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

Sprouts Farmers Market, Inc. (NASDAQ:SFM)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $64.29, but opened at $71.40. Sprouts Farmers Market shares last traded at $71.93, with a volume of 617,164 shares trading hands.

The company reported $1.12 earnings per share for the quarter, beating analysts’ consensus estimates of $1.00 by $0.12. Sprouts Farmers Market had a net margin of 3.79% and a return on equity of 26.71%. The company had revenue of $1.88 billion for the quarter, compared to analyst estimates of $1.85 billion. During the same period last year, the firm earned $0.98 earnings per share. The firm’s revenue was up 8.7% on a year-over-year basis.

Analyst Ratings Changes

A number of analysts recently issued reports on the stock. Oppenheimer restated a “market perform” rating on shares of Sprouts Farmers Market in a report on Monday. BMO Capital Markets raised their price objective on shares of Sprouts Farmers Market from $31.00 to $40.00 and gave the stock an “underperform” rating in a report on Thursday. Wells Fargo & Company raised their price objective on shares of Sprouts Farmers Market from $48.00 to $62.00 and gave the stock an “underweight” rating in a report on Thursday. The Goldman Sachs Group raised their price objective on shares of Sprouts Farmers Market from $56.00 to $71.00 and gave the stock a “buy” rating in a report on Tuesday, March 5th. Finally, Evercore ISI reduced their target price on shares of Sprouts Farmers Market from $62.00 to $61.00 and set an “in-line” rating for the company in a research note on Tuesday, April 16th. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating and two have given a buy rating to the stock. According to MarketBeat, Sprouts Farmers Market presently has an average rating of “Hold” and a consensus target price of $53.50.

Insider Transactions at Sprouts Farmers Market

In related news, Director Joe Fortunato sold 13,000 shares of the business’s stock in a transaction that occurred on Monday, March 4th. The shares were sold at an average price of $63.71, for a total transaction of $828,230.00. Following the completion of the transaction, the director now owns 39,395 shares of the company’s stock, valued at $2,509,855.45. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. In related news, VP Stacy W. Hilgendorf sold 417 shares of the business’s stock in a transaction that occurred on Friday, March 15th. The shares were sold at an average price of $62.47, for a total transaction of $26,049.99. Following the completion of the transaction, the vice president now owns 10,331 shares of the company’s stock, valued at $645,377.57. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Joe Fortunato sold 13,000 shares of Sprouts Farmers Market stock in a transaction that occurred on Monday, March 4th. The shares were sold at an average price of $63.71, for a total transaction of $828,230.00. Following the sale, the director now owns 39,395 shares of the company’s stock, valued at $2,509,855.45. The disclosure for this sale can be found here. Insiders sold 160,852 shares of company stock worth $10,032,745 over the last quarter. Corporate insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Sprouts Farmers Market

Several hedge funds have recently bought and sold shares of SFM. Nordea Investment Management AB lifted its holdings in shares of Sprouts Farmers Market by 9.8% in the 1st quarter. Nordea Investment Management AB now owns 3,336,707 shares of the company’s stock worth $216,419,000 after acquiring an additional 297,067 shares during the last quarter. Point72 Asset Management L.P. lifted its holdings in shares of Sprouts Farmers Market by 411.4% in the 4th quarter. Point72 Asset Management L.P. now owns 1,538,410 shares of the company’s stock worth $74,013,000 after acquiring an additional 1,237,610 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Sprouts Farmers Market by 36.9% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,478,588 shares of the company’s stock worth $71,135,000 after acquiring an additional 398,901 shares during the last quarter. Boston Trust Walden Corp lifted its holdings in shares of Sprouts Farmers Market by 1.2% in the 4th quarter. Boston Trust Walden Corp now owns 1,477,341 shares of the company’s stock worth $71,075,000 after acquiring an additional 17,565 shares during the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of Sprouts Farmers Market by 6.6% in the 3rd quarter. Invesco Ltd. now owns 1,436,821 shares of the company’s stock worth $61,496,000 after acquiring an additional 88,997 shares during the last quarter.

Sprouts Farmers Market Trading Up 12.0 %

The stock has a market capitalization of $7.29 billion, a P/E ratio of 28.69, a price-to-earnings-growth ratio of 2.40 and a beta of 0.50. The company has a current ratio of 1.10, a quick ratio of 0.51 and a debt-to-equity ratio of 0.12. The stock’s fifty day moving average price is $63.66 and its two-hundred day moving average price is $52.65.

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.