Sweetgreen (NYSE:SG) Shares Gap Up – Should You Buy?

Sweetgreen, Inc. (NYSE:SG) shares gapped up prior to trading on Monday. The stock had previously closed at $8.24, but opened at $8.57. Sweetgreen shares last traded at $8.6710, with a volume of 834,881 shares changing hands.

Analysts Set New Price Targets

A number of equities analysts recently commented on SG shares. Citigroup lowered their target price on shares of Sweetgreen from $10.00 to $8.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Oppenheimer cut their price target on Sweetgreen from $10.00 to $8.50 and set an “outperform” rating on the stock in a research note on Friday, August 7th. Royal Bank Of Canada decreased their price target on Sweetgreen from $7.00 to $6.50 and set an “outperform” rating for the company in a report on Friday, August 7th. KeyCorp raised Sweetgreen from a “sector weight” rating to an “overweight” rating and set a $9.00 price objective for the company in a research report on Tuesday, September 8th. Finally, TD Cowen increased their price objective on Sweetgreen from $5.00 to $6.00 and gave the company a “hold” rating in a report on Friday, September 11th. Six analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Sweetgreen has a consensus rating of “Hold” and an average price target of $7.56.

Sweetgreen Stock Up 2.2%

The firm has a fifty day simple moving average of $6.61 and a 200-day simple moving average of $7.05. The company has a market cap of $1.00 billion, a PE ratio of 84.16 and a beta of 2.20.

Sweetgreen (NYSE:SG) last posted its earnings results on Thursday, August 6th. The company reported ($0.22) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.09). Sweetgreen had a net margin of 2.01% and a negative return on equity of 32.94%. The firm had revenue of $192.66 million during the quarter, compared to analysts’ expectations of $194.50 million. During the same period in the previous year, the firm posted ($0.20) earnings per share. The firm’s revenue for the quarter was up 3.8% on a year-over-year basis. Equities research analysts forecast that Sweetgreen, Inc. will post -1.03 earnings per share for the current fiscal year.

Insider Activity at Sweetgreen

In other news, COO Jason Miles Cochran sold 4,809 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $6.21, for a total value of $29,863.89. Following the completion of the sale, the chief operating officer directly owned 207,076 shares of the company’s stock, valued at approximately $1,285,941.96. This represents a 2.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $6.21, for a total value of $93,354.93. Following the completion of the sale, the chief financial officer directly owned 210,489 shares of the company’s stock, valued at $1,307,136.69. The trade was a 6.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 18.19% of the company’s stock.

Hedge Funds Weigh In On Sweetgreen

A number of institutional investors have recently modified their holdings of SG. Sequoia Financial Advisors LLC purchased a new position in Sweetgreen during the 2nd quarter worth $90,000. Integrated Wealth Concepts LLC acquired a new position in Sweetgreen in the second quarter valued at $112,000. Proficio Capital Partners LLC purchased a new stake in shares of Sweetgreen in the second quarter valued at about $99,000. Wellington Management Group LLP purchased a new stake in shares of Sweetgreen in the second quarter valued at about $4,557,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Sweetgreen during the second quarter worth about $2,792,000. 95.75% of the stock is owned by institutional investors and hedge funds.

Sweetgreen Company Profile

Sweetgreen, Inc operates a fast-casual restaurant chain focused on fresh, plant-forward meals. Its menu includes salads, grain bowls, warm bowls, sides, beverages and seasonal offerings prepared with a focus on whole ingredients and customizable combinations.

The company serves customers through company-operated restaurants and digital channels, including its website and mobile application for ordering, pickup and delivery. Sweetgreen has also developed automated restaurant technology, including its Infinite Kitchen platform, which is designed to support food preparation and restaurant operations.

Sweetgreen was founded in 2007 in Washington, DC, by Jonathan Neman, Nicolas Jammet and Nathaniel Ru.