Sweetgreen (NYSE:SG) Sets New 1-Year Low Following Weak Earnings

Key Points

• Sweetgreen's share price hit a new 52-week low of $8.82 following a disappointing earnings report, with a loss of ($0.20) EPS against the expected ($0.12).
• Several analysts have downgraded their price targets for Sweetgreen, with TD Cowen reducing it from $15.00 to $10.00 and Morgan Stanley from $22.00 to $17.00.
• Despite recent poor performance, 95.75% of Sweetgreen’s shares are held by institutional investors, indicating significant institutional faith in the company’s future.

Sweetgreen, Inc. (NYSE:SG - Get Free Report)'s share price reached a new 52-week low on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $8.82 and last traded at $9.06, with a volume of 1130161 shares trading hands. The stock had previously closed at $12.66.

The company reported ($0.20) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.08). The company had revenue of $185.58 million for the quarter, compared to analysts' expectations of $193.47 million. Sweetgreen had a negative return on equity of 19.72% and a negative net margin of 13.04%. The firm's revenue was up .5% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.13) EPS.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on SG shares. TD Cowen lowered their target price on shares of Sweetgreen from $15.00 to $10.00 and set a "hold" rating on the stock in a research report on Friday. TD Securities reaffirmed a "hold" rating and set a $15.00 price target (down from $25.00) on shares of Sweetgreen in a research note on Tuesday, July 1st. Barclays increased their target price on Sweetgreen from $16.00 to $17.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 17th. Morgan Stanley dropped their price objective on shares of Sweetgreen from $22.00 to $17.00 and set an "equal weight" rating for the company in a research report on Monday, July 14th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Sweetgreen from $20.00 to $16.00 and set a "neutral" rating for the company in a research report on Wednesday, June 25th. Eight research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to data from MarketBeat.com, Sweetgreen has a consensus rating of "Hold" and an average price target of $21.15.

Insider Buying and Selling at Sweetgreen

In other Sweetgreen news, Director Clifford Burrows bought 19,200 shares of the stock in a transaction on Friday, May 23rd. The stock was purchased at an average price of $13.11 per share, with a total value of $251,712.00. Following the completion of the purchase, the director owned 19,200 shares in the company, valued at $251,712. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Mitch Reback sold 10,088 shares of Sweetgreen stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $15.23, for a total value of $153,640.24. Following the transaction, the chief financial officer directly owned 334,421 shares in the company, valued at $5,093,231.83. The trade was a 2.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. 21.52% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of SG. Glass Jacobson Investment Advisors llc purchased a new stake in Sweetgreen during the second quarter valued at approximately $30,000. Nisa Investment Advisors LLC increased its stake in Sweetgreen by 98.2% in the 2nd quarter. Nisa Investment Advisors LLC now owns 2,129 shares of the company's stock worth $32,000 after acquiring an additional 1,055 shares during the last quarter. Tower Research Capital LLC TRC lifted its position in Sweetgreen by 45.7% during the fourth quarter. Tower Research Capital LLC TRC now owns 1,574 shares of the company's stock valued at $50,000 after purchasing an additional 494 shares during the last quarter. Spire Wealth Management raised its position in Sweetgreen by 47.1% during the first quarter. Spire Wealth Management now owns 1,983 shares of the company's stock valued at $50,000 after purchasing an additional 635 shares during the period. Finally, Thematics Asset Management bought a new position in Sweetgreen during the fourth quarter valued at $69,000. 95.75% of the stock is currently owned by institutional investors.

Sweetgreen Trading Down 25.9%

The company has a market capitalization of $1.10 billion, a PE ratio of -11.80 and a beta of 2.04. The stock's 50-day moving average is $13.53 and its two-hundred day moving average is $19.40.

Sweetgreen Company Profile

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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