Sweetgreen (NYSE:SG) Shares Gap Up - Here's Why

Key Points

• Sweetgreen shares jumped sharply before trading, opening at $6.71 after closing at $6.22 and later trading as high as $7.32, with the stock up about 16.4% on the day.
• Recent analyst moves were mixed but generally cautious: several firms raised price targets, and the current consensus from MarketBeat is a Hold with a $7.57 price target.
• The company’s fundamentals remain challenged, as its latest earnings missed estimates with a $0.27 loss per share and revenue of $161.52 million, while analysts expect a full-year loss of $0.76 per share.

Sweetgreen, Inc. (NYSE:SG - Get Free Report)'s stock price gapped up prior to trading on Friday . The stock had previously closed at $6.22, but opened at $6.71. Sweetgreen shares last traded at $7.32, with a volume of 2,879,393 shares.

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. DA Davidson boosted their price objective on Sweetgreen from $5.50 to $7.00 and gave the company a "neutral" rating in a report on Monday, May 11th. Wall Street Zen raised shares of Sweetgreen from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 23rd. TD Cowen lifted their price target on shares of Sweetgreen from $7.00 to $8.00 and gave the company a "hold" rating in a research report on Wednesday, May 27th. Weiss Ratings upgraded shares of Sweetgreen from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, May 22nd. Finally, Citizens Jmp started coverage on shares of Sweetgreen in a report on Monday, March 30th. They set a "mkt underperform" rating and a $4.50 price objective on the stock. Four equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $7.57.

Sweetgreen Stock Up 16.4%

The stock has a market capitalization of $860.69 million, a PE ratio of 59.88 and a beta of 2.17. The firm has a 50 day moving average price of $8.39 and a 200 day moving average price of $6.97.

Sweetgreen (NYSE:SG - Get Free Report) last posted its earnings results on Friday, May 8th. The company reported ($0.27) earnings per share for the quarter, missing analysts' consensus estimates of ($0.23) by ($0.04). Sweetgreen had a net margin of 2.49% and a negative return on equity of 33.07%. The company had revenue of $161.52 million during the quarter, compared to the consensus estimate of $163.94 million. During the same quarter in the prior year, the business earned ($0.21) EPS. The firm's revenue for the quarter was down 2.9% compared to the same quarter last year. On average, equities analysts forecast that Sweetgreen, Inc. will post -0.76 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Sweetgreen

A number of hedge funds have recently bought and sold shares of the company. Royal Bank of Canada grew its stake in shares of Sweetgreen by 22.4% in the 1st quarter. Royal Bank of Canada now owns 291,477 shares of the company's stock worth $7,292,000 after acquiring an additional 53,427 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Sweetgreen by 6.2% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 60,572 shares of the company's stock valued at $1,516,000 after purchasing an additional 3,553 shares in the last quarter. Prudential Financial Inc. bought a new stake in Sweetgreen in the 2nd quarter worth about $197,000. Qube Research & Technologies Ltd bought a new stake in Sweetgreen in the 2nd quarter worth about $538,000. Finally, Frontier Capital Management Co. LLC increased its stake in Sweetgreen by 121.7% in the 2nd quarter. Frontier Capital Management Co. LLC now owns 680,255 shares of the company's stock valued at $10,122,000 after buying an additional 373,350 shares during the last quarter. 95.75% of the stock is owned by hedge funds and other institutional investors.

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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