Sweetgreen (NYSE:SG) Trading 9.3% Higher - Should You Buy?

Key Points

• Sweetgreen shares rose 9.3% to about $6.36, although trading volume was 86% below the daily average.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and a $7.10 price target, while several firms recently lowered their targets.
• The company’s latest quarter missed expectations, reporting a $0.22 loss per share versus an expected $0.13 loss and revenue of $192.66 million versus $194.50 million expected, despite 3.8% year-over-year revenue growth.

Sweetgreen, Inc. (NYSE:SG - Get Free Report) shot up 9.3% during mid-day trading on Wednesday . The stock traded as high as $6.31 and last traded at $6.3590. Approximately 724,897 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 5,089,451 shares. The stock had previously closed at $5.82.

Analyst Upgrades and Downgrades

SG has been the topic of several research analyst reports. Citigroup reduced their target price on Sweetgreen from $10.00 to $8.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. TD Cowen cut their price target on shares of Sweetgreen from $8.00 to $5.00 and set a "hold" rating on the stock in a report on Friday, August 7th. Wall Street Zen raised shares of Sweetgreen from a "strong sell" rating to a "sell" rating in a research report on Sunday. Wells Fargo & Company decreased their price objective on shares of Sweetgreen from $7.00 to $6.00 and set an "equal weight" rating for the company in a report on Friday, August 7th. Finally, KeyCorp reaffirmed a "sector weight" rating on shares of Sweetgreen in a research report on Monday, August 10th. Four research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $7.10.

Sweetgreen Price Performance

The stock has a 50 day simple moving average of $7.36 and a 200-day simple moving average of $6.79. The firm has a market cap of $777.93 million, a PE ratio of 65.46 and a beta of 2.20.

Sweetgreen (NYSE:SG - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.09). Sweetgreen had a negative return on equity of 32.94% and a net margin of 2.01%.The company had revenue of $192.66 million during the quarter, compared to analysts' expectations of $194.50 million. During the same period in the prior year, the firm earned ($0.20) EPS. Sweetgreen's revenue for the quarter was up 3.8% compared to the same quarter last year. As a group, equities analysts predict that Sweetgreen, Inc. will post -0.98 EPS for the current fiscal year.

Insider Activity

In other Sweetgreen news, COO Jason Miles Cochran sold 4,809 shares of Sweetgreen stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $6.21, for a total value of $29,863.89. Following the completion of the transaction, the chief operating officer directly owned 207,076 shares of the company's stock, valued at approximately $1,285,941.96. The trade was a 2.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jamie Mcconnell sold 15,033 shares of the company's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $6.21, for a total transaction of $93,354.93. Following the completion of the transaction, the chief financial officer owned 210,489 shares in the company, valued at approximately $1,307,136.69. This represents a 6.67% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 18.19% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Sweetgreen

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SG. Larson Financial Group LLC increased its holdings in shares of Sweetgreen by 165.8% in the 3rd quarter. Larson Financial Group LLC now owns 3,766 shares of the company's stock worth $30,000 after purchasing an additional 2,349 shares in the last quarter. Fifth Third Bancorp bought a new position in shares of Sweetgreen during the first quarter valued at $38,000. CWM LLC boosted its position 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. Caitong International Asset Management Co. Ltd boosted its position 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. Finally, Onyx Bridge Wealth Group LLC bought a new stake in Sweetgreen in the 1st quarter worth about $56,000. 95.75% of the stock is owned by 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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