Sweetgreen (NYSE:SG) Downgraded to Strong Sell Rating by Zacks Research

Key Points

• Sweetgreen has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating, signaling potential investor caution.
• Bank of America has reduced its price target for Sweetgreen shares from $18.00 to $9.50, while other analysts have also adjusted their targets downward.
• The company reported a loss of ($0.20) EPS for the last quarter, missing expectations and indicating challenges in revenue and profitability.

Sweetgreen (NYSE:SG - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other research analysts also recently commented on the stock. Bank of America reaffirmed a "neutral" rating and issued a $9.50 price target (down previously from $18.00) on shares of Sweetgreen in a report on Monday, October 6th. TD Cowen lowered their price target on shares of Sweetgreen from $15.00 to $10.00 and set a "hold" rating for the company in a report on Friday, August 8th. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $19.00 price target on shares of Sweetgreen in a report on Tuesday, July 1st. Morgan Stanley lowered their price target on shares of Sweetgreen from $22.00 to $17.00 and set an "equal weight" rating for the company in a report on Monday, July 14th. Finally, William Blair reaffirmed an "outperform" rating on shares of Sweetgreen in a report on Friday, September 5th. Six research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $16.73.

Sweetgreen Stock Down 2.0%

SG opened at $7.54 on Tuesday. The firm has a 50-day simple moving average of $8.71 and a two-hundred day simple moving average of $13.37. Sweetgreen has a 52 week low of $7.23 and a 52 week high of $45.12. The company has a market capitalization of $890.71 million, a PE ratio of -8.97 and a beta of 1.97.

Sweetgreen (NYSE:SG - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.20) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.08). Sweetgreen had a negative net margin of 14.29% and a negative return on equity of 22.21%. The company had revenue of $185.58 million for the quarter, compared to the consensus estimate of $193.47 million. During the same period last year, the company earned ($0.13) EPS. The firm's revenue for the quarter was up .5% on a year-over-year basis. Sweetgreen has set its FY 2025 guidance at EPS. As a group, sell-side analysts expect that Sweetgreen will post -0.74 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Mitch Reback sold 11,530 shares of the stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $9.19, for a total value of $105,960.70. Following the sale, the chief financial officer directly owned 322,891 shares of the company's stock, valued at $2,967,368.29. This represents a 3.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 19.78% of the stock is owned by company insiders.

Institutional Trading of Sweetgreen

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Greenhouse Funds LLLP purchased a new position in shares of Sweetgreen during the second quarter worth approximately $32,122,000. Wellington Management Group LLP increased its position in shares of Sweetgreen by 30.0% during the first quarter. Wellington Management Group LLP now owns 5,762,598 shares of the company's stock worth $144,180,000 after acquiring an additional 1,330,094 shares during the period. Champlain Investment Partners LLC purchased a new position in shares of Sweetgreen during the first quarter worth approximately $31,558,000. Stephens Investment Management Group LLC increased its position in shares of Sweetgreen by 89.5% during the second quarter. Stephens Investment Management Group LLC now owns 2,567,526 shares of the company's stock worth $38,205,000 after acquiring an additional 1,212,708 shares during the period. Finally, Blair William & Co. IL increased its position in shares of Sweetgreen by 891.1% during the second quarter. Blair William & Co. IL now owns 1,157,405 shares of the company's stock worth $17,222,000 after acquiring an additional 1,040,629 shares during the period. 95.75% of the stock is owned by hedge funds and other institutional investors.

About Sweetgreen

Sweetgreen, Inc, together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.

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