Sweetgreen (NYSE:SG) Trading Down 7.8% – Should You Sell?

Sweetgreen, Inc. (NYSE:SG) shares dropped 7.8% on Monday . The stock traded as low as $6.71 and last traded at $6.5440. Approximately 717,607 shares changed hands during trading, a decline of 83% from the average daily volume of 4,166,019 shares. The stock had previously closed at $7.10.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on SG. DA Davidson initiated coverage on shares of Sweetgreen in a research report on Friday, March 6th. They issued a “neutral” rating and a $5.50 price objective for the company. Piper Sandler decreased their target price on shares of Sweetgreen from $9.00 to $7.00 and set a “neutral” rating on the stock in a report on Friday, March 27th. Sanford C. Bernstein set a $7.00 price target on shares of Sweetgreen in a report on Wednesday, January 7th. Morgan Stanley reduced their price target on shares of Sweetgreen from $10.00 to $9.00 and set an “equal weight” rating for the company in a research report on Tuesday, January 20th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sweetgreen in a report on Friday, March 27th. Three analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Sweetgreen currently has a consensus rating of “Hold” and an average price target of $7.84.

Sweetgreen Stock Performance

The stock has a market cap of $798.90 million, a P/E ratio of -5.90 and a beta of 2.03. The stock has a 50-day moving average price of $5.83 and a 200-day moving average price of $6.37.

Sweetgreen (NYSE:SG) last posted its quarterly earnings data on Thursday, February 26th. The company reported ($0.42) earnings per share for the quarter, missing the consensus estimate of ($0.31) by ($0.11). The company had revenue of $155.19 million during the quarter, compared to the consensus estimate of $159.59 million. Sweetgreen had a negative return on equity of 32.26% and a negative net margin of 19.73%.The firm’s revenue for the quarter was down 3.5% on a year-over-year basis. During the same quarter last year, the company posted ($0.25) earnings per share. Sell-side analysts forecast that Sweetgreen, Inc. will post -0.75 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Nicolas Jammet purchased 4,428 shares of the firm’s stock in a transaction dated Thursday, March 5th. The shares were purchased at an average price of $5.71 per share, with a total value of $25,283.88. Following the acquisition, the insider directly owned 22,543 shares of the company’s stock, valued at approximately $128,720.53. This represents a 24.44% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Goldman Sachs Group Inc acquired 594,553 shares of the stock in a transaction dated Tuesday, April 7th. The shares were bought at an average price of $5.69 per share, for a total transaction of $3,383,006.57. Following the transaction, the insider owned 11,900,255 shares in the company, valued at approximately $67,712,450.95. This represents a 5.26% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 19.78% of the stock is owned by insiders.

Institutional Investors Weigh In On Sweetgreen

Several hedge funds have recently added to or reduced their stakes in SG. RPG Investment Advisory LLC increased its position in shares of Sweetgreen by 33.2% during the 3rd quarter. RPG Investment Advisory LLC now owns 616,191 shares of the company’s stock valued at $4,916,000 after purchasing an additional 153,525 shares during the last quarter. Citigroup Inc. boosted its stake in Sweetgreen by 75.8% in the third quarter. Citigroup Inc. now owns 531,171 shares of the company’s stock worth $4,239,000 after buying an additional 228,961 shares in the last quarter. Greenhouse Funds LLLP boosted its stake in Sweetgreen by 82.8% in the third quarter. Greenhouse Funds LLLP now owns 3,946,884 shares of the company’s stock worth $31,496,000 after buying an additional 1,788,175 shares in the last quarter. Federated Hermes Inc. bought a new position in Sweetgreen during the third quarter valued at approximately $4,527,000. Finally, Divisadero Street Capital Management LP bought a new position in Sweetgreen during the third quarter valued at approximately $2,037,000. Institutional investors own 95.75% of the company’s stock.

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.