Sprouts Farmers Market, Inc. (NASDAQ:SFM – Get Free Report) reached a new 52-week low on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $60.80 and last traded at $62.2040, with a volume of 2,547,037 shares changing hands. The stock had previously closed at $64.41.
The company reported $1.21 EPS for the quarter, missing analysts’ consensus estimates of $1.22 by ($0.01). Sprouts Farmers Market had a return on equity of 34.31% and a net margin of 5.45%. The business had revenue of $2.30 billion for the quarter, compared to analyst estimates of $2.33 billion. During the same quarter last year, the firm earned $1.22 earnings per share. The firm’s quarterly revenue was up 4.7% compared to the same quarter last year.
Sprouts Farmers Market News Roundup
Here are the key news stories impacting Sprouts Farmers Market this week:
- Positive Sentiment: Goldman Sachs maintained a Buy rating, while JPMorgan and Wells Fargo retained Overweight ratings. These firms still see potential upside from current levels, although all three sharply reduced their price targets. Goldman Sachs rating
- Neutral Sentiment: Goldman cut its target from $94 to $58, JPMorgan reduced its target from $90 to $58, and Wells Fargo lowered its target from $100 to $60. The continued bullish ratings provide some support, but the magnitude of the reductions signals a reset in expectations. JPMorgan price target
- Negative Sentiment: Sprouts missed third-quarter estimates, reporting adjusted EPS of $1.21 versus consensus of $1.22, while revenue also fell short. Analysts cited soft comparable-store sales and margin pressure. SFM Q3 earnings miss
- Negative Sentiment: Management reduced full-year 2026 EPS guidance to $4.80 from expectations of approximately $5.52 and forecast revenue of $9.2 billion versus consensus near $9.5 billion. Fourth-quarter EPS guidance of $0.47-$0.51 is particularly below the $1.21 analyst estimate.
- Negative Sentiment: Bank of America downgraded SFM to Underperform with a $47 target, while RBC moved the shares to Sector Perform. Commentary characterized the company’s challenges as structural rather than temporary, raising concerns about competitive pressure and the lack of near-term catalysts. Analyst views on Sprouts
Analyst Upgrades and Downgrades
SFM has been the subject of several research reports. The Goldman Sachs Group dropped their target price on Sprouts Farmers Market from $94.00 to $58.00 and set a “buy” rating for the company in a research report on Friday. Barclays reduced their price objective on Sprouts Farmers Market from $100.00 to $65.00 and set an “overweight” rating for the company in a research note on Thursday. UBS Group reaffirmed a “neutral” rating and issued a $74.00 price objective on shares of Sprouts Farmers Market in a report on Monday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Sprouts Farmers Market in a report on Monday, September 21st. Finally, Roth Capital set a $56.00 price target on shares of Sprouts Farmers Market in a report on Thursday. Five investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $64.92.
View Our Latest Analysis on SFM
Insider Buying and Selling at Sprouts Farmers Market
In other Sprouts Farmers Market news, Director Joseph O’Leary sold 2,597 shares of the firm’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $82.57, for a total value of $214,434.29. Following the completion of the transaction, the director owned 14,710 shares of the company’s stock, valued at approximately $1,214,604.70. This trade represents a 15.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Jack Sinclair sold 10,788 shares of Sprouts Farmers Market stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $86.80, for a total value of $936,398.40. Following the transaction, the chief executive officer owned 269,980 shares of the company’s stock, valued at $23,434,264. The trade was a 3.84% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 46,041 shares of company stock worth $3,460,383 over the last ninety days. Corporate insiders own 1.30% of the company’s stock.
Hedge Funds Weigh In On Sprouts Farmers Market
A number of institutional investors and hedge funds have recently made changes to their positions in SFM. Annis Gardner Whiting Capital Advisors LLC purchased a new position in Sprouts Farmers Market during the 1st quarter worth approximately $25,000. Bell Investment Advisors Inc acquired a new position in Sprouts Farmers Market during the 2nd quarter valued at $29,000. Ameritas Advisory Services LLC bought a new position in shares of Sprouts Farmers Market during the 2nd quarter worth about $29,000. Geneos Wealth Management Inc. bought a new position in shares of Sprouts Farmers Market during the 1st quarter worth approximately $31,000. Finally, Trust Co. of Vermont bought a new stake in Sprouts Farmers Market during the 2nd quarter worth approximately $32,000.
Sprouts Farmers Market Trading Up 3.5%
The company has a quick ratio of 0.43, a current ratio of 0.99 and a debt-to-equity ratio of 0.07. The firm has a market cap of $4.63 billion, a price-to-earnings ratio of 9.54, a price-to-earnings-growth ratio of 1.58 and a beta of 0.67. The business’s fifty day moving average is $70.26 and its two-hundred day moving average is $76.45.
Sprouts Farmers Market Company Profile
Sprouts Farmers Market, Inc (NASDAQ:SFM) is a specialty grocery retailer focused on fresh, natural and organic foods. Its stores offer a broad selection of fresh produce, meat and seafood, dairy products, bulk foods, vitamins and supplements, pantry staples, bakery items, deli products and prepared foods. The company emphasizes products that support healthy eating, including organic, plant-based and specialty-diet options.
Founded in 2002, Sprouts Farmers Market grew from its first store in Chandler, Arizona, into a national grocery chain.
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