Royal Bank Of Canada Issues Pessimistic Forecast for Sweetgreen (NYSE:SG) Stock Price

Key Points

• Royal Bank of Canada has lowered its price target for Sweetgreen (NYSE:SG) from $25.00 to $13.00, while maintaining an "outperform" rating on the stock, suggesting a potential upside of 36.05%.
• In addition to RBC, multiple analysts have reduced their price targets for Sweetgreen, with an average target price now standing at $17.69 and a consensus rating of "Hold."
• Sweetgreen's recent financial performance showed a loss of ($0.20) earnings per share, missing expectations, with revenue for the quarter reported at $185.58 million, lower than the consensus estimate.

Sweetgreen (NYSE:SG - Free Report) had its target price trimmed by Royal Bank Of Canada from $25.00 to $13.00 in a research note published on Friday morning,Benzinga reports. The brokerage currently has an outperform rating on the stock.

Several other equities research analysts have also recently issued reports on the company. Bank of America lowered their price objective on Sweetgreen from $27.00 to $22.00 and set a "buy" rating on the stock in a report on Friday, July 18th. Barclays lowered their target price on Sweetgreen from $17.00 to $10.00 and set an "equal weight" rating on the stock in a report on Friday. Morgan Stanley reduced their price target on shares of Sweetgreen from $22.00 to $17.00 and set an "equal weight" rating on the stock in a research report on Monday, July 14th. Piper Sandler reduced their price target on shares of Sweetgreen from $20.00 to $12.00 and set a "neutral" rating on the stock in a research report on Friday. Finally, The Goldman Sachs Group cut their target price on Sweetgreen from $23.00 to $15.00 and set a "neutral" rating on the stock in a research report on Wednesday, June 4th. Eight analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $17.69.

Sweetgreen Trading Down 2.5%

Shares of NYSE:SG traded down $0.25 during mid-day trading on Friday, reaching $9.50. The stock had a trading volume of 4,060,830 shares, compared to its average volume of 4,773,915. Sweetgreen has a 1 year low of $8.80 and a 1 year high of $45.12. The business's 50 day moving average price is $13.45 and its 200 day moving average price is $19.12. The company has a market cap of $1.11 billion, a P/E ratio of -11.34 and a beta of 2.04.

Sweetgreen (NYSE:SG - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.08). The firm had revenue of $185.58 million during the quarter, compared to the consensus estimate of $193.47 million. Sweetgreen had a negative return on equity of 21.91% and a negative net margin of 14.29%. The firm's revenue for the quarter was up .5% compared to the same quarter last year. During the same period last year, the company earned ($0.13) EPS. Analysts predict that Sweetgreen will post -0.74 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Clifford Burrows purchased 19,200 shares of the firm's stock in a transaction on Friday, May 23rd. The shares were bought at an average price of $13.11 per share, for a total transaction of $251,712.00. Following the acquisition, the director directly owned 19,200 shares in the company, valued at $251,712. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, CFO Mitch Reback sold 10,088 shares of Sweetgreen stock in a transaction on Friday, May 16th. The shares were sold at an average price of $15.23, for a total transaction of $153,640.24. Following the transaction, the chief financial officer owned 334,421 shares in the company, valued at $5,093,231.83. The trade was a 2.93% decrease in their position. The disclosure for this sale can be found here. 21.52% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. SG Americas Securities LLC boosted its stake in Sweetgreen by 115.3% during the 2nd quarter. SG Americas Securities LLC now owns 17,463 shares of the company's stock valued at $260,000 after purchasing an additional 9,352 shares during the period. Prospect Financial Services LLC acquired a new position in Sweetgreen during the 2nd quarter valued at about $175,000. Police & Firemen s Retirement System of New Jersey boosted its stake in Sweetgreen by 5.5% during the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 23,212 shares of the company's stock valued at $345,000 after purchasing an additional 1,209 shares during the period. Geode Capital Management LLC boosted its stake in Sweetgreen by 2.3% during the 2nd quarter. Geode Capital Management LLC now owns 2,420,856 shares of the company's stock valued at $36,027,000 after purchasing an additional 54,538 shares during the period. Finally, EFG Asset Management North America Corp. boosted its stake in Sweetgreen by 18.5% during the 2nd quarter. EFG Asset Management North America Corp. now owns 139,061 shares of the company's stock valued at $2,071,000 after purchasing an additional 21,734 shares during the period. 95.75% of the stock is owned by institutional investors and hedge funds.

About Sweetgreen

Sweetgreen, Inc, together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.