Sweetgreen (NYSE:SG) Hits New 1-Year Low - Should You Sell?

Key Points

• Sweetgreen's stock (NYSE:SG) reached a new 52-week low of $8.11 during trading, down from a previous close of $8.93.
• Analyst ratings for Sweetgreen fluctuate, with Wells Fargo maintaining an "overweight" rating and a $19 target, while other firms like Goldman Sachs and Barclays have lowered their targets significantly.
• In its latest earnings report, Sweetgreen reported a loss of ($0.20) EPS, missing expectations, with revenues also falling short at $185.58 million.

Sweetgreen, Inc. (NYSE:SG - Get Free Report) shares hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $8.11 and last traded at $8.25, with a volume of 13652193 shares traded. The stock had previously closed at $8.93.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Piper Sandler reduced their price objective on Sweetgreen from $20.00 to $12.00 and set a "neutral" rating on the stock in a research note on Friday, August 8th. TD Cowen cut their target price on Sweetgreen from $15.00 to $10.00 and set a "hold" rating on the stock in a research note on Friday, August 8th. JPMorgan Chase & Co. cut their target price on Sweetgreen from $20.00 to $16.00 and set a "neutral" rating on the stock in a research note on Wednesday, June 25th. Morgan Stanley cut their target price on Sweetgreen from $22.00 to $17.00 and set an "equal weight" rating on the stock in a research note on Monday, July 14th. Finally, Bank of America cut their target price on Sweetgreen from $27.00 to $22.00 and set a "buy" rating on the stock in a research note on Friday, July 18th. Seven research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $17.69.

Sweetgreen Stock Down 2.1%

The business's 50 day moving average is $11.21 and its two-hundred day moving average is $15.81. The firm has a market capitalization of $1.01 billion, a P/E ratio of -10.13 and a beta of 2.01.

Sweetgreen (NYSE:SG - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The company reported ($0.20) earnings per share for the quarter, missing analysts' consensus estimates 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 quarter in the prior year, the firm earned ($0.13) earnings per share. Sweetgreen's revenue for the quarter was up .5% compared to the same quarter last year. Sweetgreen has set its FY 2025 guidance at EPS. As a group, equities analysts anticipate that Sweetgreen, Inc. will post -0.74 earnings per share for the current fiscal year.

Insider Buying and Selling at Sweetgreen

In related news, CFO Mitch Reback sold 11,530 shares of Sweetgreen stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $9.19, for a total transaction of $105,960.70. Following the sale, the chief financial officer directly owned 322,891 shares in the company, valued at $2,967,368.29. The trade was a 3.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 19.78% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Sweetgreen

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Greenhouse Funds LLLP acquired a new position in Sweetgreen during the second quarter worth about $32,122,000. Wellington Management Group LLP grew its holdings in 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 acquired a new position in Sweetgreen during the first quarter worth about $31,558,000. Stephens Investment Management Group LLC grew its holdings in 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 grew its holdings in 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 currently owned by 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.