Sprouts Farmers Market (NASDAQ:SFM) Shares Gap Up on Strong Earnings

Sprouts Farmers Market, Inc. (NASDAQ:SFM)’s share price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $118.84, but opened at $135.10. Sprouts Farmers Market shares last traded at $130.18, with a volume of 655,924 shares traded.

The company reported $0.91 EPS for the quarter, topping the consensus estimate of $0.77 by $0.14. Sprouts Farmers Market had a return on equity of 27.53% and a net margin of 4.52%. The company had revenue of $1.95 billion during the quarter, compared to the consensus estimate of $1.88 billion. During the same period in the previous year, the company posted $0.65 EPS. The firm’s revenue for the quarter was up 13.6% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several research firms recently issued reports on SFM. Wells Fargo & Company upgraded Sprouts Farmers Market from an “underweight” rating to an “equal weight” rating and boosted their price target for the company from $62.00 to $90.00 in a research note on Tuesday, July 30th. The Goldman Sachs Group raised their price target on shares of Sprouts Farmers Market from $111.00 to $127.00 and gave the stock a “buy” rating in a report on Tuesday, October 22nd. Royal Bank of Canada initiated coverage on shares of Sprouts Farmers Market in a report on Thursday, September 12th. They set a “sector perform” rating and a $107.00 price objective on the stock. Evercore ISI lifted their target price on Sprouts Farmers Market from $125.00 to $130.00 and gave the company an “outperform” rating in a research report on Tuesday, October 22nd. Finally, Roth Mkm raised their price target on shares of Sprouts Farmers Market from $58.00 to $78.00 and gave the company a “neutral” rating in a research report on Tuesday, July 30th. Nine research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $108.20.

Insiders Place Their Bets

In other Sprouts Farmers Market news, insider Dustin Hamilton sold 500 shares of the firm’s stock in a transaction that occurred on Wednesday, August 21st. The shares were sold at an average price of $97.52, for a total transaction of $48,760.00. Following the completion of the transaction, the insider now directly owns 27,188 shares of the company’s stock, valued at approximately $2,651,373.76. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. In related news, CEO Jack Sinclair sold 5,714 shares of the stock in a transaction that occurred on Monday, October 7th. The shares were sold at an average price of $112.41, for a total transaction of $642,310.74. Following the completion of the transaction, the chief executive officer now owns 211,004 shares of the company’s stock, valued at approximately $23,718,959.64. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Dustin Hamilton sold 500 shares of the stock in a transaction on Wednesday, August 21st. The shares were sold at an average price of $97.52, for a total transaction of $48,760.00. Following the completion of the transaction, the insider now directly owns 27,188 shares in the company, valued at $2,651,373.76. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 65,438 shares of company stock valued at $6,528,580. 1.10% of the stock is owned by company insiders.

Institutional Trading of Sprouts Farmers Market

A number of hedge funds and other institutional investors have recently made changes to their positions in SFM. Crewe Advisors LLC lifted its position in Sprouts Farmers Market by 223.5% during the 2nd quarter. Crewe Advisors LLC now owns 317 shares of the company’s stock worth $27,000 after acquiring an additional 219 shares during the period. Whittier Trust Co. of Nevada Inc. acquired a new stake in shares of Sprouts Farmers Market during the second quarter worth $29,000. V Square Quantitative Management LLC purchased a new position in Sprouts Farmers Market in the 3rd quarter valued at $38,000. Quarry LP increased its stake in Sprouts Farmers Market by 1,425.8% in the 2nd quarter. Quarry LP now owns 473 shares of the company’s stock valued at $40,000 after buying an additional 442 shares during the period. Finally, Waldron Private Wealth LLC purchased a new position in Sprouts Farmers Market during the 3rd quarter worth $60,000.

Sprouts Farmers Market Price Performance

The company has a market cap of $13.05 billion, a price-to-earnings ratio of 40.81, a PEG ratio of 2.75 and a beta of 0.56. The company’s 50 day moving average price is $108.49 and its 200 day moving average price is $90.41. The company has a current ratio of 1.03, a quick ratio of 0.44 and a debt-to-equity ratio of 0.01.

Sprouts Farmers Market Company Profile

Sprouts Farmers Market, Inc, together with its subsidiaries, engages in the retailing of fresh, natural, and organic food products under the Sprouts brand in the United States. It offers perishable product categories, including fresh produce, meat and meat alternatives, seafood, deli, bakery, floral, and dairy and dairy alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.