Sweetgreen Sees Unusually Large Options Volume (NYSE:SG)

Key Points

• Sweetgreen saw unusually high call-option activity: Traders purchased 27,087 call options, about 113% above the typical volume of 12,705.
• Executives sold shares to cover tax withholding tied to vested equity awards, including CFO Jamie McConnell’s sale of 15,033 shares and COO Jason Miles Cochran’s sale of 4,809 shares.
• Wall Street’s consensus view remains “Hold”, with five Buy, eleven Hold and three Sell ratings and an average price target of $7.27; the stock recently traded at $7.54.

Sweetgreen, Inc. (NYSE:SG - Get Free Report) saw some unusual options trading on Wednesday. Traders purchased 27,087 call options on the company. This represents an increase of approximately 113% compared to the typical volume of 12,705 call options.

Insiders Place Their Bets

In other Sweetgreen news, CFO Jamie McConnell sold 15,033 shares of the company's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $6.21, for a total value of $93,354.93. Following the transaction, the chief financial officer directly owned 210,489 shares in the company, valued at $1,307,136.69. This represents a 6.67% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 stock was sold at an average price of $6.21, for a total transaction of $29,863.89. Following the transaction, 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 ownership of the stock. 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 currently owned by insiders.

Hedge Funds Weigh In On Sweetgreen

Several institutional investors and hedge funds have recently bought and sold shares of the company. Eastern Bank increased its stake in shares of Sweetgreen by 29.1% in the 2nd quarter. Eastern Bank now owns 25,224 shares of the company's stock valued at $222,000 after purchasing an additional 5,693 shares in the last quarter. Fifth Third Bancorp purchased a new position in Sweetgreen during the first quarter worth approximately $38,000. Versant Capital Management Inc grew its holdings in Sweetgreen by 241.5% in the second quarter. Versant Capital Management Inc now owns 10,518 shares of the company's stock valued at $93,000 after purchasing an additional 7,438 shares during the period. Aspen Grove Capital LLC grew its holdings in Sweetgreen by 36.4% in the first quarter. Aspen Grove Capital LLC now owns 30,000 shares of the company's stock valued at $156,000 after purchasing an additional 8,000 shares during the period. Finally, Sequoia Financial Advisors LLC acquired a new stake in Sweetgreen in the second quarter valued at approximately $90,000. 95.75% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on SG. Oppenheimer dropped their price target on Sweetgreen from $10.00 to $8.50 and set an "outperform" rating on the stock in a research report on Friday, August 7th. Royal Bank Of Canada lowered their price objective on shares of Sweetgreen from $7.00 to $6.50 and set an "outperform" rating for the company in a research note on Friday, August 7th. Wells Fargo & Company dropped their target price on shares of Sweetgreen from $7.00 to $6.00 and set an "equal weight" rating on the stock in a report on Friday, August 7th. Weiss Ratings downgraded shares of Sweetgreen from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th. Finally, TD Cowen boosted their price target on shares of Sweetgreen from $5.00 to $6.00 and gave the company a "hold" rating in a report on Friday, September 11th. Five research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, Sweetgreen has an average rating of "Hold" and an average target price of $7.27.

Sweetgreen Price Performance

Sweetgreen stock traded down $0.13 during trading hours on Wednesday, reaching $7.54. The stock had a trading volume of 1,494,044 shares, compared to its average volume of 5,081,026. The company has a market cap of $898.04 million, a price-to-earnings ratio of 75.26 and a beta of 2.20. The business's 50 day moving average price is $6.53 and its 200-day moving average price is $7.00. Sweetgreen has a 52 week low of $4.49 and a 52 week high of $10.63.

Sweetgreen (NYSE:SG - Get Free Report) last released 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 firm had revenue of $192.66 million during the quarter, compared to the consensus estimate of $194.50 million. Sweetgreen had a net margin of 2.01% and a negative return on equity of 32.94%. The firm's quarterly revenue was up 3.8% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.20) earnings per share. On average, sell-side analysts forecast that Sweetgreen will post -1.03 EPS for the current fiscal year.

About Sweetgreen

Sweetgreen, Inc operates a fast-casual restaurant chain focused on fresh, plant-forward meals. Its menu includes salads, grain bowls, warm bowls, sides, beverages and seasonal offerings prepared with a focus on whole ingredients and customizable combinations.

The company serves customers through company-operated restaurants and digital channels, including its website and mobile application for ordering, pickup and delivery. Sweetgreen has also developed automated restaurant technology, including its Infinite Kitchen platform, which is designed to support food preparation and restaurant operations.

Sweetgreen was founded in 2007 in Washington, DC, by Jonathan Neman, Nicolas Jammet and Nathaniel Ru.

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