Sweetgreen (NYSE:SG) Trading Down 7.2% - Here's Why

Key Points

• Sweetgreen shares fell 7.2% on Tuesday, trading as low as $7.82 after closing at $8.27 the previous day, on volume well below its average.
• Analyst sentiment remains mixed: recent moves included target price cuts and upgrades, but MarketBeat shows a consensus rating of “Hold” with a $7.57 price target.
• Recent earnings were weaker than expected, with Sweetgreen reporting a $0.27 loss per share versus the $0.23 estimate and revenue of $161.52 million, also below forecasts.

Sweetgreen, Inc. (NYSE:SG - Get Free Report) was down 7.2% on Tuesday . The stock traded as low as $7.82 and last traded at $7.6710. 972,759 shares were traded during mid-day trading, a decline of 79% from the average daily volume of 4,731,131 shares. The stock had previously closed at $8.27.

Wall Street Analyst Weigh In

A number of brokerages have commented on SG. BNP Paribas Exane boosted their price objective on Sweetgreen from $4.50 to $5.00 and gave the stock an "underperform" rating in a report on Friday, May 8th. Oppenheimer raised their target price on Sweetgreen from $9.00 to $10.00 and gave the company an "outperform" rating in a report on Wednesday, May 20th. Weiss Ratings raised Sweetgreen from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, May 22nd. Piper Sandler lowered their price target on Sweetgreen from $9.00 to $7.00 and set a "neutral" rating for the company in a research report on Friday, March 27th. Finally, JPMorgan Chase & Co. upgraded Sweetgreen from a "neutral" rating to an "overweight" rating and raised their price objective for the company from $8.00 to $13.00 in a research note on Friday, May 22nd. Four 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. According to MarketBeat, Sweetgreen has a consensus rating of "Hold" and a consensus price target of $7.57.

Sweetgreen Trading Down 7.2%

The firm has a market capitalization of $912.02 million, a P/E ratio of 64.12 and a beta of 2.17. The stock's 50-day simple moving average is $8.40 and its 200-day simple moving average is $6.97.

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

Institutional Investors Weigh In On Sweetgreen

Large investors have recently made changes to their positions in the business. Larson Financial Group LLC boosted 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 buying an additional 2,349 shares during the last quarter. Certuity LLC increased its holdings in Sweetgreen by 0.8% during the fourth quarter. Certuity LLC now owns 302,500 shares of the company's stock worth $2,045,000 after buying an additional 2,500 shares during the last quarter. Kingswood Wealth Advisors LLC raised its position in Sweetgreen by 18.7% in the fourth quarter. Kingswood Wealth Advisors LLC now owns 17,202 shares of the company's stock worth $116,000 after acquiring an additional 2,715 shares during the period. Tower Research Capital LLC TRC boosted its stake in Sweetgreen by 26.3% in the second quarter. Tower Research Capital LLC TRC now owns 14,362 shares of the company's stock valued at $214,000 after acquiring an additional 2,987 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Sweetgreen by 6.2% in 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 acquiring an additional 3,553 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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