Sweetgreen (NYSE:SG) Stock Price Down 6.1% - What's Next?

Key Points

• Sweetgreen's stock price fell by 6.1% during mid-day trading, closing at $9.02, following a significant drop in trading volume by 72% compared to its average.
• Recent analyst ratings indicate a consensus of "Hold" on Sweetgreen, with several firms reducing their price targets substantially, with Barclays and TD Cowen both setting targets at $10.00.
• The company reported earnings of ($0.20) per share, missing estimates and showcasing a negative return on equity of 22.21% despite a slight revenue increase to $185.58 million compared to last year.

Sweetgreen, Inc. (NYSE:SG - Get Free Report)'s stock price traded down 6.1% during mid-day trading on Thursday . The company traded as low as $9.10 and last traded at $9.02. 1,327,973 shares changed hands during trading, a decline of 72% from the average session volume of 4,810,025 shares. The stock had previously closed at $9.61.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. TD Cowen reduced their price objective on Sweetgreen from $15.00 to $10.00 and set a "hold" rating on the stock in a research report on Friday, August 8th. Barclays reduced their price objective on Sweetgreen from $17.00 to $10.00 and set an "equal weight" rating on the stock in a research report on Friday, August 8th. Bank of America reduced their price objective on Sweetgreen from $27.00 to $22.00 and set a "buy" rating on the stock in a research report on Friday, July 18th. Wells Fargo & Company reiterated an "overweight" rating and set a $19.00 price objective on shares of Sweetgreen in a research report on Tuesday, July 1st. Finally, Piper Sandler reduced their price objective on Sweetgreen from $20.00 to $12.00 and set a "neutral" rating on the stock in a research report on Friday, August 8th. Eight equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $17.69.

Sweetgreen Price Performance

The business has a fifty day moving average of $13.18 and a 200-day moving average of $18.85. The stock has a market cap of $1.08 billion, a PE ratio of -10.97 and a beta of 2.04.

Sweetgreen (NYSE:SG - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported ($0.20) earnings per share for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.08). Sweetgreen had a negative return on equity of 22.21% and a negative net margin of 14.29%. The business had revenue of $185.58 million during the quarter, compared to analysts' expectations of $193.47 million. During the same period last year, the business earned ($0.13) earnings per share. The company's revenue for the quarter was up .5% compared to the same quarter last year. As a group, equities research analysts predict that Sweetgreen, Inc. will post -0.74 EPS for the current year.

Insider Activity

In other news, Director Clifford Burrows bought 19,200 shares of the firm's stock in a transaction that occurred on Friday, May 23rd. The shares were purchased at an average price of $13.11 per share, for a total transaction of $251,712.00. Following the completion of the transaction, the director owned 19,200 shares in the company, valued at $251,712. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Mitch Reback sold 10,088 shares of Sweetgreen 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 sale, the chief financial officer directly owned 334,421 shares in the company, valued at $5,093,231.83. This trade represents a 2.93% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 19.78% of the company's stock.

Institutional Investors Weigh In On Sweetgreen

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Baillie Gifford & Co. increased its stake in Sweetgreen by 3.4% during the 1st quarter. Baillie Gifford & Co. now owns 11,707,090 shares of the company's stock worth $292,911,000 after buying an additional 386,141 shares during the period. Wellington Management Group LLP grew its holdings in Sweetgreen by 30.0% during the 1st quarter. Wellington Management Group LLP now owns 5,762,598 shares of the company's stock worth $144,180,000 after acquiring an additional 1,330,094 shares in the last quarter. Durable Capital Partners LP grew its holdings in Sweetgreen by 29.5% during the 1st quarter. Durable Capital Partners LP now owns 4,525,109 shares of the company's stock worth $113,218,000 after acquiring an additional 1,030,176 shares in the last quarter. Spyglass Capital Management LLC grew its holdings in Sweetgreen by 15.2% during the 2nd quarter. Spyglass Capital Management LLC now owns 3,899,813 shares of the company's stock worth $58,029,000 after acquiring an additional 513,643 shares in the last quarter. Finally, Stephens Investment Management Group LLC grew its holdings in Sweetgreen by 89.5% during the 2nd quarter. Stephens Investment Management Group LLC now owns 2,567,526 shares of the company's stock worth $38,205,000 after acquiring an additional 1,212,708 shares in the last quarter. Hedge funds and other institutional investors own 95.75% of the company's stock.

About Sweetgreen

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.

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