Sweetgreen (NYSE:SG) Shares Gap Up - Should You Buy?

Key Points

• Sweetgreen shares gapped higher, opening at $7.29 versus a prior close of $6.84, but later traded near $6.88. The stock has a market capitalization of approximately $825 million and a beta of 2.20.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $7.21. Recent targets range from $5.50 to $8.50, while five analysts rate the stock a Buy, eleven a Hold, and three a Sell.
• Sweetgreen missed quarterly earnings expectations, reporting a loss of $0.22 per share versus the expected $0.13 loss, while revenue rose 3.8% year over year to $192.66 million. Insiders sold shares to cover tax obligations, although institutional investors own a substantial 95.75% of the stock.

Sweetgreen, Inc. (NYSE:SG - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $6.84, but opened at $7.29. Sweetgreen shares last traded at $6.8750, with a volume of 929,162 shares changing hands.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Wall Street Zen upgraded shares of Sweetgreen from a "strong sell" rating to a "sell" rating in a research report on Sunday, August 16th. Oppenheimer dropped their price objective on shares of Sweetgreen from $10.00 to $8.50 and set an "outperform" rating for the company in a research note on Friday, August 7th. Citigroup reduced their target price on shares of Sweetgreen from $10.00 to $8.00 and set a "buy" rating on the stock in a report on Friday, August 7th. UBS Group upgraded shares of Sweetgreen from a "neutral" rating to a "buy" rating in a research report on Friday, August 7th. Finally, DA Davidson lowered their price target on shares of Sweetgreen from $7.00 to $5.50 and set a "neutral" rating for the company in a report on Monday, August 10th. Five research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $7.21.

Sweetgreen Trading Up 1.3%

The business's 50 day moving average is $6.80 and its 200 day moving average is $6.90. The stock has a market capitalization of $824.59 million, a PE ratio of 69.24 and a beta of 2.20.

Sweetgreen (NYSE:SG - Get Free Report) last posted its quarterly earnings data 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 analysts' expectations of $194.50 million. Sweetgreen had a negative return on equity of 32.94% and a net margin of 2.01%.The business's revenue for the quarter was up 3.8% compared to the same quarter last year. During the same period last year, the company earned ($0.20) earnings per share. As a group, analysts anticipate that Sweetgreen, Inc. will post -0.98 EPS for the current year.

Insider Buying and Selling

In other news, CFO Jamie McConnell sold 15,033 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $6.21, for a total value 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 sale was disclosed in a filing with the SEC, which can be accessed 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 stock was sold at an average price of $6.21, for a total value of $29,863.89. Following the sale, the chief operating officer directly owned 207,076 shares of the company's stock, valued at $1,285,941.96. This represents a 2.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 18.19% of the company's stock.

Institutional Trading of Sweetgreen

Several institutional investors and hedge funds have recently made changes to their positions in SG. California State Teachers Retirement System increased its stake in Sweetgreen by 959.9% in the 2nd quarter. California State Teachers Retirement System now owns 1,070,820 shares of the company's stock worth $9,434,000 after buying an additional 969,790 shares during the period. Proficio Capital Partners LLC purchased a new stake in Sweetgreen in the 2nd quarter valued at about $99,000. Wellington Management Group LLP purchased a new stake in Sweetgreen in the 2nd quarter valued at about $4,557,000. Bank of New York Mellon Corp bought a new position in Sweetgreen in the 2nd quarter worth about $2,792,000. Finally, Versant Capital Management Inc grew its stake in Sweetgreen by 241.5% in the 2nd quarter. Versant Capital Management Inc now owns 10,518 shares of the company's stock worth $93,000 after acquiring an additional 7,438 shares in the last quarter. 95.75% of the stock is currently owned by institutional investors.

Sweetgreen Company Profile

Sweetgreen, Inc is a fast-casual restaurant chain specializing in salads, grain bowls and warm bowls that emphasize fresh, locally sourced ingredients. Since its founding in 2007 by Jonathan Neman, Nicolas Jammet and Nathaniel Ru, Sweetgreen has focused on sustainable agriculture, working with regional farmers across the United States to provide seasonal produce and promote environmentally responsible sourcing practices. The company's menu features a variety of plant-forward options, including custom-build salads, chef-curated bowls and limited-time offerings that reflect changing harvests.

Sweetgreen operates a technology-driven service model that combines in-store experiences with digital ordering through its mobile app and website.

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