Share Buyback Plan Authorized by Sprouts Farmers Market (NASDAQ:SFM) Board of Directors

Key Points

• The Board of Directors at Sprouts Farmers Market has authorized a share buyback plan, indicating confidence in the **undervalued** status of their stock.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) announced that its board has initiated a share buyback plan on Tuesday, August 19th, RTT News reports. The company plans to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

Sprouts Farmers Market Trading Up 1.8%

NASDAQ SFM traded up $2.64 during trading on Tuesday, hitting $147.25. 1,337,957 shares of the company's stock were exchanged, compared to its average volume of 1,630,536. The company has a market cap of $14.39 billion, a PE ratio of 30.30, a P/E/G ratio of 1.63 and a beta of 0.78. Sprouts Farmers Market has a fifty-two week low of $95.25 and a fifty-two week high of $182.00. The stock's 50 day moving average price is $158.71 and its two-hundred day moving average price is $158.44.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $1.35 EPS for the quarter, topping the consensus estimate of $1.23 by $0.12. The firm had revenue of $2.22 billion during the quarter, compared to the consensus estimate of $2.16 billion. Sprouts Farmers Market had a return on equity of 36.53% and a net margin of 5.77%.The business's quarterly revenue was up 17.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.94 earnings per share. Sprouts Farmers Market has set its FY 2025 guidance at 5.200-5.320 EPS. Q3 2025 guidance at 1.120-1.160 EPS. Analysts forecast that Sprouts Farmers Market will post 4.29 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Jefferies Financial Group upgraded shares of Sprouts Farmers Market from a "hold" rating to a "buy" rating and set a $190.00 price objective on the stock in a report on Friday, August 1st. Evercore ISI decreased their price objective on shares of Sprouts Farmers Market from $195.00 to $190.00 and set an "outperform" rating on the stock in a report on Tuesday, August 12th. Roth Capital set a $155.00 price objective on shares of Sprouts Farmers Market and gave the company a "neutral" rating in a report on Thursday, May 1st. Barclays upgraded shares of Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $173.00 to $185.00 in a report on Thursday, July 31st. Finally, Royal Bank Of Canada boosted their target price on shares of Sprouts Farmers Market from $173.00 to $176.00 and gave the company a "sector perform" rating in a research report on Thursday, July 31st. Eight research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $172.20.

Insiders Place Their Bets

In related news, CEO Jack Sinclair sold 4,054 shares of the firm's stock in a transaction that occurred on Monday, June 16th. The shares were sold at an average price of $160.45, for a total value of $650,464.30. Following the completion of the transaction, the chief executive officer owned 174,740 shares in the company, valued at $28,037,033. This trade represents a 2.27% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Joseph D. O'leary sold 2,937 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $150.07, for a total transaction of $440,755.59. Following the completion of the transaction, the director owned 14,994 shares of the company's stock, valued at approximately $2,250,149.58. This trade represents a 16.38% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 58,504 shares of company stock worth $9,407,691 over the last quarter. 1.10% of the stock is currently owned by corporate insiders.

Sprouts Farmers Market Company Profile

Sprouts Farmers Market, Inc, together with its subsidiaries, engages in the retailing of fresh, natural, and organic food products under the Sprouts brand in the United States. It offers perishable product categories, including fresh produce, meat and meat alternatives, seafood, deli, bakery, floral, and dairy and dairy alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.

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