Sprouts Farmers Market (NASDAQ:SFM) Rating Increased to Outperform at Royal Bank Of Canada

Key Points

• Sprouts Farmers Market was upgraded from a "hold" rating to a "moderate buy" by analysts at Royal Bank Of Canada, indicating increased investor confidence.
• The stock has a consensus target price of $175.21 and is currently trading at $106.59, reflecting potential for growth.
• Recent quarterly results showed earnings per share of $1.35, surpassing estimates and indicating a 17.3% revenue increase year-over-year.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) was upgraded by stock analysts at Royal Bank Of Canada from a "sector perform" rating to an "outperform" rating in a report released on Monday, Marketbeat Ratings reports. The firm currently has a $148.00 price objective on the stock, down from their prior price objective of $176.00. Royal Bank Of Canada's target price suggests a potential upside of 38.85% from the company's current price.

A number of other research analysts have also recently commented on the company. Wells Fargo & Company upgraded Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and boosted their price objective for the stock from $175.00 to $180.00 in a research note on Tuesday, August 5th. Barclays raised Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and lifted their target price for the stock from $173.00 to $185.00 in a research report on Thursday, July 31st. JPMorgan Chase & Co. initiated coverage on Sprouts Farmers Market in a research report on Wednesday, August 20th. They set a "neutral" rating and a $159.00 target price on the stock. UBS Group set a $180.00 target price on Sprouts Farmers Market in a research report on Thursday, July 31st. Finally, Wall Street Zen raised Sprouts Farmers Market from a "hold" rating to a "buy" rating in a research report on Sunday, September 21st. Ten analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $175.21.

Sprouts Farmers Market Trading Up 3.7%

Shares of Sprouts Farmers Market stock opened at $106.59 on Monday. Sprouts Farmers Market has a twelve month low of $98.75 and a twelve month high of $182.00. The stock has a market capitalization of $10.42 billion, a P/E ratio of 21.93, a PEG ratio of 1.16 and a beta of 0.77. The business's fifty day moving average price is $130.43 and its 200 day moving average price is $151.21.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $1.35 earnings per share 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 firm had revenue of $2.22 billion for the quarter, compared to analysts' expectations of $2.16 billion. During the same quarter last year, the firm earned $0.94 earnings per share. 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. As a group, sell-side analysts predict that Sprouts Farmers Market will post 4.29 EPS for the current year.

Sprouts Farmers Market declared that its Board of Directors has approved a share buyback plan on Tuesday, August 19th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to purchase shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In other Sprouts Farmers Market news, insider Dustin Hamilton sold 7,200 shares of Sprouts Farmers Market stock in a transaction that occurred on Thursday, September 11th. The stock was sold at an average price of $138.95, for a total value of $1,000,440.00. Following the completion of the transaction, the insider directly owned 16,349 shares in the company, valued at $2,271,693.55. The trade was a 30.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CTO James H. Bahrenburg sold 4,292 shares of Sprouts Farmers Market stock in a transaction that occurred on Friday, September 12th. The shares were sold at an average price of $137.06, for a total value of $588,261.52. Following the completion of the transaction, the chief technology officer owned 9,167 shares of the company's stock, valued at approximately $1,256,429.02. The trade was a 31.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 37,561 shares of company stock valued at $5,257,184 over the last 90 days. 1.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sprouts Farmers Market

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Newbridge Financial Services Group Inc. acquired a new stake in Sprouts Farmers Market in the second quarter worth approximately $29,000. Dogwood Wealth Management LLC acquired a new stake in Sprouts Farmers Market during the 1st quarter valued at $30,000. Truvestments Capital LLC acquired a new stake in Sprouts Farmers Market during the 1st quarter valued at $35,000. SVB Wealth LLC acquired a new stake in Sprouts Farmers Market during the 1st quarter valued at $36,000. Finally, Brooklyn Investment Group grew its stake in Sprouts Farmers Market by 12,100.0% in the first quarter. Brooklyn Investment Group now owns 244 shares of the company's stock valued at $37,000 after purchasing an additional 242 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.