Taking on analysts’ expectations and winning: Sprouts Farmers Market Inc. (SFM)

Sprouts Farmers Market Inc. (NASDAQ: SFM) stock fell -0.30% on Thursday to $36.09 against a previous-day closing price of $36.20. With 1.49 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.72 million shares. During the session, the Grocery Stores company that operates in wider Consumer Defensive sector, reached to the highest price of $36.10 whereas the lowest price it dropped to was $35.54. The 52-week range on SFM shows that it touched its highest point at $39.99 and its lowest point at $24.34 during that stretch. It currently has a 1-year price target of $35.08. Beta for the stock currently stands at 0.40.

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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 SFM was down-trending over the past week, with a drop of -0.28%, but this was up by 5.87% over a month. Three-month performance surged to 17.86% while six-month performance rose 9.30%. The stock gained 46.17% in the past year, while it has gained 11.49% so far this year. A look at the trailing 12-month EPS for SFM yields 2.32 with Next year EPS estimates of 2.77. For the next quarter, that number is 0.64. This implies an EPS growth rate of 13.80% for this year and 3.60% for next year. EPS is expected to grow by 7.43% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 18.70%.

Float and Shares Shorts:

At present, 103.83 million SFM shares are outstanding with a float of 102.57 million shares on hand for trading. On Apr 27, 2023, short shares totaled 18.08 million, which was 17.55% higher than short shares on Mar 30, 2023. In addition to Mr. Jack L. Sinclair as the firm’s CEO & Director, Mr. Nicholas Konat serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 110.98% of SFM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 64.20% of SFM, in contrast to 45.55% held by mutual funds. Shares owned by individuals account for 17.25%. As the largest shareholder in SFM with 11.53% of the stake, Fidelity Management & Research Co holds 11,881,520 shares worth 11,881,520. A second-largest stockholder of SFM, BlackRock Fund Advisors, holds 11,125,861 shares, controlling over 10.80% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SFM, holding 10,969,355 shares or 10.64% stake. With a 3.75% stake in SFM, the Fidelity Low Priced Stock Fund is the largest stakeholder. A total of 3,860,511 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 3.21% of SFM stock, is the second-largest Mutual Fund holder. It holds 3,303,136 shares valued at 114.49 million. Vanguard Total Stock Market ETF holds 3.19% of the stake in SFM, owning 3,282,376 shares worth 113.77 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Apr 01, 2023, SFM reported revenue of $1.60B and operating income of $87.00M. The EBITDA in the recently reported quarter was $148.26M and diluted EPS was $0.57.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SFM since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With SFM analysts setting a high price target of $45.00 and a low target of $26.00, the average target price over the next 12 months is $35.15. Based on these targets, SFM could surge 24.69% to reach the target high and fall by -27.96% to reach the target low. Reaching the average price target will result in a decline of -2.6% 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.

Summary of Insider Activity:

Insiders traded SFM stock several times over the past three months with 29 Buys and 30 Sells. In these transactions, 445,598 shares were bought while 218,386 shares were sold. The number of buy transactions has increased to 42 while that of sell transactions has risen to 42 over the past year. The total number of shares bought during that period was 534,789 while 437,080 shares were sold.

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