Sprouts Farmers Market, Inc. (NASDAQ:SFM) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Sprouts Farmers Market, Inc. (NASDAQ:SFM) has received a consensus rating of "Moderate Buy" from analysts, with eight out of fifteen firms issuing buy recommendations and an average 12-month price target of $173.73.
• The company recently posted quarterly earnings of $1.35 per share, exceeding expectations of $1.23, with a revenue of $2.22 billion for the quarter, showcasing a revenue increase of 17.3% year-over-year.
• Sprouts announced a share buyback plan, indicating management's belief that the stock is undervalued, which aligns with recent upgrades from analysts including increases in price targets to $190 from Jefferies and $185 from Barclays.

Shares of Sprouts Farmers Market, Inc. (NASDAQ:SFM - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the fifteen analysts that are presently covering the stock, Marketbeat reports. Seven investment analysts have rated the stock with a hold recommendation and eight have assigned a buy recommendation to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $173.7333.

A number of research firms recently weighed in on SFM. UBS Group set a $180.00 price objective on Sprouts Farmers Market in a research report on Thursday, July 31st. Jefferies Financial Group raised Sprouts Farmers Market from a "hold" rating to a "buy" rating and set a $190.00 target price for the company in a report on Friday, August 1st. Royal Bank Of Canada lifted their target price on Sprouts Farmers Market from $173.00 to $176.00 and gave the stock a "sector perform" rating in a report on Thursday, July 31st. Evercore ISI reduced their target price on Sprouts Farmers Market from $195.00 to $190.00 and set an "outperform" rating for the company in a report on Tuesday, August 12th. Finally, Wells Fargo & Company raised Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and lifted their target price for the stock from $175.00 to $180.00 in a report on Tuesday, August 5th.

Sprouts Farmers Market Stock Performance

Shares of SFM traded down $1.97 on Friday, reaching $136.67. The stock had a trading volume of 533,784 shares, compared to its average volume of 1,721,839. The firm has a market capitalization of $13.36 billion, a price-to-earnings ratio of 28.12, a price-to-earnings-growth ratio of 1.59 and a beta of 0.86. The company has a 50-day simple moving average of $155.01 and a 200-day simple moving average of $156.70. Sprouts Farmers Market has a 12-month low of $96.05 and a 12-month high of $182.00.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) last released its earnings results on Wednesday, July 30th. The company reported $1.35 EPS for the quarter, beating analysts' consensus estimates of $1.23 by $0.12. Sprouts Farmers Market had a return on equity of 36.53% and a net margin of 5.77%.The company had revenue of $2.22 billion during the quarter, compared to analysts' expectations of $2.16 billion. During the same quarter last year, the business posted $0.94 EPS. The firm's revenue for the quarter was up 17.3% compared to the same quarter last year. Sprouts Farmers Market has set its FY 2025 guidance at 5.200-5.320 EPS. Q3 2025 guidance at 1.120-1.160 EPS. On average, analysts expect that Sprouts Farmers Market will post 4.29 EPS for the current fiscal year.

Sprouts Farmers Market announced that its board has approved a share buyback program on Tuesday, August 19th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other Sprouts Farmers Market news, Director Joseph D. O'leary sold 2,937 shares of Sprouts Farmers Market stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $150.07, for a total value of $440,755.59. Following the completion of the sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Timmi Zalatoris sold 2,000 shares of Sprouts Farmers Market stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $164.38, for a total value of $328,760.00. Following the completion of the sale, the insider directly owned 13,263 shares of the company's stock, valued at $2,180,171.94. The trade was a 13.10% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 34,692 shares of company stock worth $5,393,386. 1.10% of the stock is owned by corporate insiders.

Institutional Trading of Sprouts Farmers Market

Several large investors have recently modified their holdings of the company. Centaurus Financial Inc. grew its holdings in shares of Sprouts Farmers Market by 29.3% in the second quarter. Centaurus Financial Inc. now owns 1,196 shares of the company's stock worth $197,000 after acquiring an additional 271 shares during the period. Orion Porfolio Solutions LLC lifted its position in Sprouts Farmers Market by 16.1% during the second quarter. Orion Porfolio Solutions LLC now owns 23,021 shares of the company's stock valued at $3,790,000 after purchasing an additional 3,198 shares in the last quarter. B. Riley Wealth Advisors Inc. purchased a new position in Sprouts Farmers Market during the second quarter valued at $1,493,000. Newbridge Financial Services Group Inc. purchased a new position in Sprouts Farmers Market during the second quarter valued at $29,000. Finally, Advisory Services Network LLC lifted its position in Sprouts Farmers Market by 1.0% during the second quarter. Advisory Services Network LLC now owns 13,486 shares of the company's stock valued at $2,044,000 after purchasing an additional 139 shares in the last quarter.

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.