Traders Purchase Large Volume of Sweetgreen Call Options (NYSE:SG)

Key Points

• Sweetgreen options activity surged: Investors bought 14,126 call options, 73% above the average volume, signaling heightened interest in the stock’s potential upside.
• Shares rose 1% to $10.14, near the 52-week high of $10.77, despite the company’s latest quarterly results missing analysts’ earnings and revenue expectations.
• Analyst sentiment has improved, with RBC and KeyCorp raising their ratings or price targets, but the overall consensus remains “Hold” with a $7.66 target price—below the current share price.

Sweetgreen, Inc. (NYSE:SG - Get Free Report) saw unusually large options trading on Monday. Stock investors acquired 14,126 call options on the company. This is an increase of 73% compared to the average volume of 8,171 call options.

Sweetgreen Trading Up 1.0%

Shares of SG traded up $0.10 during trading hours on Monday, reaching $10.14. 1,956,651 shares of the stock traded hands, compared to its average volume of 5,069,750. The stock has a fifty day simple moving average of $7.58 and a 200 day simple moving average of $7.48. Sweetgreen has a 52 week low of $4.49 and a 52 week high of $10.77. The company has a market cap of $1.21 billion, a price-to-earnings ratio of 101.16 and a beta of 2.16.

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 the consensus estimate of ($0.13) by ($0.09). Sweetgreen had a negative return on equity of 32.94% and a net margin of 2.01%. The firm had revenue of $192.66 million for the quarter, compared to analysts' expectations of $194.50 million. During the same quarter last year, the firm posted ($0.20) earnings per share. The firm's revenue for the quarter was up 3.8% compared to the same quarter last year. Analysts predict that Sweetgreen will post -1.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, COO Jason Miles Cochran sold 4,809 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $6.21, for a total value of $29,863.89. Following the transaction, the chief operating officer directly owned 207,076 shares in the company, valued at $1,285,941.96. This trade represents a 2.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jamie McConnell sold 15,033 shares of Sweetgreen stock in a transaction 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 completion of the sale, the chief financial officer directly owned 210,489 shares of the company's stock, valued at approximately $1,307,136.69. The trade was a 6.67% 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 Trading of Sweetgreen

A number of institutional investors and hedge funds have recently modified their holdings of the business. Fifth Third Bancorp bought a new position in Sweetgreen during the first quarter valued at about $38,000. Onyx Bridge Wealth Group LLC bought a new stake in Sweetgreen in the first quarter worth about $56,000. State of Alaska Department of Revenue bought a new stake in Sweetgreen in the third quarter worth about $68,000. Sequoia Financial Advisors LLC bought a new stake in Sweetgreen in the second quarter worth about $90,000. Finally, Caitong International Asset Management Co. Ltd boosted its stake in Sweetgreen by 548.2% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 13,437 shares of the company's stock valued at $91,000 after acquiring an additional 11,364 shares during the last quarter. 95.75% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

SG has been the subject of a number of analyst reports. Royal Bank Of Canada lifted their price objective on shares of Sweetgreen from $6.50 to $11.00 and gave the company an "outperform" rating in a report on Tuesday, September 29th. Wall Street Zen raised shares of Sweetgreen from a "strong sell" rating to a "sell" rating in a research report on Sunday, August 16th. KeyCorp upgraded shares of Sweetgreen from a "sector weight" rating to an "overweight" rating and set a $9.00 target price on the stock in a report on Tuesday, September 8th. UBS Group raised shares of Sweetgreen from a "neutral" rating to a "buy" rating in a research report on Friday, August 7th. Finally, TD Cowen lifted their price target on Sweetgreen from $5.00 to $6.00 and gave the company a "hold" rating in a research note on Friday, September 11th. Six research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $7.66.

Sweetgreen Company Profile

Sweetgreen, Inc operates a fast-casual restaurant chain focused on fresh, made-to-order meals. Its menu includes salads, warm grain bowls, protein plates, sides and beverages, with an emphasis on seasonal ingredients, customizable meals and health-conscious dining.

The company serves customers through company-operated restaurants in the United States, as well as digital channels that support online ordering, delivery, pickup and its loyalty program. Sweetgreen also uses technology in restaurant operations, including automated kitchen systems at select locations, to help improve consistency and service efficiency.

Sweetgreen was founded in 2007 by Nicolas Jammet, Jonathan Neman and Nathaniel Ru while they were students at Georgetown University.

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