Sweetgreen (NYSE:SG) Stock Jumps 7.7% – Here’s What Happened

Sweetgreen, Inc. (NYSE:SG) shares shot up 7.7% on Wednesday. The company traded as high as $10.83 and last traded at $11.1030. Approximately 411,415 shares changed hands during mid-day trading, a decline of 92% from the average session volume of 5,049,663 shares. The stock had previously closed at $10.31.

Wall Street Analysts Forecast Growth

SG has been the subject of a number of research analyst reports. UBS Group upped their price objective on shares of Sweetgreen from $6.50 to $11.00 and gave the stock a “neutral” rating in a research report on Wednesday. Royal Bank Of Canada increased their price objective on shares of Sweetgreen from $6.50 to $11.00 and gave the company an “outperform” rating in a research note on Tuesday, September 29th. Weiss Ratings lowered shares of Sweetgreen from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, August 11th. Oppenheimer lowered their price target on shares of Sweetgreen from $10.00 to $8.50 and set an “outperform” rating for the company in a report on Friday, August 7th. Finally, Morgan Stanley increased their price target on Sweetgreen from $7.00 to $8.00 and gave the company an “equal weight” rating in a research note on Thursday, October 15th. Six 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 company. According to MarketBeat.com, Sweetgreen presently has a consensus rating of “Hold” and an average target price of $8.63.

Sweetgreen Price Performance

The company has a fifty day moving average price of $8.37 and a two-hundred day moving average price of $7.19. The company has a market capitalization of $1.36 billion, a P/E ratio of 114.02 and a beta of 2.16.

Sweetgreen (NYSE:SG) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.09). Sweetgreen had a net margin of 2.01% and a negative return on equity of 32.94%. The business had revenue of $192.66 million during the quarter, compared to the consensus estimate of $194.50 million. During the same quarter last year, the business earned ($0.20) EPS. The firm’s quarterly revenue was up 3.8% compared to the same quarter last year. As a group, sell-side analysts forecast that Sweetgreen, Inc. will post -1.04 earnings per share for the current year.

Insider Buying and Selling at Sweetgreen

In related news, COO Jason Miles Cochran sold 4,809 shares of the stock in a transaction 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 in the company, valued at $1,285,941.96. This represents a 2.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at 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 firm’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $6.21, for a total value of $93,354.93. Following the transaction, the chief financial officer directly owned 210,489 shares of the company’s stock, valued at approximately $1,307,136.69. This represents a 6.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 18.19% of the stock is currently owned by company insiders.

Institutional Trading of Sweetgreen

Several institutional investors have recently added to or reduced their stakes in the stock. Sterling Capital Management LLC lifted its position in shares of Sweetgreen by 175.2% in the 3rd quarter. Sterling Capital Management LLC now owns 2,936 shares of the company’s stock worth $26,000 after purchasing an additional 1,869 shares during the period. Fifth Third Bancorp acquired a new stake in shares of Sweetgreen during the first quarter worth $38,000. State of Alaska Department of Revenue acquired a new stake in shares of Sweetgreen during the third quarter worth $68,000. Sequoia Financial Advisors LLC acquired a new stake in shares of Sweetgreen during the second quarter worth $90,000. Finally, Versant Capital Management Inc raised its stake in Sweetgreen by 241.5% during the second quarter. Versant Capital Management Inc now owns 10,518 shares of the company’s stock worth $93,000 after buying an additional 7,438 shares during the last quarter. 95.75% of the stock is currently owned by institutional investors.

About Sweetgreen

Sweetgreen, Inc operates a fast-casual restaurant company focused on fresh, customizable meals. Its menu includes salads, grain bowls, protein plates, sides, and beverages made with seasonal produce and other ingredients. Customers can order in restaurants or through Sweetgreen’s website and mobile application, with options for pickup and delivery.

Founded in 2007 by Nicolas Jammet, Jonathan Neman, and Nathaniel Ru, Sweetgreen began as a single restaurant in Washington, DC The company has expanded its restaurant network across metropolitan areas in the United States, with locations concentrated in major markets on the East and West coasts and in other regions.