Sprouts Farmers Market (NASDAQ:SFM) Price Target Cut to $120.00 by Analysts at BMO Capital Markets

Key Points

• BMO Capital Markets has cut its target price for Sprouts Farmers Market from $170.00 to $120.00, while maintaining a "market perform" rating on the stock, indicating a potential upside of 9.05%.
• Multiple analysts have varied opinions on Sprouts Farmers Market, with Barclays raising their target price to $185.00 and the Goldman Sachs Group reducing theirs to $178.00 while keeping a "buy" rating.
• The company reported a 17.3% increase in revenue year-over-year, posting $2.22 billion during the last quarter, alongside earnings per share (EPS) of $1.35, exceeding expectations of $1.23.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) had its target price decreased by stock analysts at BMO Capital Markets from $170.00 to $120.00 in a research note issued on Wednesday,Benzinga reports. The firm currently has a "market perform" rating on the stock. BMO Capital Markets' price target indicates a potential upside of 9.05% from the company's current price.

SFM has been the topic of several other research reports. Barclays raised Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and upped their target price for the company from $173.00 to $185.00 in a report on Thursday, July 31st. The Goldman Sachs Group lowered their target price on Sprouts Farmers Market from $209.00 to $178.00 and set a "buy" rating on the stock in a report on Wednesday. JPMorgan Chase & Co. started coverage on Sprouts Farmers Market in a report on Wednesday, August 20th. They issued a "neutral" rating and a $159.00 target price on the stock. Royal Bank Of Canada set a $148.00 target price on Sprouts Farmers Market and gave the company an "outperform" rating in a report on Monday, October 13th. Finally, Weiss Ratings reissued a "buy (b-)" rating on shares of Sprouts Farmers Market in a report on Tuesday, October 14th. Ten research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $170.07.

Sprouts Farmers Market Stock Performance

NASDAQ:SFM opened at $110.04 on Wednesday. The stock has a fifty day moving average price of $125.87 and a two-hundred day moving average price of $149.49. The stock has a market capitalization of $10.75 billion, a price-to-earnings ratio of 22.64, a PEG ratio of 1.25 and a beta of 0.77. Sprouts Farmers Market has a 1 year low of $98.75 and a 1 year high of $182.00.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $1.35 earnings per share (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 analysts' expectations of $2.16 billion. Sprouts Farmers Market had a return on equity of 36.53% and a net margin of 5.77%.Sprouts Farmers Market's revenue was up 17.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $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. On average, analysts predict that Sprouts Farmers Market will post 4.29 EPS for the current year.

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

Insider Transactions at Sprouts Farmers Market

In other Sprouts Farmers Market news, SVP Kim Coffin sold 651 shares of the firm's stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $141.58, for a total value of $92,168.58. Following the sale, the senior vice president directly owned 11,235 shares of the company's stock, valued at approximately $1,590,651.30. This trade represents a 5.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Joe Fortunato sold 10,000 shares of the firm's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $147.57, for a total value of $1,475,700.00. Following the completion of the sale, the director directly owned 18,164 shares in the company, valued at approximately $2,680,461.48. The trade was a 35.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 38,429 shares of company stock worth $5,351,362 in the last quarter. 1.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Sprouts Farmers Market

A number of hedge funds have recently added to or reduced their stakes in SFM. GAMMA Investing LLC boosted its stake in Sprouts Farmers Market by 20.1% in the 1st quarter. GAMMA Investing LLC now owns 2,347 shares of the company's stock worth $358,000 after buying an additional 393 shares during the last quarter. Wealth Enhancement Advisory Services LLC lifted its stake in shares of Sprouts Farmers Market by 19.5% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 7,114 shares of the company's stock valued at $1,086,000 after purchasing an additional 1,160 shares in the last quarter. Cambridge Investment Research Advisors Inc. lifted its stake in shares of Sprouts Farmers Market by 60.0% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 42,978 shares of the company's stock valued at $6,560,000 after purchasing an additional 16,118 shares in the last quarter. Flagship Harbor Advisors LLC lifted its stake in shares of Sprouts Farmers Market by 4.1% in the 1st quarter. Flagship Harbor Advisors LLC now owns 3,797 shares of the company's stock valued at $580,000 after purchasing an additional 150 shares in the last quarter. Finally, Oppenheimer Asset Management Inc. lifted its stake in shares of Sprouts Farmers Market by 1.1% in the 1st quarter. Oppenheimer Asset Management Inc. now owns 14,592 shares of the company's stock valued at $2,227,000 after purchasing an additional 165 shares in the last quarter.

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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