Sweetgreen (NYSE:SG) Shares Gap Down – What’s Next?

Shares of Sweetgreen, Inc. (NYSE:SG) gapped down prior to trading on Wednesday . The stock had previously closed at $9.15, but opened at $8.86. Sweetgreen shares last traded at $8.8210, with a volume of 224,478 shares changing hands.

Analyst Ratings Changes

SG has been the topic of several research reports. UBS Group increased their price target on shares of Sweetgreen from $6.50 to $7.00 and gave the company a “neutral” rating in a research report on Friday, May 8th. JPMorgan Chase & Co. upgraded shares of Sweetgreen from a “neutral” rating to an “overweight” rating and increased their price target for the company from $8.00 to $13.00 in a research report on Friday, May 22nd. Wolfe Research initiated coverage on shares of Sweetgreen in a research report on Monday, March 9th. They issued a “peer perform” rating on the stock. Citizens Jmp initiated coverage on shares of Sweetgreen in a research report on Monday, March 30th. They issued a “mkt underperform” rating and a $4.50 price target on the stock. Finally, DA Davidson increased their price target on shares of Sweetgreen from $5.50 to $7.00 and gave the company a “neutral” rating in a research report on Monday, May 11th. Four analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, Sweetgreen has an average rating of “Hold” and a consensus target price of $8.04.

Sweetgreen Stock Performance

The company has a market capitalization of $1.07 billion, a PE ratio of 75.38 and a beta of 2.16. The stock’s fifty day simple moving average is $7.60 and its 200-day simple moving average is $6.75.

Sweetgreen (NYSE:SG) last released its earnings results on Friday, May 8th. The company reported ($0.27) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.23) by ($0.04). The firm had revenue of $161.52 million during the quarter, compared to analysts’ expectations of $163.95 million. Sweetgreen had a net margin of 2.49% and a negative return on equity of 33.07%. Sweetgreen’s revenue for the quarter was down 2.9% on a year-over-year basis. During the same quarter last year, the company posted ($0.21) earnings per share. On average, equities analysts anticipate that Sweetgreen, Inc. will post -0.76 EPS for the current year.

Insider Transactions at Sweetgreen

In other Sweetgreen news, major shareholder Goldman Sachs Group Inc bought 594,553 shares of the company’s stock in a transaction that occurred on Tuesday, April 7th. The stock was purchased at an average cost of $5.69 per share, for a total transaction of $3,383,006.57. Following the completion of the purchase, the insider owned 11,900,255 shares of the company’s stock, valued at $67,712,450.95. This trade represents a 5.26% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 18.19% of the company’s stock.

Hedge Funds Weigh In On Sweetgreen

Institutional investors have recently added to or reduced their stakes in the business. Larson Financial Group LLC increased its stake in Sweetgreen by 165.8% in the third quarter. Larson Financial Group LLC now owns 3,766 shares of the company’s stock valued at $30,000 after purchasing an additional 2,349 shares during the last quarter. Fifth Third Bancorp acquired a new position in Sweetgreen in the first quarter valued at $38,000. Skandinaviska Enskilda Banken AB publ increased its stake in 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 purchasing an additional 3,484 shares during the last quarter. CWM LLC increased its stake in Sweetgreen by 212.2% in the fourth quarter. CWM LLC now owns 7,333 shares of the company’s stock valued at $50,000 after purchasing an additional 4,984 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its stake in Sweetgreen by 281.7% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 7,912 shares of the company’s stock valued at $53,000 after purchasing an additional 5,839 shares during the last quarter. 95.75% of the stock is currently owned by institutional investors and hedge funds.

Sweetgreen Company Profile

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.