Sweetgreen (NYSE:SG) Shares Gap Down - Should You Sell?

Shares of Sweetgreen, Inc. (NYSE:SG - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $14.88, but opened at $14.08. Sweetgreen shares last traded at $14.16, with a volume of 1,034,230 shares.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on SG. UBS Group reduced their price target on Sweetgreen from $35.00 to $30.00 and set a "buy" rating for the company in a report on Monday, May 5th. The Goldman Sachs Group cut their price objective on shares of Sweetgreen from $23.00 to $15.00 and set a "neutral" rating on the stock in a research report on Wednesday, June 4th. JPMorgan Chase & Co. reduced their target price on shares of Sweetgreen from $20.00 to $16.00 and set a "neutral" rating for the company in a research note on Wednesday, June 25th. Oppenheimer decreased their target price on shares of Sweetgreen from $35.00 to $29.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. Finally, TD Securities restated a "hold" rating and set a $15.00 price target (down previously from $25.00) on shares of Sweetgreen in a report on Tuesday. Eight analysts have rated the stock with a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, Sweetgreen currently has a consensus rating of "Hold" and a consensus price target of $25.23.

Sweetgreen Trading Up 2.7%

The company's fifty day moving average is $14.79 and its 200-day moving average is $22.77. The firm has a market capitalization of $1.74 billion, a P/E ratio of -19.21 and a beta of 2.06.

Sweetgreen (NYSE:SG - Get Free Report) last released its earnings results on Thursday, May 8th. The company reported ($0.21) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.21). The firm had revenue of $166.30 million during the quarter, compared to analyst estimates of $164.68 million. Sweetgreen had a negative net margin of 13.04% and a negative return on equity of 19.72%. The business's revenue was up 5.3% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.23) EPS. On average, equities research analysts anticipate that Sweetgreen, Inc. will post -0.74 EPS for the current year.

Insider Buying and Selling

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

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in SG. Stifel Financial Corp increased its stake in Sweetgreen by 55.3% during the fourth quarter. Stifel Financial Corp now owns 12,562 shares of the company's stock valued at $403,000 after acquiring an additional 4,474 shares during the period. Wealth Enhancement Advisory Services LLC grew its holdings in shares of Sweetgreen by 4.6% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 29,191 shares of the company's stock worth $936,000 after purchasing an additional 1,278 shares in the last quarter. Envestnet Asset Management Inc. increased its position in shares of Sweetgreen by 54.9% during the fourth quarter. Envestnet Asset Management Inc. now owns 16,318 shares of the company's stock valued at $523,000 after purchasing an additional 5,783 shares during the period. LPL Financial LLC raised its stake in shares of Sweetgreen by 400.1% in the fourth quarter. LPL Financial LLC now owns 59,592 shares of the company's stock valued at $1,911,000 after purchasing an additional 47,676 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its position in Sweetgreen by 2.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 849,512 shares of the company's stock worth $27,235,000 after purchasing an additional 19,263 shares during the period. Institutional investors and hedge funds own 95.75% of the company's stock.

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.