Sweetgreen Sees Unusually High Options Volume (NYSE:SG)

Key Points

• Sweetgreen saw unusually heavy options activity, with traders buying 66,898 call options on Friday, about 910% above its normal daily volume.
• The stock jumped 16.5% to $8.03 amid above-average trading volume, but it remains well below its 1-year high of $16.70.
• Recent earnings were weak: Sweetgreen missed both EPS and revenue estimates, and analysts currently rate the stock a consensus Hold with a $7.60 price target.

Sweetgreen, Inc. (NYSE:SG - Get Free Report) was the target of unusually large options trading on Friday. Stock traders bought 66,898 call options on the company. This represents an increase of 910% compared to the typical daily volume of 6,626 call options.

Sweetgreen Stock Up 16.5%

Shares of NYSE:SG traded up $1.14 during midday trading on Friday, reaching $8.03. The company had a trading volume of 7,320,807 shares, compared to its average volume of 4,319,462. The business's 50 day moving average price is $6.02 and its 200 day moving average price is $6.32. The stock has a market cap of $953.61 million, a PE ratio of 66.80 and a beta of 2.03. Sweetgreen has a 1-year low of $4.49 and a 1-year high of $16.70.

Sweetgreen (NYSE:SG - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported ($0.27) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.23) by ($0.04). The company had revenue of $161.52 million during the quarter, compared to analyst estimates of $163.95 million. Sweetgreen had a net margin of 2.49% and a negative return on equity of 33.07%. Sweetgreen's revenue was down 2.9% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.21) EPS. On average, research analysts expect that Sweetgreen will post -0.76 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts recently commented on the company. DA Davidson raised their price objective on Sweetgreen from $5.50 to $7.00 and gave the stock a "neutral" rating in a research note on Monday. JPMorgan Chase & Co. raised their price objective on Sweetgreen from $6.00 to $8.00 and gave the stock a "neutral" rating in a research note on Tuesday, January 20th. Oppenheimer dropped their price objective on Sweetgreen from $10.00 to $9.00 and set an "outperform" rating on the stock in a research note on Friday, February 27th. Weiss Ratings raised Sweetgreen from a "sell (e+)" rating to a "sell (d)" rating in a research note on Monday. Finally, BNP Paribas Exane raised their price objective on Sweetgreen from $4.50 to $5.00 and gave the stock an "underperform" rating in a research note on Friday, May 8th. Three investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $7.60.

Insider Buying and Selling

In other news, major shareholder Goldman Sachs Group Inc acquired 594,553 shares of the firm's stock in a transaction on Tuesday, April 7th. The shares were purchased at an average cost of $5.69 per share, for a total transaction of $3,383,006.57. Following the transaction, the insider owned 11,900,255 shares of the company's stock, valued at approximately $67,712,450.95. This 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 available at this link. Also, insider Nicolas Jammet acquired 4,428 shares of the firm's stock in a transaction on Thursday, March 5th. The stock was purchased at an average price of $5.71 per share, for a total transaction of $25,283.88. Following the completion of the transaction, the insider directly owned 22,543 shares in the company, valued at approximately $128,720.53. The trade was a 24.44% increase in their position. The disclosure for this purchase is available in the SEC filing. 19.78% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sweetgreen

Hedge funds and other institutional investors have recently bought and sold shares of the business. Larson Financial Group LLC grew its holdings in Sweetgreen by 165.8% during the third 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 during the period. Bogart Wealth LLC boosted its stake in shares of Sweetgreen by 1,150.0% in the third quarter. Bogart Wealth LLC now owns 5,000 shares of the company's stock valued at $40,000 after buying an additional 4,600 shares during the period. Skandinaviska Enskilda Banken AB publ boosted its stake in shares of Sweetgreen by 124.1% in the third quarter. Skandinaviska Enskilda Banken AB publ now owns 6,292 shares of the company's stock valued at $50,000 after buying an additional 3,484 shares during the period. Fifth Third Bancorp bought a new stake in shares of Sweetgreen in the first quarter valued at approximately $38,000. Finally, CWM LLC lifted its stake in Sweetgreen by 212.2% during the fourth 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 last quarter. Institutional investors own 95.75% of the company's stock.

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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