Sweetgreen (NYSE:SG) Shares Gap Down After Earnings Miss

Shares of Sweetgreen, Inc. (NYSE:SG) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $6.25, but opened at $5.25. Sweetgreen shares last traded at $5.6890, with a volume of 3,547,202 shares trading hands.

The company reported ($0.31) earnings per share for the quarter, missing the consensus estimate of ($0.18) by ($0.13). Sweetgreen had a negative net margin of 14.29% and a negative return on equity of 22.21%. The company had revenue of $172.39 million during the quarter, compared to analyst estimates of $179.29 million. During the same quarter last year, the business posted ($0.18) EPS. The firm’s revenue for the quarter was down .6% on a year-over-year basis. Sweetgreen has set its FY 2025 guidance at EPS.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Royal Bank Of Canada set a $7.00 target price on Sweetgreen in a research note on Friday. Sanford C. Bernstein set a $8.00 price objective on shares of Sweetgreen in a report on Wednesday, October 22nd. TD Cowen cut their target price on shares of Sweetgreen from $15.00 to $10.00 and set a “hold” rating on the stock in a research note on Friday, August 8th. Barclays reduced their target price on shares of Sweetgreen from $10.00 to $8.00 and set an “equal weight” rating on the stock in a report on Wednesday, October 22nd. Finally, Piper Sandler cut their price objective on Sweetgreen from $12.00 to $9.00 and set a “neutral” rating on the stock in a research report on Friday. Five research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $12.96.

Insider Buying and Selling

In related news, CFO Mitch Reback sold 11,530 shares of the business’s stock in a transaction on Monday, August 18th. The shares were sold at an average price of $9.19, for a total value of $105,960.70. Following the completion of the sale, the chief financial officer directly owned 322,891 shares of the company’s stock, valued at $2,967,368.29. The trade was a 3.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 19.78% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sweetgreen

Several institutional investors have recently added to or reduced their stakes in SG. Baillie Gifford & Co. raised its stake in shares of Sweetgreen by 3.4% during the first quarter. Baillie Gifford & Co. now owns 11,707,090 shares of the company’s stock worth $292,911,000 after purchasing an additional 386,141 shares during the last quarter. Wellington Management Group LLP grew its stake in Sweetgreen by 30.0% in the 1st quarter. Wellington Management Group LLP now owns 5,762,598 shares of the company’s stock valued at $144,180,000 after acquiring an additional 1,330,094 shares during the last quarter. Durable Capital Partners LP grew its holdings in Sweetgreen by 29.5% during the 1st quarter. Durable Capital Partners LP now owns 4,525,109 shares of the company’s stock valued at $113,218,000 after buying an additional 1,030,176 shares during the last quarter. Spyglass Capital Management LLC grew its holdings in shares of Sweetgreen by 15.2% during the second quarter. Spyglass Capital Management LLC now owns 3,899,813 shares of the company’s stock worth $58,029,000 after buying an additional 513,643 shares in the last quarter. Finally, Stephens Investment Management Group LLC increased its stake in Sweetgreen by 89.5% in the second quarter. Stephens Investment Management Group LLC now owns 2,567,526 shares of the company’s stock valued at $38,205,000 after purchasing an additional 1,212,708 shares during the last quarter. Institutional investors and hedge funds own 95.75% of the company’s stock.

Sweetgreen Stock Down 7.9%

The company has a market cap of $680.30 million, a PE ratio of -6.81 and a beta of 1.94. The stock’s 50 day simple moving average is $7.91 and its two-hundred day simple moving average is $11.71.

Sweetgreen Company Profile

Sweetgreen, Inc, together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.