Sweetgreen (NYSE: SG) has received an increase in its target price from JPMorgan Chase & Co., which raised its estimate from $6.00 to $8.00 according to a research report published recently. The firm maintains a neutral rating on the stock, reflecting a cautious outlook amid mixed analyst opinions.
Several other financial institutions have also weighed in on Sweetgreen’s stock. The Royal Bank Of Canada reaffirmed an “outperform” rating with a price target of $8.00 in a report dated December 9. Meanwhile, Barclays raised its target from $5.00 to $7.00 and assigned an “equal weight” rating in a note released on January 7. In contrast, Bank of America adjusted its target price down to $9.50 from $18.00, maintaining a neutral rating. Additionally, Wells Fargo & Company reduced its target price from $10.00 to $7.00 and changed its rating from “overweight” to “equal weight.”
Analyst consensus appears to lean towards a cautious stance, with three analysts issuing a Buy rating, eleven giving a Hold rating, and two recommending a Sell rating. According to data from MarketBeat, Sweetgreen currently holds a consensus rating of “Hold” with an average target price of $10.79.
Recent Financial Performance
Sweetgreen’s financial performance has shown some challenges. The company reported its quarterly earnings on November 7, 2023, revealing a loss of $0.31 earnings per share (EPS), which fell short of analysts’ expectations of $0.18 by $0.13. Revenue for the quarter totaled $172.39 million, below the estimated $179.29 million. Year-over-year comparisons indicate a 0.6% decline in revenue, as the company reported $0.18 EPS during the same period last year. Analysts project that Sweetgreen will post an EPS of -$0.74 for the current fiscal year.
Insider Transactions and Investor Sentiment
In other news, insider trading activity has raised interest. Nicolas Jammet, co-founder of Sweetgreen, acquired 18,115 shares of the company’s stock on November 12, 2023, at an average price of $5.51 per share, totaling approximately $99,813.65. Following this transaction, Jammet now holds 18,115 shares in the company.
Additionally, CEO Jonathan Neman purchased 179,800 shares on the same day at an average price of $5.56, amounting to nearly $999,688.00. This purchase significantly increased Neman’s ownership stake in Sweetgreen.
Hedge funds have also shown interest in Sweetgreen. The Teacher Retirement System of Texas increased its holdings by 5.8% in the second quarter, accumulating 15,981 shares, valued at around $238,000. Other institutions such as Nisa Investment Advisors and the Police & Firemen’s Retirement System of New Jersey have also adjusted their investments, indicating a growing interest among institutional investors. Hedge funds and institutional investors collectively own 95.75% of Sweetgreen’s stock.
Founded in 2007 by Jonathan Neman, Nicolas Jammet, and Nathaniel Ru, Sweetgreen is a fast-casual restaurant chain specializing in salads and grain bowls, emphasizing fresh, locally sourced ingredients. The company operates a technology-driven service model, integrating in-store experiences with digital ordering capabilities through its mobile app and website.
As Sweetgreen navigates through these financial and market challenges, investor sentiment and analyst ratings will continue to play crucial roles in shaping its future trajectory.
