Sprouts Farmers Market (NASDAQ:SFM) Sets New 52-Week Low - Should You Sell?

Key Points

• Sprouts Farmers Market hit a new 52-week low of $107.65 during trading, indicating potential concern among investors as the stock traded down 0.2% to $108.82.
• Despite recent declines, analysts have optimistic views with eight analysts rating the stock as a Buy and a target price averaging $178.64.
• The company reported a beat on earnings with $1.35 EPS for the last quarter, exceeding expectations, and established FY 2025 guidance indicating robust growth potential.

Sprouts Farmers Market, Inc. (NASDAQ:SFM - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $107.65 and last traded at $108.82, with a volume of 317295 shares changing hands. The stock had previously closed at $109.45.

Wall Street Analyst Weigh In

Several analysts have issued reports on SFM shares. Barclays raised Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and increased their target price for the company from $173.00 to $185.00 in a research report on Thursday, July 31st. Royal Bank Of Canada increased their target price on 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. Wells Fargo & Company raised Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and increased their target price for the company from $175.00 to $180.00 in a research report on Tuesday, August 5th. UBS Group set a $180.00 price objective on Sprouts Farmers Market in a report on Thursday, July 31st. Finally, 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 research note on Tuesday, August 12th. Eight analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $178.64.

Sprouts Farmers Market Trading Down 0.2%

The stock has a market capitalization of $10.67 billion, a price-to-earnings ratio of 22.48, a PEG ratio of 1.24 and a beta of 0.87. The stock has a 50-day moving average price of $141.18 and a 200 day moving average price of $153.96.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) last posted 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 firm had revenue of $2.22 billion for the quarter, compared to analysts' expectations of $2.16 billion. During the same period last year, the firm earned $0.94 EPS. The company's quarterly 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. Equities research analysts anticipate that Sprouts Farmers Market, Inc. will post 4.29 earnings per share for the current year.

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

Insiders Place Their Bets

In other news, Director Joseph D. O'leary sold 2,937 shares of Sprouts Farmers Market 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 sale, the director owned 14,994 shares of the company's stock, valued at approximately $2,250,149.58. The trade was a 16.38% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Dustin Hamilton sold 7,200 shares of Sprouts Farmers Market stock in a transaction that occurred on Thursday, September 11th. The shares were sold at an average price of $138.95, for a total transaction of $1,000,440.00. Following the sale, the insider directly owned 16,349 shares in the company, valued at approximately $2,271,693.55. The trade was a 30.57% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 37,561 shares of company stock worth $5,499,641. 1.10% of the stock is currently owned by insiders.

Institutional Trading of Sprouts Farmers Market

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

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