Sweetgreen (NYSE:SG) Trading 7.2% Higher – Should You Buy?

Sweetgreen, Inc. (NYSE:SG) rose 7.2% during trading on Monday . The company traded as high as $5.78 and last traded at $5.7050. Approximately 1,880,598 shares changed hands during trading, a decline of 57% from the average daily volume of 4,370,969 shares. The stock had previously closed at $5.32.

Analyst Ratings Changes

SG has been the subject of a number of research analyst reports. JPMorgan Chase & Co. raised their price objective on shares of Sweetgreen from $6.00 to $8.00 and gave the stock a “neutral” rating in a report on Tuesday, January 20th. Barclays raised their price target on shares of Sweetgreen from $5.00 to $7.00 and gave the stock an “equal weight” rating in a research note on Wednesday, January 7th. DA Davidson began coverage on shares of Sweetgreen in a report on Friday, March 6th. They issued a “neutral” rating and a $5.50 price target on the stock. Wells Fargo & Company lowered Sweetgreen from an “overweight” rating to an “equal weight” rating and reduced their price objective for the company from $10.00 to $7.00 in a report on Wednesday, December 17th. Finally, Morgan Stanley lowered their target price on Sweetgreen from $10.00 to $9.00 and set an “equal weight” rating on the stock in a research note on Tuesday, January 20th. Three analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $8.22.

Sweetgreen Trading Up 9.3%

The company has a market capitalization of $688.32 million, a P/E ratio of -5.07 and a beta of 1.93. The company’s fifty day moving average is $6.28 and its 200 day moving average is $6.96.

Sweetgreen (NYSE:SG) last posted its earnings results on Thursday, February 26th. The company reported ($0.42) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.31) by ($0.11). Sweetgreen had a negative return on equity of 32.26% and a negative net margin of 19.73%.The company had revenue of $155.19 million for the quarter, compared to analysts’ expectations of $159.59 million. During the same quarter in the prior year, the company earned ($0.25) EPS. The company’s revenue was down 3.5% on a year-over-year basis. Equities research analysts predict that Sweetgreen, Inc. will post -0.74 EPS for the current year.

Insiders Place Their Bets

In other news, insider Nicolas Jammet bought 4,428 shares of the stock in a transaction on Thursday, March 5th. The shares were acquired at an average cost of $5.71 per share, for a total transaction of $25,283.88. Following the purchase, the insider directly owned 22,543 shares of the company’s stock, valued at $128,720.53. This trade represents a 24.44% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 19.78% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd boosted its stake in Sweetgreen by 548.2% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 13,437 shares of the company’s stock valued at $91,000 after buying an additional 11,364 shares during the period. Alpine Global Management LLC purchased a new stake in shares of Sweetgreen in the 4th quarter valued at about $92,000. Aristides Capital LLC bought a new stake in shares of Sweetgreen during the 4th quarter valued at about $185,000. Virtu Financial LLC purchased a new position in shares of Sweetgreen during the fourth quarter worth about $674,000. Finally, Invesco Ltd. increased its position in shares of Sweetgreen by 23.9% in the fourth quarter. Invesco Ltd. now owns 134,511 shares of the company’s stock worth $909,000 after purchasing an additional 25,921 shares during the last quarter. 95.75% of the stock is currently owned by hedge funds and other institutional investors.

Sweetgreen Company Profile

Sweetgreen, Inc is a fast-casual restaurant chain specializing in salads, grain bowls and warm bowls that emphasize fresh, locally sourced ingredients. Since its founding in 2007 by Jonathan Neman, Nicolas Jammet and Nathaniel Ru, Sweetgreen has focused on sustainable agriculture, working with regional farmers across the United States to provide seasonal produce and promote environmentally responsible sourcing practices. The company’s menu features a variety of plant-forward options, including custom-build salads, chef-curated bowls and limited-time offerings that reflect changing harvests.

Sweetgreen operates a technology-driven service model that combines in-store experiences with digital ordering through its mobile app and website.