Sweetgreen (NYSE:SG) Trading Down 6.2% - Time to Sell?

Key Points

• Sweetgreen shares fell 6.2% to about $6.53, with trading volume sharply below average. The stock has a market capitalization of approximately $784 million and a beta of 2.20.
• Analysts have recently cut their price targets, producing a consensus “Hold” rating and average target of $7.10; ratings include four Buys, twelve Holds and three Sells.
• The company missed quarterly expectations, reporting an EPS loss of $0.22 versus the estimated $0.13 loss and revenue of $192.66 million versus $194.50 million expected. Analysts project a full-year loss of $0.98 per share.

Sweetgreen, Inc. (NYSE:SG - Get Free Report) shares were down 6.2% during trading on Tuesday . The stock traded as low as $6.57 and last traded at $6.5250. 639,606 shares changed hands during trading, a decline of 87% from the average daily volume of 5,071,867 shares. The stock had previously closed at $6.96.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the company. Citigroup reduced their target price on Sweetgreen from $10.00 to $8.00 and set a "buy" rating for the company in a report on Friday, August 7th. Oppenheimer lowered their price target on Sweetgreen from $10.00 to $8.50 and set an "outperform" rating on the stock in a report on Friday, August 7th. Wells Fargo & Company dropped their price objective on Sweetgreen from $7.00 to $6.00 and set an "equal weight" rating on the stock in a research report on Friday, August 7th. Wall Street Zen upgraded Sweetgreen from a "strong sell" rating to a "sell" rating in a report on Sunday, August 16th. Finally, TD Cowen reduced their price objective on Sweetgreen from $8.00 to $5.00 and set a "hold" rating for the company in a report on Friday, August 7th. Four equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $7.10.

Sweetgreen Stock Down 5.4%

The stock has a market cap of $783.88 million, a P/E ratio of 65.76 and a beta of 2.20. The firm has a 50 day moving average price of $7.00 and a 200 day moving average price of $6.84.

Sweetgreen (NYSE:SG - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.13) by ($0.09). Sweetgreen had a net margin of 2.01% and a negative return on equity of 32.94%. The company had revenue of $192.66 million for the quarter, compared to the consensus estimate of $194.50 million. During the same quarter last year, the firm posted ($0.20) earnings per share. The company's revenue was up 3.8% compared to the same quarter last year. Equities analysts predict that Sweetgreen, Inc. will post -0.98 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, COO Jason Miles Cochran sold 4,809 shares of the firm's stock in a transaction 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 sale, 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 hyperlink. 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 the firm's 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 sale, the chief financial officer owned 210,489 shares in the company, valued at $1,307,136.69. The trade was a 6.67% 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 Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Larson Financial Group LLC raised its holdings in Sweetgreen by 165.8% during the third quarter. Larson Financial Group LLC now owns 3,766 shares of the company's stock valued at $30,000 after acquiring an additional 2,349 shares during the period. Fifth Third Bancorp bought a new position in shares of Sweetgreen in the first quarter worth about $38,000. CWM LLC boosted its stake in shares of Sweetgreen by 212.2% in the fourth quarter. CWM LLC now owns 7,333 shares of the company's stock worth $50,000 after acquiring an additional 4,984 shares during the period. Caitong International Asset Management Co. Ltd grew its position in shares of Sweetgreen by 281.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 7,912 shares of the company's stock worth $53,000 after purchasing an additional 5,839 shares in the last quarter. Finally, Versant Capital Management Inc grew its position in shares of Sweetgreen by 241.5% during the second quarter. Versant Capital Management Inc now owns 10,518 shares of the company's stock worth $93,000 after purchasing an additional 7,438 shares in the last quarter. Institutional investors own 95.75% of the company's stock.

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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