Sprouts Farmers Market (NASDAQ:SFM) Shares Gap Up on Better-Than-Expected Earnings

Sprouts Farmers Market, Inc. (NASDAQ:SFM) gapped up prior to trading on Thursday following a better than expected earnings announcement. 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 trading hands.

The company reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.77 by $0.14. Sprouts Farmers Market had a net margin of 4.52% and a return on equity of 27.53%. The firm had revenue of $1.95 billion for the quarter, compared to analysts’ expectations of $1.88 billion. During the same period in the prior year, the firm earned $0.65 EPS. The business’s revenue was up 13.6% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of research analysts have commented on the company. Wells Fargo & Company upped their price objective on Sprouts Farmers Market from $90.00 to $130.00 and gave the company an “equal weight” rating in a report on Thursday. BMO Capital Markets upped their price target on shares of Sprouts Farmers Market from $102.00 to $140.00 and gave the company a “market perform” rating in a research note on Thursday. Melius Research began coverage on shares of Sprouts Farmers Market in a research note on Monday, September 23rd. They issued a “hold” rating and a $105.00 price objective for the company. The Goldman Sachs Group raised their target price 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. Finally, Evercore ISI boosted their price target on Sprouts Farmers Market from $125.00 to $130.00 and gave the company an “outperform” rating in a research note on Tuesday, October 22nd. Nine analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $112.20.

Insiders Place Their Bets

In related news, insider Dustin Hamilton sold 921 shares of the firm’s stock in a transaction dated Friday, October 11th. The stock was sold at an average price of $113.60, for a total value of $104,625.60. Following the sale, the insider now directly owns 25,251 shares of the company’s stock, valued at $2,868,513.60. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. In other news, insider Dustin Hamilton sold 921 shares of the stock in a transaction dated Friday, October 11th. The shares were sold at an average price of $113.60, for a total value of $104,625.60. Following the completion of the transaction, the insider now owns 25,251 shares of the company’s stock, valued at approximately $2,868,513.60. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Jack Sinclair sold 5,714 shares of the firm’s stock in a transaction that occurred on Monday, August 5th. The shares were sold at an average price of $95.52, for a total transaction of $545,801.28. Following the completion of the sale, the chief executive officer now owns 233,860 shares in the company, valued at approximately $22,338,307.20. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 57,543 shares of company stock worth $5,751,870 over the last three months. Insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SFM. Crewe Advisors LLC grew 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 last quarter. Whittier Trust Co. of Nevada Inc. acquired a new stake in shares of Sprouts Farmers Market during the second quarter valued at about $29,000. V Square Quantitative Management LLC bought a new stake in shares of Sprouts Farmers Market during the third quarter worth about $38,000. Quarry LP increased its stake in shares of Sprouts Farmers Market by 1,425.8% in the second 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 bought a new position in Sprouts Farmers Market in the 3rd quarter valued at approximately $60,000.

Sprouts Farmers Market Trading Up 8.1 %

The company has a current ratio of 1.03, a quick ratio of 0.44 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $12.86 billion, a price-to-earnings ratio of 40.26, a P/E/G ratio of 2.75 and a beta of 0.56. The firm’s 50-day moving average is $108.91 and its 200 day moving average is $90.61.

About Sprouts Farmers Market

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.