Sweetgreen (NYSE:SG) Shares Up 6.9% - Here's What Happened

Key Points

• Sweetgreen shares rose 6.9% on Friday, trading as high as $7.14 after closing at $6.89 the previous day, though volume was well below average.
• Recent analyst updates were mixed, with price targets ranging from $4.50 to $8.00; the stock currently carries a consensus Hold rating and an average target of $7.60.
• The company’s latest quarterly results missed expectations, posting a loss of $0.27 per share on revenue of $161.52 million, while insider and institutional buying remained notable.

Sweetgreen, Inc. (NYSE:SG - Get Free Report) shot up 6.9% on Friday . The company traded as high as $7.14 and last traded at $7.3620. 350,117 shares were traded during mid-day trading, a decline of 92% from the average session volume of 4,247,942 shares. The stock had previously closed at $6.89.

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Analysts Set New Price Targets

A number of brokerages have recently weighed in on SG. Citizens Jmp began coverage on Sweetgreen in a research note on Monday, March 30th. They issued a "mkt underperform" rating and a $4.50 price objective for the company. JPMorgan Chase & Co. lifted their price objective on Sweetgreen from $6.00 to $8.00 and gave the company a "neutral" rating in a research note on Tuesday, January 20th. Royal Bank Of Canada dropped their price objective on Sweetgreen from $8.00 to $7.00 and set an "outperform" rating for the company in a research note on Friday, February 27th. TD Cowen lifted their price objective on Sweetgreen from $5.00 to $7.00 and gave the company a "hold" rating in a research note on Friday, May 8th. Finally, Weiss Ratings raised Sweetgreen from a "sell (e+)" rating to a "sell (d)" rating in a research note on Monday. Three investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $7.60.

Sweetgreen Trading Up 12.7%

The company has a market capitalization of $922.72 million, a PE ratio of 65.02 and a beta of 2.03. The stock has a fifty day simple moving average of $6.02 and a 200-day simple moving average of $6.32.

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

Insider Transactions at Sweetgreen

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

Institutional Trading of Sweetgreen

A number of institutional investors have recently bought and sold shares of the business. Marshall Wace LLP increased its position in shares of Sweetgreen by 1,428.8% during the third quarter. Marshall Wace LLP now owns 3,923,973 shares of the company's stock worth $31,313,000 after purchasing an additional 3,667,306 shares in the last quarter. Woodson Capital Management LP increased its position in shares of Sweetgreen by 152.6% during the fourth quarter. Woodson Capital Management LP now owns 6,000,000 shares of the company's stock worth $40,560,000 after purchasing an additional 3,625,000 shares in the last quarter. Federated Hermes Inc. increased its position in shares of Sweetgreen by 366.8% during the fourth quarter. Federated Hermes Inc. now owns 2,647,899 shares of the company's stock worth $17,900,000 after purchasing an additional 2,080,628 shares in the last quarter. Greenhouse Funds LLLP increased its position in shares of Sweetgreen by 82.8% during the third quarter. Greenhouse Funds LLLP now owns 3,946,884 shares of the company's stock worth $31,496,000 after purchasing an additional 1,788,175 shares in the last quarter. Finally, BNP Paribas Financial Markets increased its position in shares of Sweetgreen by 240.9% during the third quarter. BNP Paribas Financial Markets now owns 1,692,838 shares of the company's stock worth $13,509,000 after purchasing an additional 1,196,222 shares in 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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