Sweetgreen (NYSE:SG) Trading Down 7.9% – Here’s Why

Sweetgreen, Inc. (NYSE:SG)’s stock price dropped 7.9% during mid-day trading on Monday . The company traded as low as $6.58 and last traded at $6.5190. Approximately 1,307,409 shares changed hands during trading, a decline of 73% from the average daily volume of 4,839,057 shares. The stock had previously closed at $7.08.

Wall Street Analyst Weigh In

Several brokerages have weighed in on SG. Wall Street Zen raised Sweetgreen from a “strong sell” rating to a “sell” rating in a report on Saturday, May 23rd. TD Cowen upped their target price on Sweetgreen from $7.00 to $8.00 and gave the company a “hold” rating in a research report on Wednesday, May 27th. Citigroup increased their target price on Sweetgreen from $9.00 to $10.00 and gave the stock a “buy” rating in a report on Monday. DA Davidson raised their price target on Sweetgreen from $5.50 to $7.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. Finally, Oppenheimer boosted their price target on Sweetgreen from $9.00 to $10.00 and gave the company an “outperform” rating in a research note on Wednesday, May 20th. Four investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $7.72.

Sweetgreen Stock Up 2.9%

The business’s 50 day moving average is $8.40 and its 200-day moving average is $6.97. The firm has a market capitalization of $813.39 million, a P/E ratio of 57.05 and a beta of 2.17.

Sweetgreen (NYSE:SG) last released its earnings results on Friday, May 8th. The company reported ($0.27) earnings per share for the quarter, missing the consensus estimate of ($0.23) by ($0.04). The business had revenue of $161.52 million for the quarter, compared to the consensus estimate of $163.94 million. Sweetgreen had a negative return on equity of 33.07% and a net margin of 2.49%.The firm’s revenue for the quarter was down 2.9% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.21) earnings per share. Research analysts forecast that Sweetgreen, Inc. will post -0.51 EPS for the current fiscal year.

Hedge Funds Weigh In On Sweetgreen

Institutional investors have recently modified their holdings of the business. Woodson Capital Management LP boosted its stake in Sweetgreen by 152.6% in the fourth quarter. Woodson Capital Management LP now owns 6,000,000 shares of the company’s stock valued at $40,560,000 after buying an additional 3,625,000 shares in the last quarter. Marshall Wace LLP raised its stake in Sweetgreen by 1,428.8% during the third quarter. Marshall Wace LLP now owns 3,923,973 shares of the company’s stock worth $31,313,000 after acquiring an additional 3,667,306 shares in the last quarter. Federated Hermes Inc. raised its stake in Sweetgreen by 366.8% during the fourth quarter. Federated Hermes Inc. now owns 2,647,899 shares of the company’s stock worth $17,900,000 after acquiring an additional 2,080,628 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Sweetgreen by 0.7% in the fourth quarter. Geode Capital Management LLC now owns 2,453,564 shares of the company’s stock worth $16,589,000 after acquiring an additional 16,281 shares during the last quarter. Finally, BNP Paribas Financial Markets lifted its holdings in shares of Sweetgreen by 35.6% in the fourth quarter. BNP Paribas Financial Markets now owns 2,295,867 shares of the company’s stock worth $15,520,000 after acquiring an additional 603,029 shares during the last quarter. Institutional investors and hedge funds own 95.75% of the company’s stock.

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.