Sweetgreen (NYSE:SG) Stock Price Down 6.6% - Should You Sell?

Key Points

• Shares fell 6.6% to $5.37 on Friday, trading as low as $5.30 on volume of ~670,798 shares—about 85% below the average daily volume.
• The analyst consensus is "Hold" with an average price target of $8.22; ratings are mixed (3 Buy, 12 Hold, 2 Sell) and several firms have recently adjusted targets (e.g., UBS cut to $6.50, RBC to $7.00, Goldman to $5.60).
• Sweetgreen missed the quarter—EPS of ($0.42) vs. ($0.31) expected and revenue down 3.5% year-over-year—leaving the company unprofitable and analysts forecasting about ($0.74) EPS for the current year.

Shares of Sweetgreen, Inc. (NYSE:SG - Get Free Report) dropped 6.6% on Friday . The stock traded as low as $5.30 and last traded at $5.37. Approximately 670,798 shares changed hands during mid-day trading, a decline of 85% from the average daily volume of 4,376,337 shares. The stock had previously closed at $5.75.

Analysts Set New Price Targets

Several research analysts have recently issued reports on SG shares. Citigroup restated a "buy" rating on shares of Sweetgreen in a report on Wednesday, November 12th. William Blair reissued a "market perform" rating on shares of Sweetgreen in a research report on Friday, November 7th. UBS Group cut their price target on shares of Sweetgreen from $7.50 to $6.50 and set a "neutral" rating on the stock in a report on Monday, February 23rd. The Goldman Sachs Group upped their price objective on shares of Sweetgreen from $5.00 to $5.60 and gave the company a "sell" rating in a research note on Wednesday, January 28th. Finally, Royal Bank Of Canada dropped their target price on shares of Sweetgreen from $8.00 to $7.00 and set an "outperform" rating for the company in a report on Friday, February 27th. Three research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $8.22.

Sweetgreen Trading Down 3.0%

The business's 50 day moving average price is $6.42 and its two-hundred day moving average price is $7.13. The stock has a market cap of $660.50 million, a P/E ratio of -4.89 and a beta of 1.93.

Sweetgreen (NYSE:SG - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported ($0.42) earnings per share for the quarter, missing the consensus estimate of ($0.31) by ($0.11). Sweetgreen had a negative net margin of 19.73% and a negative return on equity of 32.26%. The firm had revenue of $155.19 million for the quarter, compared to the consensus estimate of $159.59 million. During the same period in the previous year, the firm posted ($0.25) earnings per share. The business's revenue was down 3.5% compared to the same quarter last year. As a group, analysts expect that Sweetgreen, Inc. will post -0.74 earnings per share for the current year.

Institutional Trading of Sweetgreen

Hedge funds and other institutional investors have recently modified their holdings of the business. Nisa Investment Advisors LLC lifted its position in Sweetgreen by 98.2% during the 2nd quarter. Nisa Investment Advisors LLC now owns 2,129 shares of the company's stock valued at $32,000 after acquiring an additional 1,055 shares during the period. Skandinaviska Enskilda Banken AB publ lifted its holdings in shares of Sweetgreen by 312.3% during the second quarter. Skandinaviska Enskilda Banken AB publ now owns 2,808 shares of the company's stock valued at $42,000 after purchasing an additional 2,127 shares during the last quarter. Larson Financial Group LLC lifted its holdings in shares of Sweetgreen by 165.8% during the third 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 last quarter. Bogart Wealth LLC boosted its position in shares of Sweetgreen by 1,150.0% in the 3rd quarter. Bogart Wealth LLC now owns 5,000 shares of the company's stock worth $40,000 after purchasing an additional 4,600 shares in the last quarter. Finally, CWM LLC grew its stake in shares of Sweetgreen by 212.2% in the 4th quarter. CWM LLC now owns 7,333 shares of the company's stock worth $50,000 after buying an additional 4,984 shares during the last quarter. 95.75% of the stock is owned by hedge funds and other institutional investors.

About Sweetgreen

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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