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

Sweetgreen, Inc. (NYSE:SG) gapped down before the market opened 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 trading hands.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the stock. UBS Group boosted their price objective on shares of Sweetgreen from $6.50 to $7.00 and gave the company a “neutral” rating in a research note on Friday, May 8th. Oppenheimer boosted their price objective on shares of Sweetgreen from $9.00 to $10.00 and gave the company an “outperform” rating in a research note on Wednesday, May 20th. Wolfe Research assumed coverage on shares of Sweetgreen in a research note on Monday, March 9th. They set a “peer perform” rating for the company. Wall Street Zen raised shares of Sweetgreen from a “strong sell” rating to a “sell” rating in a research note on Saturday, May 23rd. Finally, Citizens Jmp assumed coverage on shares of Sweetgreen in a research note on Monday, March 30th. They set a “mkt underperform” rating and a $4.50 price objective for the company. Four investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $8.04.

Sweetgreen Price Performance

The stock has a market capitalization of $1.07 billion, a price-to-earnings ratio of 75.38 and a beta of 2.16. The business’s 50-day simple moving average is $7.60 and its two-hundred day simple moving average is $6.75.

Sweetgreen (NYSE:SG) last announced its quarterly earnings results on Friday, May 8th. The company reported ($0.27) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.23) by ($0.04). The business had revenue of $161.52 million for 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%. The company’s quarterly revenue was down 2.9% on a year-over-year basis. During the same period last year, the firm earned ($0.21) earnings per share. As a group, sell-side analysts expect that Sweetgreen, Inc. will post -0.76 EPS for the current year.

Insiders Place Their Bets

In related 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 shares were acquired at an average cost of $5.69 per share, for a total transaction of $3,383,006.57. Following the acquisition, the insider owned 11,900,255 shares in the company, valued at $67,712,450.95. This represents a 5.26% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. 18.19% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sweetgreen

Several hedge funds have recently modified their holdings of SG. Larson Financial Group LLC raised its holdings in shares of Sweetgreen by 165.8% during the 3rd quarter. Larson Financial Group LLC now owns 3,766 shares of the company’s stock valued at $30,000 after buying an additional 2,349 shares during the period. Fifth Third Bancorp purchased a new stake in shares of Sweetgreen during the 1st quarter valued at about $38,000. Skandinaviska Enskilda Banken AB publ raised its holdings in shares of Sweetgreen by 124.1% during the 3rd 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. CWM LLC raised its holdings in shares of Sweetgreen by 212.2% during the 4th quarter. CWM LLC now owns 7,333 shares of the company’s stock valued at $50,000 after buying an additional 4,984 shares during the period. Finally, Caitong International Asset Management Co. Ltd raised its holdings in shares of Sweetgreen by 281.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 7,912 shares of the company’s stock valued at $53,000 after buying an additional 5,839 shares during the period. 95.75% of the stock is currently owned by hedge funds and other institutional investors.

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.