweetgreen by 495.3% in the 1st quarter. Quantinno Capital Management LP now owns 193,757 shares of the company's stock worth $1,006,000 after acquiring an additional 161,209 shares during the last quarter. Finally, Curated Wealth Partners LLC purchased a new stake in shares of Sweetgreen during the 3rd quarter valued at approximately $480,000. 95.75% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms have commented on SG. Weiss Ratings downgraded shares of Sweetgreen from a "sell (d+)" rating to a "sell (d)" rating in a report on Tuesday, August 11th. Citigroup raised their price target on shares of Sweetgreen from $8.00 to $13.00 and gave the stock a "buy" rating in a research report on Friday, October 23rd. Oppenheimer decreased their price target on shares of Sweetgreen from $10.00 to $8.50 and set an "outperform" rating for the company in a report on Friday, August 7th. TD Cowen boosted their price objective on shares of Sweetgreen from $6.00 to $9.00 and gave the company a "hold" rating in a research report on Wednesday, October 21st. Finally, DA Davidson dropped their price objective on shares of Sweetgreen from $7.00 to $5.50 and set a "neutral" rating on the stock in a research note on Monday, August 10th. Six equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $8.63.

Sweetgreen Company Profile

Sweetgreen, Inc operates a fast-casual restaurant company focused on fresh, customizable meals. Its menu includes salads, grain bowls, protein plates, sides, and beverages made with seasonal produce and other ingredients. Customers can order in restaurants or through Sweetgreen's website and mobile application, with options for pickup and delivery.

Founded in 2007 by Nicolas Jammet, Jonathan Neman, and Nathaniel Ru, Sweetgreen began as a single restaurant in Washington, DC The company has expanded its restaurant network across metropolitan areas in the United States, with locations concentrated in major markets on the East and West coasts and in other regions.

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