The Goldman Sachs Group Issues Pessimistic Forecast for Sprouts Farmers Market (NASDAQ:SFM) Stock Price

Key Points

• The Goldman Sachs Group has revised its price target for Sprouts Farmers Market stock from $209.00 to $178.00, while maintaining a "buy" rating; this suggests a potential upside of 61.76% from the current price.
• Several analysts assigned varying price targets, with Royal Bank of Canada setting a target at $148.00 and Jefferies Financial Group at $190.00, indicating a mixed outlook among investment analysts.
• Sprouts Farmers Market recently reported earnings that exceeded expectations, with a revenue of $2.22 billion and earnings per share of $1.35 for the quarter, reflecting a 17.3% year-over-year growth.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) had its price objective lowered by The Goldman Sachs Group from $209.00 to $178.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. The Goldman Sachs Group's price target would suggest a potential upside of 61.76% from the stock's current price.

A number of other equities analysts also recently weighed in on SFM. Royal Bank Of Canada set a $148.00 target price on shares of Sprouts Farmers Market and gave the stock an "outperform" rating in a report on Monday, October 13th. Wells Fargo & Company upgraded shares of Sprouts Farmers Market from an "equal weight" rating to an "overweight" rating and raised their target price for the stock from $175.00 to $180.00 in a research note on Tuesday, August 5th. Weiss Ratings restated a "buy (b-)" rating on shares of Sprouts Farmers Market in a research note on Tuesday, October 14th. Jefferies Financial Group upgraded shares of Sprouts Farmers Market from a "hold" rating to a "buy" rating and set a $190.00 target price for the company in a research note on Friday, August 1st. Finally, Wall Street Zen cut shares of Sprouts Farmers Market from a "buy" rating to a "hold" rating in a research note on Saturday. Ten investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $174.36.

Sprouts Farmers Market Stock Performance

Shares of SFM opened at $110.04 on Wednesday. Sprouts Farmers Market has a twelve month low of $98.75 and a twelve month high of $182.00. The firm's 50 day moving average price is $125.87 and its two-hundred day moving average price is $149.49. The firm has a market cap of $10.75 billion, a P/E ratio of 22.64, a PEG ratio of 1.25 and a beta of 0.77.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $1.35 earnings per share for the quarter, topping analysts' consensus estimates of $1.23 by $0.12. The business had revenue of $2.22 billion for the quarter, compared to the consensus estimate of $2.16 billion. Sprouts Farmers Market had a net margin of 5.77% and a return on equity of 36.53%. The firm's revenue for the quarter was up 17.3% on a year-over-year basis. During the same period in the previous year, the company earned $0.94 earnings per share. Sprouts Farmers Market has set its FY 2025 guidance at 5.200-5.320 EPS. Q3 2025 guidance at 1.120-1.160 EPS. On average, sell-side analysts anticipate that Sprouts Farmers Market will post 4.29 earnings per share for the current fiscal year.

Sprouts Farmers Market declared that its board has approved a stock buyback plan on Tuesday, August 19th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In related news, CEO Jack Sinclair sold 4,045 shares of the company's stock in a transaction dated Monday, October 6th. The shares were sold at an average price of $103.00, for a total value of $416,635.00. Following the transaction, the chief executive officer directly owned 174,740 shares in the company, valued at approximately $17,998,220. This represents a 2.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Dustin Hamilton sold 7,200 shares of the company's stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $138.95, for a total transaction of $1,000,440.00. Following the completion of the transaction, the insider owned 16,349 shares in the company, valued at $2,271,693.55. This trade represents a 30.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 38,429 shares of company stock valued at $5,351,362 in the last three months. Insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Sprouts Farmers Market

Several institutional investors and hedge funds have recently modified their holdings of the business. Global Retirement Partners LLC grew its stake in shares of Sprouts Farmers Market by 15.9% in the third quarter. Global Retirement Partners LLC now owns 963 shares of the company's stock valued at $105,000 after acquiring an additional 132 shares in the last quarter. Financiere des Professionnels Fonds d investissement inc. grew its stake in shares of Sprouts Farmers Market by 200.2% in the third quarter. Financiere des Professionnels Fonds d investissement inc. now owns 2,825 shares of the company's stock valued at $307,000 after acquiring an additional 1,884 shares in the last quarter. Unique Wealth LLC acquired a new position in shares of Sprouts Farmers Market in the third quarter valued at about $224,000. Suncoast Equity Management bought a new stake in Sprouts Farmers Market during the third quarter worth about $824,000. Finally, Silver Oak Securities Incorporated lifted its position in Sprouts Farmers Market by 155.7% during the third quarter. Silver Oak Securities Incorporated now owns 11,291 shares of the company's stock worth $1,228,000 after purchasing an additional 6,875 shares during the period.

About Sprouts Farmers Market

Sprouts Farmers Market, Inc, together with its subsidiaries, engages in the retailing of fresh, natural, and organic food products under the Sprouts brand in the United States. It offers perishable product categories, including fresh produce, meat and meat alternatives, seafood, deli, bakery, floral, and dairy and dairy alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.

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