Sprouts Farmers Market (NASDAQ:SFM) Hits New 52-Week Low - Here's Why

Key Points

• Sprouts Farmers Market shares reached a new 52-week low of $102.04 during trading, a drop from the previous close of $105.93, with a trading volume of 892,882 shares.
• Recent analyst ratings reflect mixed sentiment, with Evercore ISI lowering their price target to $170 while Wells Fargo upgraded their rating and increased the target to $180.
• The company reported a net margin of 5.77% and year-over-year revenue growth of 17.3%, with quarterly earnings of $1.35 per share, surpassing the consensus estimate of $1.23.

Shares of Sprouts Farmers Market, Inc. (NASDAQ:SFM - Get Free Report) hit a new 52-week low during trading on Monday . The company traded as low as $102.04 and last traded at $102.66, with a volume of 892882 shares traded. The stock had previously closed at $105.93.

Analyst Ratings Changes

A number of research firms have recently weighed in on SFM. Evercore ISI cut their price objective on shares of Sprouts Farmers Market from $190.00 to $170.00 and set an "outperform" rating on the stock in a research note on Friday. Wells Fargo & Company upgraded shares of Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and increased their price objective for the stock from $175.00 to $180.00 in a research note on Tuesday, August 5th. Royal Bank Of Canada increased their price objective on shares of Sprouts Farmers Market from $173.00 to $176.00 and gave the stock a "sector perform" rating in a research note on Thursday, July 31st. Barclays upgraded shares of Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and increased their price objective for the stock from $173.00 to $185.00 in a research note on Thursday, July 31st. Finally, UBS Group set a $180.00 price objective on shares of Sprouts Farmers Market in a research note on Thursday, July 31st. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $177.21.

Sprouts Farmers Market Stock Down 3.9%

The company has a market cap of $9.94 billion, a price-to-earnings ratio of 20.94, a price-to-earnings-growth ratio of 1.20 and a beta of 0.77. The company's 50-day moving average is $136.66 and its 200 day moving average is $153.03.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $1.35 EPS for the quarter, beating the consensus estimate of $1.23 by $0.12. Sprouts Farmers Market had a net margin of 5.77% and a return on equity of 36.53%. The company had revenue of $2.22 billion for the quarter, compared to analyst estimates of $2.16 billion. During the same quarter last year, the business earned $0.94 earnings per share. The firm's revenue was up 17.3% on a year-over-year basis. 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 predict that Sprouts Farmers Market, Inc. will post 4.29 EPS for the current fiscal year.

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

Insider Transactions at Sprouts Farmers Market

In other news, CTO James H. Bahrenburg sold 4,292 shares of the firm's stock in a transaction dated Friday, September 12th. The shares were sold at an average price of $137.06, for a total value of $588,261.52. Following the transaction, the chief technology officer directly owned 9,167 shares of the company's stock, valued at approximately $1,256,429.02. This trade represents a 31.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Dustin Hamilton sold 7,200 shares of Sprouts Farmers Market stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $138.95, for a total transaction of $1,000,440.00. Following the transaction, the insider directly owned 16,349 shares in the company, valued at $2,271,693.55. This trade represents a 30.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 33,516 shares of company stock valued at $4,840,549. Company insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On Sprouts Farmers Market

Institutional investors have recently made changes to their positions in the stock. Sowell Financial Services LLC acquired a new stake in shares of Sprouts Farmers Market during the first quarter valued at about $270,000. Maverick Capital Ltd. acquired a new position in shares of Sprouts Farmers Market in the first quarter valued at approximately $8,341,000. Andrew Hill Investment Advisors Inc. acquired a new stake in Sprouts Farmers Market during the 2nd quarter worth approximately $3,128,000. Silver Oak Securities Incorporated purchased a new position in Sprouts Farmers Market in the 2nd quarter valued at approximately $727,000. Finally, Voya Investment Management LLC boosted its position in Sprouts Farmers Market by 49.4% in the 1st quarter. Voya Investment Management LLC now owns 54,798 shares of the company's stock valued at $8,364,000 after buying an additional 18,123 shares during the period.

About Sprouts Farmers Market

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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