Sweetgreen (NYSE:SG) Trading Down 7.8% - Should You Sell?

Key Points

• Shares fell 7.8% intraday to $6.54 (from $7.10) on Monday with ~717,607 shares traded (about 83% below the average); the stock trades near its 200-day SMA ($6.37) and has a market cap of roughly $799 million.
• Sweetgreen missed results last quarter, reporting a $0.42 EPS loss vs. a $0.31 expected loss and revenue of $155.2M vs. $159.6M consensus, leaving a negative net margin of 19.7% and analysts projecting about -$0.75 EPS for the year.
• Insiders bought shares: Goldman Sachs purchased 594,553 shares at $5.69 and co‑founder Nicolas Jammet bought 4,428 shares, raising insider ownership to 19.78%; analysts' consensus rating is "Hold" with a $7.84 target.

Shares of Sweetgreen, Inc. (NYSE:SG - Get Free Report) fell 7.8% during mid-day trading on Monday . The stock traded as low as $6.71 and last traded at $6.5440. 717,607 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 4,166,019 shares. The stock had previously closed at $7.10.

Analyst Ratings Changes

SG has been the subject of a number of research analyst reports. DA Davidson initiated coverage on Sweetgreen in a research report on Friday, March 6th. They set a "neutral" rating and a $5.50 price target for the company. Oppenheimer reduced their price objective on Sweetgreen from $10.00 to $9.00 and set an "outperform" rating for the company in a research note on Friday, February 27th. Barclays raised their target price on Sweetgreen from $5.00 to $7.00 and gave the company an "equal weight" rating in a research report on Wednesday, January 7th. Citizens Jmp initiated coverage on Sweetgreen in a research note on Monday, March 30th. They set a "mkt underperform" rating and a $4.50 target price on the stock. Finally, BNP Paribas Exane raised shares of Sweetgreen to a "strong sell" rating in a report on Monday, March 30th. Three research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $7.84.

Sweetgreen Price Performance

The firm has a fifty day simple moving average of $5.83 and a two-hundred day simple moving average of $6.37. The firm has a market capitalization of $798.90 million, a P/E ratio of -5.90 and a beta of 2.03.

Sweetgreen (NYSE:SG - Get Free Report) last issued its earnings results on Thursday, February 26th. The company reported ($0.42) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.31) by ($0.11). The firm had revenue of $155.19 million during the quarter, compared to the consensus estimate of $159.59 million. Sweetgreen had a negative net margin of 19.73% and a negative return on equity of 32.26%. The business's quarterly revenue was down 3.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.25) earnings per share. On average, research analysts anticipate that Sweetgreen, Inc. will post -0.75 EPS for the current year.

Insider Activity

In other Sweetgreen news, major shareholder Goldman Sachs Group Inc acquired 594,553 shares of the company'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. This trade represents a 5.26% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Nicolas Jammet bought 4,428 shares of the business's stock in a transaction on Thursday, March 5th. The shares were acquired at an average price of $5.71 per share, with a total value of $25,283.88. Following the transaction, the insider directly owned 22,543 shares of the company's stock, valued at approximately $128,720.53. This trade represents a 24.44% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 19.78% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Larson Financial Group LLC boosted its holdings in shares of Sweetgreen by 165.8% in the third quarter. Larson Financial Group LLC now owns 3,766 shares of the company's stock worth $30,000 after acquiring an additional 2,349 shares during the period. Fifth Third Bancorp bought a new stake in shares of Sweetgreen during the 1st quarter valued at $38,000. Bogart Wealth LLC raised its stake in shares of Sweetgreen by 1,150.0% during the 3rd quarter. Bogart Wealth LLC now owns 5,000 shares of the company's stock valued at $40,000 after purchasing an additional 4,600 shares during the period. Skandinaviska Enskilda Banken AB publ lifted its holdings in Sweetgreen by 124.1% during the 3rd quarter. Skandinaviska Enskilda Banken AB publ now owns 6,292 shares of the company's stock worth $50,000 after purchasing an additional 3,484 shares in the last quarter. Finally, CWM LLC boosted its stake in Sweetgreen by 212.2% in the 4th quarter. CWM LLC now owns 7,333 shares of the company's stock worth $50,000 after purchasing an additional 4,984 shares during the period. 95.75% of the stock is currently 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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