Top investors say Sweetgreen Inc. (SG) ticks everything they need

Sweetgreen Inc. (NYSE: SG) stock jumped 5.53% on Monday to $9.73 against a previous-day closing price of $9.22. With 1.25 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.65 million shares. During the session, the Restaurants company that operates in wider Consumer Cyclical sector, reached to the highest price of $9.75 whereas the lowest price it dropped to was $9.17. The 52-week range on SG shows that it touched its highest point at $40.10 and its lowest point at $7.81 during that stretch. It currently has a 1-year price target of $16.86.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SG was down-trending over the past week, with a drop of -1.42%, but this was up by 2.64% over a month. Three-month performance dropped to -44.18% while six-month performance fell -37.39%. The stock lost -60.81% in the past year, while it has gained 13.54% so far this year. A look at the trailing 12-month EPS for SG yields -3.63 with Next year EPS estimates of -1.06. For the next quarter, that number is -0.35. This implies an EPS growth rate of -317.70% for this year and 29.30% for next year.

Float and Shares Shorts:

At present, 110.38 million SG shares are outstanding with a float of 94.59 million shares on hand for trading. On Oct 13, 2022, short shares totaled 17.8 million, which was 16.16% higher than short shares on Sep 14, 2022. In addition to Mr. Jonathan Neman as the firm’s Co-Founder, Chairman, Pres & CEO, Mr. Nicolas H. Jammet serves as its Co-Founder, Sec., Chief Concept Officer & Director.

Institutional Ownership:

Through their ownership of 80.93% of SG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.62% of SG, in contrast to 45.48% held by mutual funds. Shares owned by individuals account for 4.38%. As the largest shareholder in SG with 14.17% of the stake, Fidelity Management & Research Co holds 13,789,026 shares worth 13,789,026. A second-largest stockholder of SG, T. Rowe Price Associates, Inc., holds 13,016,307 shares, controlling over 13.37% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SG, holding 6,805,563 shares or 6.99% stake. With a 7.28% stake in SG, the Fidelity Blue Chip Growth Fund is the largest stakeholder. A total of 7,085,594 shares are owned by the mutual fund manager. The T Rowe Price New Horizons Fund, which owns about 6.18% of SG stock, is the second-largest Mutual Fund holder. It holds 6,017,593 shares valued at 51.57 million. Janus Henderson Contrarian Fund holds 2.82% of the stake in SG, owning 2,740,242 shares worth 23.48 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SG since 9 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SG analysts setting a high price target of $21.00 and a low target of $11.00, the average target price over the next 12 months is $16.38. Based on these targets, SG could surge 115.83% to reach the target high and rise by 13.05% to reach the target low. Reaching the average price target will result in a growth of 68.35% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SG will report FY 2022 earnings on 02/29/2024. Analysts have provided yearly estimates in a range of -$1.41 being high and -$1.64 being low. For SG, this leads to a yearly average estimate of -$1.55. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sweetgreen Inc. surprised analysts by -$0.07 when it reported -$0.43 EPS against a consensus estimate of -$0.36. The surprise factor in the prior quarter was -$0.06. Based on analyst estimates, the high estimate for the next quarter is -$0.37 and the low estimate is -$0.42. The average estimate for the next quarter is thus -$0.39.

Summary of Insider Activity:

Insiders traded SG stock several times over the past three months with 0 Buys and 8 Sells. In these transactions, 0 shares were bought while 43,550 shares were sold. The number of buy transactions has increased to 12 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 104,792 while 210,322 shares were sold.

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