The stock of Sprouts Farmers Market Inc. (NASDAQ:SFM) increased by $0.36 on Wednesday to $40.88, up 0.89 percent. The last five days have seen an average of 967,858 shares of common stock traded. 11 times new highs were reached in the current year, with a gain of $8.85. The average number of shares traded over the last 20 days was 1,232,834, while the average volume over the last 50 days totaled 1,416,856.
SFM stock appreciated 6.85% since last month. On 08/02/23, the company’s shares reached a one-month low of $36.21. The stock touched a high of $40.55 on 08/30/23, after rallying from a low of $26.34 in 52 weeks. The price of SFM stock has risen by 26.29% or $8.85 this year, reaching a new high 11 times. Still, the stock price is up 0.81% from the 52-week high.
Insider Transactions
SFM stock investors should be aware that Sprouts Farmers Market Inc. (SFM) stock had its last reported insider trading activity 15 days ago on Aug 15. On Aug 15, Chief Merchandising Officer Neal John Scott sold 58,427 shares at $38.03 each. This transaction resulted in the insider making $2,222,160. On Aug 11, Neal John Scott sold 3,636 shares at a price of US$38.10. After the transaction, the insider now owns 48,445 shares. Chief Human Resources Officer Zalatoris Timmi had earlier sold 12,872 shares on Aug 10 for $37.76 a share. The transaction was completed for $486,007.
Valuation Metrics
Sprouts Farmers Market Inc. (SFM) has a trailing price-to-earnings (P/E) ratio of 16.98. Beta for the stock is 0.40. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.62, the price-to-book (PB) ratio of 3.91, and the price-to-cash flow ratio of 14.31.
Financial Health
For the three months ended June 29, Sprouts Farmers Market Inc.’s quick ratio was 0.60, while its current ratio was 1.20, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.17, and the total debt to equity ratio is 0.17. As far as profitability goes, gross margin for the trailing twelve months is 36.90% percent. Sprouts Farmers Market Inc.’s EBITDA margin for the year ended June 29 was 9.58%, whereas its operating margin stood at 5.20% for the same period. Based on annual data, it had gross profit of $2.35 billion and revenue of $6.4 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. SFM’s return on assets (ROA) during the last 12 months has been 8.20%. There was a 20.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 24.10%.
Earnings Surprise
According to Sprouts Farmers Market Inc.’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.69 billion, while revenues rose by 5.71% to $1.73 billion. It was predicted that Sprouts Farmers Market Inc.’s quarterly earnings would be $0.71, but it ended up being $0.63, beating the consensus by 12.70%. EBITDA was $158.35 million for the quarter. At the end of Sprouts Farmers Market Inc.’s most recent quarter ended June 29, its liabilities totaled 2.13 billion, while its total debt was $1.61 billion. Equity owned by shareholders amounts to $102.01 million.
Technical Picture
Here’s a quick look at Sprouts Farmers Market Inc.’s (SFM) price momentum from a technical perspective. As of 29 August, the RSI 9-day stood at 72.75%, suggesting the stock is Overbought, with a 23.53% historical volatility rate.
The stochastic %K and %D were 96.89% and 92.11% respectively, while the average true range (ATR) was 0.86. Based on the 14-day stochastic reading of 98.79%, the RSI (14) reading is 67.22%. On the 9-day MACD Oscillator, the stock is at 0.93, and the 14-day reading is at 1.53.
Analyst Ratings
Sprouts Farmers Market Inc. (NASDAQ: SFM) was downgraded by Deutsche Bank to a a Hold rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned Sprouts Farmers Market Inc. (SFM) an Underweight rating. SFM is a stock that is recommended for selling by 4 brokerage firms, while 10 companies recommend holding. The stock is underweighted by 2 analysts. Among the analysts who rate the stock, 0 rates it overweight and 0 others recommend it as a buy.
What is SFM’s price target for the next 12 months?
The current consensus forecast for the stock is between $26.00 and $43.00, with a median target price of $36.00. In analyzing these forecasts, the average price target given by analysts for Sprouts Farmers Market Inc. (SFM) is $35.50.
