Sprouts Farmers Market Inc (NASDAQ:SFM) finished Wednesday with an addition of $0.97 to close at $42.46, an upside of 2.34 percent. An average of 1,582,880 shares of common stock have been traded in the last five days. There was a gain of $1.66 in the past week, and it reached a new high 20 times over the past 12 months. The last 20 days have seen an average of 1,426,890 shares traded, while the 50-day average volume stands at 1,466,554.
SFM stock has increased by 6.38% in the last month. The company shares reached their 1-month lowest point of $38.46 on 09/07/23. With the stock rallying to its 52-week high on 09/27/23, shares of the company touched a low of $26.34 and a high of $42.31 in 52 weeks. It has reached a new high 15 times so far this year and achieved 31.17% or $10.09 in price. In spite of this, the price is up 0.35% 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 7 days ago on Sep 21. In this transaction, the insider spent $2,870,960. VP, Controller, Hilgendorf Stacy W., disposed of 6,626 shares at a price of $39.99 on Sep 12. The insider now owns more than $264,974 worth of shares. Prior to that, SVP, Chief Forager Coffin Kim went on to Sale 7,286 shares at $40.58 each on Aug 30. An amount of $295,659 was transacted.
Valuation Metrics
Sprouts Farmers Market Inc (SFM) has a trailing price-to-earnings (P/E) ratio of 17.64. The stock’s beta is 0.39. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.66, the price-to-book (PB) ratio at 4.04, and the price-to-cash flow ratio at 10.22.
Financial Health
The quick ratio of Sprouts Farmers Market Inc for the recent quarter was 0.58, and the current ratio was 1.18, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.39 and a total debt to equity ratio of 1.50 for the recent quarter. Sprouts Farmers Market Inc’s EBITDA margin is 9.58%, while its operating margin for the same period stands at 5.95%. Its gross profit as reported stood at $2.35 billion compared to revenue of $6.4 billion.
Earnings Surprise
In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $67.33 million in the quarter, while revenues of $76.16 million were grew 7.92%. Shareholders own equity worth $102.01 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Sprouts Farmers Market Inc (SFM) price momentum. RSI 9-day as of the close on 27 September was 71.84%, suggesting the stock is Overbought, with historical volatility in this time frame at 17.16%.
As of today, SFM’s price is $41.72 +4.07% or $1.66 from its 5-day moving average. SFM is currently trading +4.79% higher than its 20-day SMA and +16.91% higher than its 100-day SMA. However, the stock’s current price level is +10.23% above the SMA50 and +22.58% above the SMA200.
The stochastic %K and %D were 90.93% and 89.74%, respectively, and the average true range (ATR) was 1.01. With the 14-day stochastic at 97.47% and the average true range at 0.99, the RSI (14) stands at 67.99%. The stock has reached 0.76 on the 9-day MACD Oscillator while the 14-day reading was at 1.24.
Analyst Ratings
Deutsche Bank downgraded Sprouts Farmers Market Inc (NASDAQ: SFM) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Sprouts Farmers Market Inc (SFM) among analysts is Underweight. According to current brokerage recommendations, 4 brokerage firms advise that investors sell SFM, while 9 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 0 others rate it as a “buy”.
What is SFM’s price target for the next 12 months?
Analysts predict a range of price targets between $26.00 and $43.00, with a median target of $37.00. Taking a look at these predictions, the average price target given by analysts for Sprouts Farmers Market Inc (SFM) stock is $35.73.
