Divisadero Street Capital Management LP Acquires New Stake in Sweetgreen, Inc. (NYSE:SG)

Divisadero Street Capital Management LP bought a new position in Sweetgreen, Inc. (NYSE:SG) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 10,000 shares of the company’s stock, valued at approximately $301,000.

Several other institutional investors and hedge funds have also made changes to their positions in SG. Hood River Capital Management LLC purchased a new stake in shares of Sweetgreen in the first quarter valued at approximately $29,105,000. Allspring Global Investments Holdings LLC purchased a new stake in shares of Sweetgreen in the 2nd quarter worth $33,449,000. Renaissance Technologies LLC bought a new position in shares of Sweetgreen during the 2nd quarter worth $29,109,000. Teca Partners LP purchased a new position in shares of Sweetgreen during the fourth quarter valued at $8,475,000. Finally, Verition Fund Management LLC bought a new stake in shares of Sweetgreen in the fourth quarter valued at about $8,452,000. 95.75% of the stock is currently owned by institutional investors.

Sweetgreen Stock Performance

Shares of SG stock opened at $35.97 on Friday. Sweetgreen, Inc. has a fifty-two week low of $8.64 and a fifty-two week high of $38.53. The firm has a market capitalization of $4.11 billion, a PE ratio of -38.68 and a beta of 2.32. The stock’s 50-day simple moving average is $30.00 and its 200-day simple moving average is $27.61.

Sweetgreen (NYSE:SG) last posted its quarterly earnings results on Thursday, August 8th. The company reported ($0.13) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.02). The business had revenue of $184.60 million for the quarter, compared to analysts’ expectations of $180.79 million. Sweetgreen had a negative return on equity of 19.34% and a negative net margin of 14.33%. The business’s quarterly revenue was up 21.0% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.20) earnings per share. Sell-side analysts forecast that Sweetgreen, Inc. will post -0.75 earnings per share for the current year.

Analysts Set New Price Targets

Several research analysts have issued reports on the stock. Piper Sandler reiterated a “neutral” rating and set a $39.00 target price (up from $33.00) on shares of Sweetgreen in a report on Monday, August 19th. Bank of America increased their price objective on shares of Sweetgreen from $39.00 to $43.00 and gave the company a “buy” rating in a research note on Monday, August 19th. Oppenheimer upped their target price on Sweetgreen from $36.00 to $40.00 and gave the stock an “outperform” rating in a report on Thursday, August 15th. UBS Group lifted their price target on Sweetgreen from $31.00 to $37.00 and gave the company a “buy” rating in a report on Friday, August 9th. Finally, The Goldman Sachs Group initiated coverage on Sweetgreen in a research note on Thursday, June 13th. They set a “buy” rating and a $39.00 price objective for the company. Three equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $38.20.

Insider Transactions at Sweetgreen

In related news, CTO Wouleta Ayele sold 2,831 shares of the stock in a transaction on Friday, August 16th. The shares were sold at an average price of $36.31, for a total transaction of $102,793.61. Following the sale, the chief technology officer now directly owns 144,649 shares of the company’s stock, valued at $5,252,205.19. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In other news, CEO Jonathan Neman sold 17,020 shares of the company’s stock in a transaction that occurred on Friday, September 13th. The stock was sold at an average price of $35.08, for a total transaction of $597,061.60. Following the completion of the transaction, the chief executive officer now directly owns 1,930,228 shares of the company’s stock, valued at approximately $67,712,398.24. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CTO Wouleta Ayele sold 2,831 shares of the stock in a transaction that occurred on Friday, August 16th. The shares were sold at an average price of $36.31, for a total value of $102,793.61. Following the transaction, the chief technology officer now owns 144,649 shares in the company, valued at approximately $5,252,205.19. The disclosure for this sale can be found here. Insiders have sold 426,061 shares of company stock valued at $15,071,720 in the last 90 days. 21.52% of the stock is currently owned by company insiders.

About Sweetgreen

Sweetgreen, Inc, together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.