Sweetgreen (NYSE:SG) Shares Down 6.7% - Time to Sell?

Key Points

• Shares fell 6.7% to $5.745 amid thin mid-day volume after Sweetgreen reported a quarterly EPS and revenue miss (‑$0.42 vs. ‑$0.31 expected; $155.2M vs. $159.6M expected), with negative net margin and a 3.5% YoY revenue decline.
• Several brokerages have trimmed ratings and price targets (Wells Fargo cut to "equal weight" with a $7 target; Morgan Stanley and others lowered targets), leaving a consensus "Hold" rating and an average price target of $7.84.
• Insider and major investor buying: co‑founder Nicolas Jammet bought 4,428 shares and Goldman Sachs purchased 594,553 shares, with insiders owning about 19.8% of the stock while institutions hold roughly 95.8%.

Sweetgreen, Inc. (NYSE:SG - Get Free Report)'s share price fell 6.7% during mid-day trading on Monday . The stock traded as low as $5.57 and last traded at $5.7450. 930,693 shares traded hands during mid-day trading, a decline of 78% from the average session volume of 4,221,495 shares. The stock had previously closed at $6.16.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on SG. Wells Fargo & Company cut shares of Sweetgreen from an "overweight" rating to an "equal weight" rating and lowered their target price for the company from $10.00 to $7.00 in a report on Wednesday, December 17th. Morgan Stanley lowered their target price on shares of Sweetgreen from $10.00 to $9.00 and set an "equal weight" rating for the company in a report on Tuesday, January 20th. Citizens Jmp began coverage on shares of Sweetgreen in a report on Monday, March 30th. They issued a "mkt underperform" rating and a $4.50 target price for the company. Weiss Ratings restated a "sell (e+)" rating on shares of Sweetgreen in a report on Friday, March 27th. Finally, The Goldman Sachs Group increased their price target on shares of Sweetgreen from $5.00 to $5.60 and gave the stock a "sell" rating in a research note on Wednesday, January 28th. Three research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $7.84.

Sweetgreen Stock Performance

The company has a market cap of $680.06 million, a PE ratio of -5.03 and a beta of 1.90. The stock's 50-day simple moving average is $5.55 and its 200 day simple moving average is $6.49.

Sweetgreen (NYSE:SG - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.42) EPS for the quarter, missing analysts' consensus estimates of ($0.31) by ($0.11). The firm had revenue of $155.19 million for the quarter, compared to analysts' expectations of $159.59 million. Sweetgreen had a negative return on equity of 32.26% and a negative net margin of 19.73%.The firm's quarterly revenue was down 3.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.25) EPS. On average, sell-side analysts predict that Sweetgreen, Inc. will post -0.74 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Nicolas Jammet acquired 4,428 shares of the business's stock in a transaction on Thursday, March 5th. The stock was bought at an average price of $5.71 per share, for a total transaction of $25,283.88. Following the transaction, the insider owned 22,543 shares in the company, valued at $128,720.53. This represents a 24.44% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, major shareholder Goldman Sachs Group Inc acquired 594,553 shares of the business's stock in a transaction on Tuesday, April 7th. The shares were purchased at an average price of $5.69 per share, with a total value of $3,383,006.57. Following the transaction, the insider owned 11,900,255 shares in the company, valued at $67,712,450.95. The trade was a 5.26% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 19.78% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Sweetgreen

A number of large investors have recently bought and sold shares of SG. Larson Financial Group LLC increased its holdings in shares of Sweetgreen by 165.8% in the 3rd quarter. Larson Financial Group LLC now owns 3,766 shares of the company's stock valued at $30,000 after purchasing an additional 2,349 shares in the last quarter. Certuity LLC increased its holdings in shares of Sweetgreen by 0.8% in the 4th quarter. Certuity LLC now owns 302,500 shares of the company's stock valued at $2,045,000 after purchasing an additional 2,500 shares in the last quarter. Kingswood Wealth Advisors LLC increased its holdings in shares of Sweetgreen by 18.7% in the 4th quarter. Kingswood Wealth Advisors LLC now owns 17,202 shares of the company's stock valued at $116,000 after purchasing an additional 2,715 shares in the last quarter. Tower Research Capital LLC TRC increased its holdings in shares of Sweetgreen by 26.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 14,362 shares of the company's stock valued at $214,000 after purchasing an additional 2,987 shares in the last quarter. Finally, Skandinaviska Enskilda Banken AB publ increased its holdings in shares of Sweetgreen by 124.1% in the 3rd quarter. Skandinaviska Enskilda Banken AB publ now owns 6,292 shares of the company's stock valued at $50,000 after purchasing an additional 3,484 shares in the last quarter. Hedge funds and other institutional investors own 95.75% of the company's stock.

About Sweetgreen

Sweetgreen, Inc is a fast-casual restaurant chain specializing in salads, grain bowls and warm bowls that emphasize fresh, locally sourced ingredients. Since its founding in 2007 by Jonathan Neman, Nicolas Jammet and Nathaniel Ru, Sweetgreen has focused on sustainable agriculture, working with regional farmers across the United States to provide seasonal produce and promote environmentally responsible sourcing practices. The company's menu features a variety of plant-forward options, including custom-build salads, chef-curated bowls and limited-time offerings that reflect changing harvests.

Sweetgreen operates a technology-driven service model that combines in-store experiences with digital ordering through its mobile app and website.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.