Sprouts Farmers Market (NASDAQ:SFM) Reaches New 1-Year High After Better-Than-Expected Earnings

Posted by on May 3rd, 2023

Shares of Sprouts Farmers Market, Inc. (NASDAQ:SFM – Get Rating) hit a new 52-week high on Tuesday following a stronger than expected earnings report. The stock traded as high as $39.99 and last traded at $38.69, with a volume of 1956338 shares trading hands. The stock had previously closed at $35.02.

The company reported $0.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.85 by $0.13. Sprouts Farmers Market had a return on equity of 25.40% and a net margin of 4.08%. The business had revenue of $1.73 billion for the quarter, compared to analysts’ expectations of $1.72 billion. During the same period in the previous year, the business posted $0.79 EPS. The firm’s quarterly revenue was up 5.6% compared to the same quarter last year.

Analyst Ratings Changes

A number of equities analysts have issued reports on SFM shares. JPMorgan Chase & Co. increased their price objective on Sprouts Farmers Market from $33.00 to $35.00 and gave the stock a “neutral” rating in a report on Wednesday, March 8th. StockNews.com started coverage on Sprouts Farmers Market in a report on Thursday, March 16th. They issued a “buy” rating for the company. Evercore ISI increased their price objective on Sprouts Farmers Market from $29.00 to $30.00 in a report on Tuesday. BMO Capital Markets increased their price objective on Sprouts Farmers Market from $21.00 to $26.00 and gave the stock an “underperform” rating in a report on Monday, March 6th. Finally, Wells Fargo & Company raised their price target on Sprouts Farmers Market from $25.00 to $32.00 in a report on Tuesday. Four research analysts have rated the stock with a sell rating, five have assigned a hold rating and two have assigned a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $32.78.

Insider Activity at Sprouts Farmers Market

In other news, insider David Mcglinchey sold 8,321 shares of Sprouts Farmers Market stock in a transaction that occurred on Friday, March 10th. The stock was sold at an average price of $32.85, for a total value of $273,344.85. Following the sale, the insider now directly owns 43,151 shares of the company’s stock, valued at $1,417,510.35. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other Sprouts Farmers Market news, insider David Mcglinchey sold 8,321 shares of Sprouts Farmers Market stock in a transaction on Friday, March 10th. The stock was sold at an average price of $32.85, for a total value of $273,344.85. Following the sale, the insider now owns 43,151 shares in the company, valued at $1,417,510.35. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Jack Sinclair sold 66,709 shares of the business’s stock in a transaction on Friday, March 10th. The shares were sold at an average price of $32.85, for a total value of $2,191,390.65. Following the completion of the sale, the chief executive officer now owns 290,928 shares in the company, valued at approximately $9,556,984.80. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 157,547 shares of company stock worth $5,174,940. 0.71% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. PGGM Investments purchased a new stake in Sprouts Farmers Market during the 3rd quarter valued at approximately $62,932,000. Wasatch Advisors Inc. acquired a new stake in shares of Sprouts Farmers Market in the 1st quarter worth approximately $54,912,000. Morgan Stanley grew its holdings in shares of Sprouts Farmers Market by 111.3% in the 4th quarter. Morgan Stanley now owns 3,093,805 shares of the company’s stock worth $100,146,000 after acquiring an additional 1,629,709 shares during the period. Royal London Asset Management Ltd. acquired a new stake in Sprouts Farmers Market during the 3rd quarter valued at $16,683,000. Finally, Congress Asset Management Co. MA acquired a new stake in Sprouts Farmers Market during the 1st quarter valued at $20,150,000. 99.11% of the stock is owned by institutional investors and hedge funds.

Sprouts Farmers Market Trading Up 8.1 %

The business has a fifty day simple moving average of $33.54 and a 200 day simple moving average of $32.47. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.70 and a current ratio of 1.29. The stock has a market cap of $3.93 billion, a price-to-earnings ratio of 15.84, a PEG ratio of 1.45 and a beta of 0.39.

About Sprouts Farmers Market

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Sprouts Farmers Market, Inc engages in the operation of healthy grocery stores. The firm specializes in fresh, natural and organic products. Its products include fresh produce, bulk foods, vitamins and supplements, grocery, meat and seafood, deli, bakery, dairy, frozen foods, body care and natural household items.

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