Sprouts Farmers Market Inc. (NASDAQ: SFM) Is Getting Increasingly Hard To Ignore


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Sprouts Farmers Market Inc. (NASDAQ:SFM). The institutional investor has increased its shareholding in the Consumer Defensive company by 1.89% to 11.31 million shares with purchase of 0.21 million shares. This fresh investment now brings its stake to 9.60% valued currently at $289.35 million. In addition, Renaissance Technologies LLC raised its holdings by 0.43 million to 7.91 million shares. And ClearBridge Investments LLC has lifted its position by 2.25% or 93392.0 shares – to 4.24 million shares.

    With over 2.95 million Sprouts Farmers Market Inc. (SFM) shares trading Wednesday and a closing price of $27.22 on the day, the dollar volume was approximately $80.34 million. The shares have shown a negative weekly performance of -1.42% and its price on 07/28/20 gained nearly 0.72%. Currently, there are 117.55M common shares owned by the public and among those 117.19M shares have been available to trade.

    The analysts have set the share’s price value over the next 12 months at a high of $33.00 and a low of $20.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Sprouts Farmers Market Inc. stock is 2.70 for the next 12 months. The average price target is -8.32% below its last price level and a downside to the estimated low will see the stock lose -36.1% over that period. But an upside of 17.52% will see the stock hit the forecast high price target while mean target price for the stock is $25.00.

    Insiders at the company have transacted a total of 36 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 19 of these insider trades were purchases, accounting for 259,342 shares. Insider sales of the common stock occurred on 17 occasions, with total insider shares sold totaling 134,744 shares.

    The top 3 mutual fund holders in Sprouts Farmers Market Inc. are T Rowe Price Mid Cap Growth Fund, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF. T Rowe Price Mid Cap Growth Fund owns 4.0 million shares of the company’s stock, all valued at over $102.36 million. The company sold -1.75 million shares recently to bring their total holdings to about 3.40% of the shares outstanding. Vanguard Total Stock Market Index sold 23108.0 shares to see its total holdings shrink to 3.36 million shares valued at over $85.96 million and representing 2.85% of the shares outstanding. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.69% of the shares outstanding.

    Shares of Sprouts Farmers Market Inc. (NASDAQ: SFM) opened at $26.91, down -$0.11 from a prior closing price of $27.02. However, the script later closed the day at $27.22, up 0.72%. The company’s stock has a 5-day price change of -1.42% and 27.03% over the past three months. SFM shares are trading 39.64% year to date (YTD), with the 12-month market performance up to 57.37% higher. It has a 12-month low price of $13.00 and touched a high of $28.00 over the same period. Currently, 2.95 million shares have been traded, compared to an average intraday trading volume of 2.58 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.43%, 9.12%, and 33.93% respectively.

    Institutional ownership of Sprouts Farmers Market Inc. (NASDAQ: SFM) shares accounts for 97.80% of the company’s 117.55M shares outstanding. Mutual fund holders own 42.58%, while other institutional holders and individual stakeholders account for 51.71% and 14.76% respectively.

    It has a market capitalization of $3.23B and a beta (3y monthly) value of 0.25. The stock’s trailing 12-month PE ratio is 17.23, while the earnings-per-share (ttm) stands at $1.57. The company has a PEG of 1.80 and a Quick Ratio of 0.50 with the debt-to-equity ratio at 0.69. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.85% over the week and 3.86% over the month.

    Analysts forecast that Sprouts Farmers Market Inc. (SFM) will achieve an EPS of $0.36 for the current quarter, $0.25 for the next quarter and $1.51 for 2021. The lowest estimate earnings-per-share for the quarter is $0.11 while analysts give the company a high EPS estimate of $0.46. Comparatively, EPS for the current quarter was $0.3 a year ago. Earnings per share for the fiscal year are expected to increase by 2.30%, and -10.35% over the next financial year. EPS should shrink at an annualized rate of 9.58% over the next five years, compared to 12.40% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 19 brokerage firm advisors rate Sprouts Farmers Market Inc. (SFM) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 10 of the 19 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the SFM, a number of firms have released research notes about the stock. Goldman stated their Neutral rating for the stock in a research note on July 21, 2020, with the firm’s price target at $26. Barclays coverage for the Sprouts Farmers Market Inc. (SFM) stock in a research note released on July 08, 2020 offered a Underweight rating with a price target of $20. Oppenheimer was of a view on May 14, 2020 that the stock is Perform, while Oppenheimer gave the stock Outperform rating on April 21, 2020, issuing a price target of $25. BMO Capital Markets on their part issued Market Perform rating on March 18, 2020.


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