Sweetgreen (NYSE:SG) Trading Up 6.1% - Still a Buy?

Key Points

• Sweetgreen shares rose 6.1% to approximately $7.94 in midday trading, although volume was 82% below the average session level.
• Analyst sentiment remains mixed: five analysts rate the stock Buy, eleven Hold and three Sell, resulting in a consensus Hold rating and an average price target of $7.27.
• The company missed quarterly earnings expectations, reporting a $0.22 per-share loss versus the projected $0.13 loss, while revenue increased 3.8% year over year to $192.66 million. Analysts expect a full-year loss of $1.03 per share.

Sweetgreen, Inc. (NYSE:SG - Get Free Report)'s share price was up 6.1% during mid-day trading on Tuesday . The stock traded as high as $7.97 and last traded at $7.9370. 890,093 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 5,070,188 shares. The stock had previously closed at $7.48.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. DA Davidson lowered their target price on Sweetgreen from $7.00 to $5.50 and set a "neutral" rating on the stock in a report on Monday, August 10th. TD Cowen raised their price objective on shares of Sweetgreen from $5.00 to $6.00 and gave the company a "hold" rating in a research report on Friday, September 11th. Wall Street Zen raised shares of Sweetgreen from a "strong sell" rating to a "sell" rating in a research note on Sunday, August 16th. Royal Bank Of Canada dropped their target price on shares of Sweetgreen from $7.00 to $6.50 and set an "outperform" rating on the stock in a report on Friday, August 7th. Finally, KeyCorp raised shares of Sweetgreen from a "sector weight" rating to an "overweight" rating and set a $9.00 target price for the company in a research note on Tuesday, September 8th. Five investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $7.27.

Sweetgreen Stock Performance

The company has a market capitalization of $928.39 million, a PE ratio of 77.50 and a beta of 2.20. The stock has a 50 day moving average price of $6.52 and a two-hundred day moving average price of $6.99.

Sweetgreen (NYSE:SG - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported ($0.22) EPS for the quarter, missing the consensus estimate of ($0.13) by ($0.09). The business had revenue of $192.66 million during the quarter, compared to the consensus estimate 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 was up 3.8% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.20) earnings per share. Sell-side analysts predict that Sweetgreen, Inc. will post -1.03 earnings per share for the current year.

Insider Buying and Selling at Sweetgreen

In other Sweetgreen news, COO Jason Miles Cochran sold 4,809 shares of the company'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 completion of the transaction, the chief operating officer owned 207,076 shares of the company's stock, valued at $1,285,941.96. This represents a 2.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, 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 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 $93,354.93. Following the completion of the sale, the chief financial officer owned 210,489 shares of the company's stock, valued at $1,307,136.69. This represents 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. Company insiders own 18.19% of the company's stock.

Institutional Investors Weigh In On Sweetgreen

Several institutional investors and hedge funds have recently bought and sold shares of the business. Fifth Third Bancorp bought a new position in shares of Sweetgreen during the 1st quarter worth about $38,000. Sequoia Financial Advisors LLC acquired a new position in Sweetgreen in the second quarter worth about $90,000. Versant Capital Management Inc raised its position in Sweetgreen by 241.5% in 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. Onyx Bridge Wealth Group LLC bought a new position in Sweetgreen during the first quarter worth about $56,000. Finally, Proficio Capital Partners LLC bought a new position in Sweetgreen during the second quarter worth about $99,000. Institutional investors own 95.75% of the company's stock.

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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