Is Sprouts Farmers Market Inc. (SFM) Stock Cheap Or Risky?

As of Friday close, Sprouts Farmers Market Inc.’s (NASDAQ:SFM) stock was down -$0.55, moving down -1.78 percent to $30.28. The average number of shares traded per day over the past five days has been 2,792,840 shares. 2 times new highs have been achieved over the past 5 days, with a $2.64 gain in that time frame. In the last twenty days, the average volume was 1,736,025, while in the previous 50 days, it was 1,648,764.

Since last month, SFM stock rose 11.78%. Shares of the company fell to $25.36 on 07/06/22, the lowest level in the past month. A 52-week high of $35.34 was reached on 04/11/22 after having rallying from a 52-week low of $21.18. Since the beginning of this year, SFM’s stock price has risen by 2.02% or $0.60, and marked a new high 9 times. However, the stock has declined by -14.32% since its 52-week high.

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Sprouts Farmers Market Inc. (SFM) last reported insider trading activity 40 days ago on Jun 27. Sinclair Jack, the Chief Executive Officer of the company, disposed of 26,536 shares for $25.65 on Jun 27. It resulted in a $680,648 divestment by the insider. Molloy Lawrence sold 1,298 shares at an average price of $25.11 on Jun 10. The insider now owns 238,624 shares following the transaction. On May 13, Senior Marketing Advisor Phipps Gilliam sold 2,364 shares at $24.96 apiece. The transaction was valued at $59,005.

Valuation Metrics

Right now, Sprouts Farmers Market Inc. (SFM) has a P/E ratio of about 13.85. The stock’s beta is 0.42. Besides these, the trailing price-to-sales (P/S) ratio of 0.53, the price-to-book (PB) ratio of 3.32, and the price-to-cash flow ratio of 10.97 may also be considered.

Financial Health

In the three months ended June 29, Sprouts Farmers Market Inc.’s quick ratio stood at 0.70, while its current ratio was 1.20, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.26, and the total debt-to-equity ratio was 0.26. On the profitability front, the trailing twelve-month gross margin is 36.20% percent. In the year ended June 29, operating margins totaled 5.50%. Based on annual data, SFM earned $2.21 billion in gross profit and brought in $6.1 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 21.00%. Return on equity (ROE) for the past 12 months was 25.70%.

According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. SFM’s revenue rose 4.61% to $1.64 billion during the quarter, while net income inched up to $1.6 billion. While analysts expected Sprouts Farmers Market Inc. to report $0.51 quarterly earnings, the actual figure was $0.57 per share, beating the consensus estimate by 11.80%. During the quarter, the company generated $147.96 million in EBITDA. The liabilities of Sprouts Farmers Market Inc. were 1.97 billion at the end of its most recent quarter ended June 29, and its total debt was $1.52 billion. The value of shareholders’ equity is $107.45 million.

Technical Picture

This quick technical analysis looks at Sprouts Farmers Market Inc.’s (SFM) price momentum. With a historical volatility rate of 66.23%, the RSI 9-day stood at 73.71% on 05 August.

With respect to its five-day moving average, the current Sprouts Farmers Market Inc. price is up by +9.55% percent or $2.64. At present, SFM shares trade +12.44% above its 20-day simple moving average and -2.76% percent below its 100-day simple moving average. However, the stock is currently trading approximately +22.64% above its SMA50 and +36.15% above its SMA200.

Stochastic coefficient K was 74.36% and Stochastic coefficient D was 68.51%, while ATR was 1.13. Given the Stochastic reading of 77.13% for the 14-day period, the RSI (14) reading has been calculated as 69.62%. As of today, the MACD Oscillator reading stands at 1.40, while the 14-day reading stands at 1.67.

Analyst Ratings

Sprouts Farmers Market Inc. downgraded its rating on Sprouts Farmers Market Inc. (NASDAQ: SFM) to an Underperform in a note to investors on May 05, 2022. The analysts firm previously had a Buy rating on the stock.Sprouts Farmers Market Inc. (SFM) has been rated Hold by analysts. According to 3 brokerage firms, SFM is a sell, and 9 firms recommend it is a Hold. There are 3 analysts who say the stock is underweight. A total of 0 analysts rate Sprouts Farmers Market Inc. stock as buy, with 4 recommending it as overweight.

With a median target price of $27.50, the current consensus forecast for the stock is $21.00 – $38.00. Based on these forecasts, analysts predict Sprouts Farmers Market Inc. (SFM) will achieve an average price target of $29.14.


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