Sweetgreen (NYSE:SG) Shares Gap Up After Analyst Upgrade

Key Points

• Sweetgreen shares gapped up after JPMorgan Chase upgraded the stock from neutral to overweight, raising its price target to $13 from $8. The stock opened at $9.92 versus a prior close of $8.98.
• Analyst sentiment on Sweetgreen remains mixed overall, with MarketBeat showing an average Hold rating and a consensus price target of $7.98. Across analysts, there are four Buy ratings, twelve Hold ratings, and three Sell ratings.
• Sweetgreen’s latest quarterly results missed expectations, with EPS of -$0.27 versus an expected -$0.23 and revenue of $161.52 million below estimates. Revenue also fell 2.9% year over year, though insiders and institutional investors have recently been active buyers.

Sweetgreen, Inc. (NYSE:SG - Get Free Report)'s share price gapped up prior to trading on Friday after JPMorgan Chase & Co. upgraded the stock from a neutral rating to an overweight rating. The stock had previously closed at $8.98, but opened at $9.92. JPMorgan Chase & Co. now has a $13.00 price target on the stock, up from their previous price target of $8.00. Sweetgreen shares last traded at $9.6780, with a volume of 2,387,178 shares.

A number of other equities research analysts have also commented on SG. UBS Group upped their price objective on shares of Sweetgreen from $6.50 to $7.00 and gave the company a "neutral" rating in a research note on Friday, May 8th. Wolfe Research began coverage on shares of Sweetgreen in a report on Monday, March 9th. They issued a "peer perform" rating on the stock. Royal Bank Of Canada decreased their price target on Sweetgreen from $8.00 to $7.00 and set an "outperform" rating for the company in a report on Friday, February 27th. The Goldman Sachs Group lifted their price objective on Sweetgreen from $5.00 to $5.60 and gave the stock a "sell" rating in a research report on Wednesday, January 28th. Finally, TD Cowen upped their target price on Sweetgreen from $5.00 to $7.00 and gave the company a "hold" rating in a research report on Friday, May 8th. Four equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $7.98.

Insiders Place Their Bets

In other news, major shareholder Goldman Sachs Group Inc bought 594,553 shares of Sweetgreen stock in a transaction dated Tuesday, April 7th. The stock was bought at an average cost of $5.69 per share, for a total transaction of $3,383,006.57. Following the purchase, the insider directly owned 11,900,255 shares in the company, valued at approximately $67,712,450.95. This represents a 5.26% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Nicolas Jammet bought 4,428 shares of the firm's stock in a transaction that occurred on Thursday, March 5th. The stock was purchased at an average cost of $5.71 per share, with a total value of $25,283.88. Following the completion of the transaction, the insider directly 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 SEC filing for this purchase provides additional information. Company insiders own 19.78% of the company's stock.

Hedge Funds Weigh In On Sweetgreen

A number of institutional investors have recently modified their holdings of the company. Larson Financial Group LLC grew its position in 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 during the period. Skandinaviska Enskilda Banken AB publ raised its holdings in Sweetgreen by 124.1% during the third quarter. Skandinaviska Enskilda Banken AB publ now owns 6,292 shares of the company's stock worth $50,000 after buying an additional 3,484 shares during the last quarter. Fifth Third Bancorp bought a new position in shares of Sweetgreen in the first quarter valued at $38,000. CWM LLC grew its holdings in shares of Sweetgreen by 212.2% during the fourth quarter. CWM LLC now owns 7,333 shares of the company's stock valued at $50,000 after buying an additional 4,984 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its holdings in shares of Sweetgreen by 281.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 7,912 shares of the company's stock valued at $53,000 after buying an additional 5,839 shares during the last quarter. 95.75% of the stock is owned by institutional investors and hedge funds.

Sweetgreen Stock Up 6.1%

The company has a market capitalization of $1.13 billion, a P/E ratio of 79.89 and a beta of 2.03. The firm's 50-day moving average price is $6.31 and its 200 day moving average price is $6.39.

Sweetgreen (NYSE:SG - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.27) earnings per share for the quarter, missing the consensus estimate of ($0.23) by ($0.04). The business had revenue of $161.52 million during the quarter, compared to the consensus estimate of $163.95 million. Sweetgreen had a net margin of 2.49% and a negative return on equity of 33.07%. Sweetgreen's revenue was down 2.9% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.21) EPS. As a group, equities research analysts expect that Sweetgreen, Inc. will post -0.76 EPS for the current year.

Sweetgreen Company Profile

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.

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