A look into Sweetgreen Inc. (SG)’s deeper side

Sweetgreen Inc. (NYSE: SG) stock jumped 3.46% on Friday to $12.56 against a previous-day closing price of $12.14. With 3.15 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.18 million shares. During the session, the Restaurants company that operates in wider Consumer Cyclical sector, reached to the highest price of $12.60 whereas the lowest price it dropped to was $12.08. The 52-week range on SG shows that it touched its highest point at $20.00 and its lowest point at $6.10 during that stretch. It currently has a 1-year price target of $16.00. Beta for the stock currently stands at 2.00.

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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 -8.52%, but this was down by -11.24% over a month. Three-month performance surged to 20.42% while six-month performance rose 75.17%. The stock lost -33.72% in the past year, while it has gained 46.56% so far this year. A look at the trailing 12-month EPS for SG yields -1.46 with Next year EPS estimates of -0.63. For the next quarter, that number is -0.15. This implies an EPS growth rate of -8.20% for this year and 40.00% for next year. EPS is expected to grow by 27.40% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -41.10%.

Float and Shares Shorts:

At present, 111.58 million SG shares are outstanding with a float of 91.23 million shares on hand for trading. On Aug 30, 2023, short shares totaled 11.95 million, which was 10.67% higher than short shares on Jul 30, 2023. 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:

Other institutions hold 7.81% of SG, in contrast to 46.16% held by mutual funds. Shares owned by individuals account for 40.33%. As the largest shareholder in SG with 14.18% of the stake, Fidelity Management & Research Co holds 13,997,972 shares worth 13,997,972. A second-largest stockholder of SG, Baillie Gifford & Co., holds 12,127,202 shares, controlling over 12.28% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SG, holding 7,657,230 shares or 7.76% stake. With a 7.07% stake in SG, the Fidelity Blue Chip Growth Fund is the largest stakeholder. A total of 6,977,717 shares are owned by the mutual fund manager. The Baillie Gifford Overseas Growth F, which owns about 3.06% of SG stock, is the second-largest Mutual Fund holder. It holds 3,019,000 shares valued at 43.35 million. Janus Henderson Contrarian Fund holds 2.90% of the stake in SG, owning 2,861,430 shares worth 41.09 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 Jun 24, 2023, SG reported revenue of $124.92M and operating income of -$42.04M. The EBITDA in the recently reported quarter was -$28.68M and diluted EPS was -$0.37.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SG 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 SG analysts setting a high price target of $19.00 and a low target of $14.00, the average target price over the next 12 months is $16.00. Based on these targets, SG could surge 51.27% to reach the target high and rise by 11.46% to reach the target low. Reaching the average price target will result in a growth of 27.39% 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 SG stock several times over the past three months with 5 Buys and 6 Sells. In these transactions, 267,218 shares were bought while 282,218 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 37 over the past year. The total number of shares bought during that period was 664,382 while 691,973 shares were sold.

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