Sweetgreen (NYSE:SG) Shares Down 5.4% - Time to Sell?

Key Points

• Sweetgreen's shares fell 5.4% to $8.45, with a significant decline in trading volume, down 44% from average levels.
• Analyst ratings vary, with TD Securities maintaining a hold rating and lowering their target price, while Goldman Sachs rated it neutral with a target cut to $15.00.
• In its last earnings report, Sweetgreen missed expectations with a reported EPS of ($0.20) against an estimate of ($0.12), and revenue also fell short at $185.58 million.

Shares of Sweetgreen, Inc. (NYSE:SG - Get Free Report) traded down 5.4% on Monday . The company traded as low as $8.47 and last traded at $8.45. 2,702,992 shares were traded during trading, a decline of 44% from the average session volume of 4,838,738 shares. The stock had previously closed at $8.93.

Analyst Upgrades and Downgrades

SG has been the topic of several analyst reports. TD Securities reiterated a "hold" rating and set a $15.00 target price (down from $25.00) on shares of Sweetgreen in a research report on Tuesday, July 1st. The Goldman Sachs Group lowered their target price on shares of Sweetgreen from $23.00 to $15.00 and set a "neutral" rating for the company in a research note on Wednesday, June 4th. Bank of America reduced their price objective on Sweetgreen from $27.00 to $22.00 and set a "buy" rating for the company in a research note on Friday, July 18th. TD Cowen cut their price target on Sweetgreen from $15.00 to $10.00 and set a "hold" rating for the company in a report on Friday, August 8th. Finally, 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. Seven equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $17.69.

Sweetgreen Stock Performance

The company has a 50-day simple moving average of $11.83 and a two-hundred day simple moving average of $16.31. The stock has a market cap of $981.73 million, a price-to-earnings ratio of -9.92 and a beta of 2.01.

Sweetgreen (NYSE:SG - Get Free Report) last issued its earnings results 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). The company had revenue of $185.58 million during the quarter, compared to analyst estimates of $193.47 million. Sweetgreen had a negative net margin of 14.29% and a negative return on equity of 22.21%. The business's quarterly revenue was up .5% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.13) EPS. Sweetgreen has set its FY 2025 guidance at EPS. As a group, sell-side analysts predict that Sweetgreen, Inc. will post -0.74 earnings per share for the current fiscal year.

Insider Transactions at Sweetgreen

In related news, CFO Mitch Reback sold 11,530 shares of Sweetgreen stock in a transaction on Monday, August 18th. The shares were sold at an average price of $9.19, for a total value of $105,960.70. Following the transaction, the chief financial officer directly owned 322,891 shares of the company's stock, 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 filing with the Securities & Exchange Commission, which is available through this link. 19.78% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sweetgreen

A number of hedge funds have recently made changes to their positions in SG. Tower Research Capital LLC TRC lifted its stake in shares of Sweetgreen by 45.7% in the fourth quarter. Tower Research Capital LLC TRC now owns 1,574 shares of the company's stock worth $50,000 after buying an additional 494 shares in the last quarter. Spire Wealth Management increased its position in Sweetgreen by 47.1% in the 1st quarter. Spire Wealth Management now owns 1,983 shares of the company's stock valued at $50,000 after acquiring an additional 635 shares during the period. Teacher Retirement System of Texas boosted its stake in shares of Sweetgreen by 5.8% in the second quarter. Teacher Retirement System of Texas now owns 15,981 shares of the company's stock valued at $238,000 after buying an additional 877 shares in the last quarter. Nisa Investment Advisors LLC raised its stake in shares of Sweetgreen by 98.2% during the 2nd quarter. Nisa Investment Advisors LLC now owns 2,129 shares of the company's stock worth $32,000 after buying an additional 1,055 shares during the last quarter. Finally, Forum Financial Management LP lifted its stake in shares of Sweetgreen by 17.5% during the 4th quarter. Forum Financial Management LP now owns 8,112 shares of the company's stock worth $260,000 after purchasing an additional 1,209 shares during the period. 95.75% of the stock is currently owned by hedge funds and other institutional investors.

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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