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

Sprouts Farmers Market, Inc. (NASDAQ:SFM) 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 changing hands.

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

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. Oppenheimer reiterated a “market perform” rating on shares of Sprouts Farmers Market in a research note on Monday. Bank of America upgraded shares of Sprouts Farmers Market from an “underperform” rating to a “buy” rating and raised their target price for the company from $30.00 to $70.00 in a research note on Tuesday, February 27th. BMO Capital Markets raised their target price on shares of Sprouts Farmers Market from $31.00 to $40.00 and gave the company an “underperform” rating in a research note on Thursday. Wells Fargo & Company raised their target price on shares of Sprouts Farmers Market from $48.00 to $62.00 and gave the company an “underweight” rating in a research note on Thursday. Finally, Evercore ISI decreased their price target on shares of Sprouts Farmers Market from $62.00 to $61.00 and set an “in-line” rating on the stock in a research report on Tuesday, April 16th. Two investment 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.com, Sprouts Farmers Market presently has an average rating of “Hold” and a consensus target price of $53.50.

Insider Activity at Sprouts Farmers Market

In related news, insider Brandon F. Lombardi sold 22,799 shares of Sprouts Farmers Market stock in a transaction dated Monday, February 26th. The shares were sold at an average price of $59.98, for a total transaction of $1,367,484.02. Following the completion of the transaction, the insider now directly owns 8,328 shares of the company’s stock, valued at approximately $499,513.44. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other Sprouts Farmers Market news, insider Brandon F. Lombardi sold 22,799 shares of the business’s stock in a transaction dated Monday, February 26th. The shares were sold at an average price of $59.98, for a total value of $1,367,484.02. Following the completion of the transaction, the insider now directly owns 8,328 shares of the company’s stock, valued at $499,513.44. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Brandon F. Lombardi sold 3,865 shares of the business’s stock in a transaction dated Wednesday, February 28th. The stock was sold at an average price of $62.21, for a total transaction of $240,441.65. Following the completion of the transaction, the insider now directly owns 8,328 shares of the company’s stock, valued at $518,084.88. The disclosure for this sale can be found here. Insiders sold 160,852 shares of company stock valued at $10,032,745 in the last ninety days. Insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Sprouts Farmers Market

Several institutional investors have recently modified their holdings of the business. VisionPoint Advisory Group LLC acquired a new position in Sprouts Farmers Market during the third quarter valued at approximately $25,000. Rise Advisors LLC acquired a new position in Sprouts Farmers Market during the first quarter valued at approximately $26,000. Blue Bell Private Wealth Management LLC acquired a new position in Sprouts Farmers Market during the first quarter valued at approximately $36,000. Bank Julius Baer & Co. Ltd Zurich acquired a new position in Sprouts Farmers Market during the fourth quarter valued at approximately $38,000. Finally, GAMMA Investing LLC acquired a new position in Sprouts Farmers Market during the fourth quarter valued at approximately $43,000.

Sprouts Farmers Market Stock Performance

The stock has a market cap of $7.45 billion, a price-to-earnings ratio of 28.66, a PEG ratio of 2.40 and a beta of 0.50. The stock’s fifty day moving average is $63.29 and its 200-day moving average is $52.52. The company has a quick ratio of 0.51, a current ratio of 1.10 and a debt-to-equity ratio of 0.12.

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.