As of Wednesday close, Sprouts Farmers Market Inc.’s (NASDAQ:SFM) stock was down -$0.73, moving down -1.92 percent to $37.26. The average number of shares traded per day over the past five days has been 1,167,320 shares. 3 times new highs have been achieved over the past 5 days, with a -$0.23 fall in that time frame. In the last twenty days, the average volume was 1,624,115, while in the previous 50 days, it was 1,555,930.
Since last month, SFM stock retreated -3.27%. Shares of the company fell to $36.21 on 08/02/23, the lowest level in the past month. A 52-week high of $40.39 was reached on 07/21/23 after having rallying from a 52-week low of $26.34. Since the beginning of this year, SFM’s stock price has risen by 15.11% or $4.89, and marked a new high 9 times. However, the stock has declined by -7.75% since its 52-week high.
SFM stock investors should be aware that Sprouts Farmers Market Inc. (SFM) stock had its last reported insider trading activity 2 days ago on Aug 15. Neal John Scott, the Chief Merchandising Officer of the company, disposed of 58,427 shares for $38.03 on Aug 15. It resulted in a $2,222,160 divestment by the insider. Neal John Scott sold 3,636 shares at an average price of $38.10 on Aug 11. The insider now owns 48,445 shares following the transaction. On Aug 10, Chief Human Resources Officer Zalatoris Timmi sold 12,872 shares at $37.76 apiece. The transaction was valued at $486,007.
Valuation Metrics
Right now, Sprouts Farmers Market Inc. (SFM) has a P/E ratio of about 15.48. The stock’s beta is 0.41. Besides these, the trailing price-to-sales (P/S) ratio of 0.57, the price-to-book (PB) ratio of 3.56, and the price-to-cash flow ratio of 13.02 may also be considered.
Financial Health
In the three months ended June 29, Sprouts Farmers Market Inc.’s quick ratio stood at 0.60, 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 0.17, and the total debt-to-equity ratio was 0.17. On the profitability front, the trailing twelve-month gross margin is 36.90% percent. In the year ended June 29, EBITDA margin amounted to 9.58%, whereas operating margins totaled 5.20%. Based on annual data, SFM earned $2.35 billion in gross profit and brought in $6.4 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 20.70%. Return on equity (ROE) for the past 12 months was 24.10%.
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 5.72% to $1.73 billion during the quarter, while net income inched up to $1.69 billion. While analysts expected Sprouts Farmers Market Inc. to report $0.63 quarterly earnings, the actual figure was $0.71 per share, beating the consensus estimate by 12.70%. During the quarter, the company generated $158.35 million in EBITDA. The liabilities of Sprouts Farmers Market Inc. were 2.13 billion at the end of its most recent quarter ended June 29, and its total debt was $1.61 billion. The value of shareholders’ equity is $102.01 million.
Technical Picture
This quick technical analysis looks at Sprouts Farmers Market Inc.’s (SFM) price momentum. With a historical volatility rate of 20.38%, the RSI 9-day stood at 40.04% on 16 August.
With respect to its five-day moving average, the current Sprouts Farmers Market Inc. price is down by -0.61% percent or -$0.23. At present, SFM shares trade -4.31% below its 20-day simple moving average and +13.70% percent above its 100-day simple moving average. However, the stock is currently trading approximately +14.19% above its SMA50 and +30.51% above its SMA200.
Stochastic coefficient K was 48.64% and Stochastic coefficient D was 55.20%, while ATR was 0.91. Given the Stochastic reading of 31.44% for the 14-day period, the RSI (14) reading has been calculated as 45.11%.
Analyst Ratings
Sprouts Farmers Market Inc. downgraded its rating on Sprouts Farmers Market Inc. (NASDAQ: SFM) to a Hold in a note to investors on July 25, 2023. The analysts firm previously had a Buy rating on the stock.Sprouts Farmers Market Inc. (SFM) has been rated Underweight by analysts. According to 4 brokerage firms, SFM is a sell, and 10 firms recommend it is a Hold. There are 2 analysts who say the stock is underweight. A total of 0 analysts rate Sprouts Farmers Market Inc. stock as buy, with 0 recommending it as overweight.
With a median target price of $36.00, the current consensus forecast for the stock is $26.00 – $43.00. Based on these forecasts, analysts predict Sprouts Farmers Market Inc. (SFM) will achieve an average price target of $35.58.
