Sprouts Farmers Market (NASDAQ:SFM) Rating Lowered to Strong Sell at Zacks Research

Sprouts Farmers Market (NASDAQ:SFM) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Thursday, Zacks reports.

Several other equities analysts have also recently weighed in on the company. Roth Capital set a $56.00 price objective on Sprouts Farmers Market in a report on Thursday. Deutsche Bank Aktiengesellschaft reduced their target price on Sprouts Farmers Market from $84.00 to $77.00 and set a “hold” rating on the stock in a report on Friday, September 25th. Weiss Ratings restated a “hold (c)” rating on shares of Sprouts Farmers Market in a research report on Monday, September 21st. Bank of America cut Sprouts Farmers Market from a “buy” rating to an “underperform” rating and set a $47.00 price target on the stock. in a research report on Thursday. Finally, Wells Fargo & Company dropped their price target on Sprouts Farmers Market from $100.00 to $60.00 and set an “overweight” rating for the company in a research note on Thursday. Five research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Sprouts Farmers Market presently has an average rating of “Hold” and a consensus price target of $64.92.

Sprouts Farmers Market Stock Up 3.5%

NASDAQ SFM opened at $49.70 on Thursday. The company has a current ratio of 0.97, a quick ratio of 0.43 and a debt-to-equity ratio of 0.08. The company has a market cap of $4.58 billion, a price-to-earnings ratio of 9.54, a PEG ratio of 1.35 and a beta of 0.67. The company has a 50 day moving average of $69.68 and a 200-day moving average of $76.29. Sprouts Farmers Market has a 1-year low of $47.35 and a 1-year high of $94.89.

Sprouts Farmers Market (NASDAQ:SFM) last issued its quarterly earnings results on Wednesday, October 28th. The company reported $1.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.22 by ($0.01). The company had revenue of $2.30 billion for the quarter, compared to analyst estimates of $2.33 billion. Sprouts Farmers Market had a return on equity of 33.83% and a net margin of 5.45%. The company’s quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the prior year, the company earned $1.22 EPS. On average, equities research analysts expect that Sprouts Farmers Market will post 4.98 earnings per share for the current fiscal year.

Insider Buying and Selling at Sprouts Farmers Market

In other Sprouts Farmers Market news, CEO Jack Sinclair sold 10,788 shares of Sprouts Farmers Market stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $64.48, for a total value of $695,610.24. Following the transaction, the chief executive officer owned 269,980 shares in the company, valued at $17,408,310.40. The trade was a 3.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joseph D. O’leary sold 2,597 shares of the business’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $82.57, for a total value of $214,434.29. Following the transaction, the director directly owned 14,710 shares of the company’s stock, valued at approximately $1,214,604.70. The trade was a 15.01% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 46,041 shares of company stock valued at $3,460,383. 1.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Sprouts Farmers Market

Hedge funds have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in shares of Sprouts Farmers Market during the 2nd quarter valued at approximately $768,171,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in Sprouts Farmers Market during the 2nd quarter worth approximately $131,310,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Sprouts Farmers Market by 8.2% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,464,015 shares of the company’s stock valued at $123,826,000 after purchasing an additional 111,574 shares during the last quarter. Swedbank AB bought a new position in Sprouts Farmers Market in the 1st quarter valued at approximately $121,906,000. Finally, Bank of America Corp DE bought a new position in Sprouts Farmers Market in the 2nd quarter valued at approximately $93,790,000.

Trending Headlines about Sprouts Farmers Market

Here are the key news stories impacting Sprouts Farmers Market this week:

• Positive Sentiment: Goldman Sachs maintained a Buy rating, while JPMorgan and Wells Fargo retained Overweight ratings. These firms still see potential upside from current levels, although all three sharply reduced their price targets. Goldman Sachs rating
• Neutral Sentiment: Goldman cut its target from $94 to $58, JPMorgan reduced its target from $90 to $58, and Wells Fargo lowered its target from $100 to $60. The continued bullish ratings provide some support, but the magnitude of the reductions signals a reset in expectations. JPMorgan price target
• Negative Sentiment: Sprouts missed third-quarter estimates, reporting adjusted EPS of $1.21 versus consensus of $1.22, while revenue also fell short. Analysts cited soft comparable-store sales and margin pressure. SFM Q3 earnings miss
• Negative Sentiment: Management reduced full-year 2026 EPS guidance to $4.80 from expectations of approximately $5.52 and forecast revenue of $9.2 billion versus consensus near $9.5 billion. Fourth-quarter EPS guidance of $0.47-$0.51 is particularly below the $1.21 analyst estimate.
• Negative Sentiment: Bank of America downgraded SFM to Underperform with a $47 target, while RBC moved the shares to Sector Perform. Commentary characterized the company’s challenges as structural rather than temporary, raising concerns about competitive pressure and the lack of near-term catalysts. Analyst views on Sprouts

Sprouts Farmers Market Company Profile

Sprouts Farmers Market, Inc (NASDAQ:SFM) is a specialty grocery retailer focused on fresh, natural and organic foods. Its stores offer a broad selection of fresh produce, meat and seafood, dairy products, bulk foods, vitamins and supplements, pantry staples, bakery items, deli products and prepared foods. The company emphasizes products that support healthy eating, including organic, plant-based and specialty-diet options.

Founded in 2002, Sprouts Farmers Market grew from its first store in Chandler, Arizona, into a national grocery chain.