Insider trading activity at Sweetgreen has recently attracted attention due to the sale of shares by key executives.

Insider Trading Activity

Nicolas Jammet, an insider, sold 16,751 shares on November 6th at an average price of $40.04, resulting in a total transaction value of $670,710.04. Following this sale, Jammet retains ownership of 1,930,233 shares, which are currently valued at approximately $77.29 million. This transaction reflects a 0.00% decrease in his position, indicating a strategic move rather than a significant divestment.

In addition to Jammet's sale, CEO Jonathan Neman also engaged in insider trading, selling 169,772 shares on August 26th for an average price of $35.77, totaling around $6.07 million. Post-transaction, Neman holds 1,930,228 shares valued at about $69.04 million, similarly reflecting a 0.00% change in his ownership stake.

Over the past 90 days, corporate insiders have sold a total of 466,022 shares valued at approximately $16.67 million, while insiders collectively own 21.52% of the company's stock.

Institutional Investment

Sweetgreen has seen a significant increase in institutional investment, with several firms adjusting their positions.

• Driehaus Capital Management LLC has increased its stake by 231.8% during the second quarter, now holding 2,688,403 shares worth around $81 million after acquiring an additional 1,878,216 shares.
• Hood River Capital Management LLC and Allspring Global Investments Holdings LLC have also made substantial investments, with the latter purchasing a new stake valued at approximately $33.45 million.

Baillie Gifford & Co. increased its holdings by 6.2% in the second quarter, now owning over 12.3 million shares worth about $371.52 million. Currently, institutional investors and hedge funds control 95.75% of Sweetgreen's stock, indicating strong confidence in the company's future prospects.

Stock Performance

Sweetgreen's stock has experienced fluctuations, recently trading down 4.8% to $40.18, with a trading volume significantly above its average. The stock has a 52-week range, with a low of $8.64 and a high of $42.77, reflecting its volatility in the market. The company boasts a market capitalization of $4.59 billion and a PE ratio of -49.00, indicating challenges in profitability.

Analyst Ratings

Analysts have varied opinions on Sweetgreen's stock.

• UBS Group recently raised its price target from $37.00 to $45.00, suggesting a potential upside of 12% from the current price.
• Piper Sandler and TD Cowen have issued ratings ranging from "neutral" to "buy," with price targets reflecting a consensus average of $39.80.

Despite the mixed ratings, Sweetgreen maintains a "Moderate Buy" rating among analysts, highlighting a cautious optimism about its future performance.

Financial Results

Sweetgreen's financial results have shown a mix of growth and challenges.

In its latest quarterly earnings report, the company posted a loss of $0.13 per share, missing analysts' expectations of a $0.11 loss. However, revenue for the quarter reached $184.6 million, surpassing the consensus estimate of $180.79 million and marking a 21% increase compared to the same period last year.

Despite the revenue growth, the company reported a negative net margin of 14.33% and a negative return on equity of 19.34%, indicating ongoing financial hurdles.

Future Outlook

Looking ahead, analysts predict that Sweetgreen will post an earnings per share of -0.75 for the current fiscal year. The company's ability to navigate its financial challenges while capitalizing on revenue growth will be crucial for its long-term success.

As Sweetgreen continues to expand its footprint in the fast-casual dining sector, investor sentiment and insider trading activity will be key indicators to watch in the coming months.