$1.1M Insider Buys Bolster Sweetgreen as 16 Brokers Maintain $11.43 Target
Analysts maintain a consensus Hold on Sweetgreen with a $11.43 average 12-month target from 16 brokerages. CEO Jonathan Neman and co-founder Nicolas Jammet bought 197,915 shares at $5.54 each ($1.1m), and Q3 revenue of $172.4m and EPS of -$0.31 missed estimates by $6.9m and $0.13.
1. Analysts’ Consensus Holds Steady
Sixteen brokerages covering Sweetgreen maintain an average recommendation of Hold, reflecting a balanced view of the company’s prospects. Among them, two analysts rate the stock Sell, eleven rate it Hold and three assign a Buy rating. The average one-year price target stands at 11.43, a figure that suggests limited upside from current levels and underscores analyst caution given the company’s ongoing challenges in returning to profitability.
2. Insider Purchases Signal Confidence
Insiders increased their stakes significantly in mid-November, with co-founder Nicolas Jammet acquiring 18,115 shares at an average cost of 5.51 per share and CEO Jonathan Neman purchasing 179,800 shares at 5.56. These transactions, disclosed in SEC filings, raised insider ownership to 19.78% and suggest that management views current valuations as attractive despite recent operational headwinds.
3. Institutional Investors Adjust Positions
Institutional and hedge fund ownership accounts for 95.75% of shares outstanding. Recent filings show Glass Jacobson Investment Advisors adding a new position worth approximately 30,000. Nisa Investment Advisors boosted its stake by 98.2% to 2,129 shares (32,000 value), Skandinaviska Enskilda Banken increased its holding by 312.3% to 2,808 shares (42,000 value), Larson Financial Group raised its position by 165.8% to 3,766 shares (30,000 value), and Bogart Wealth grew its stake by 1,150.0% to 5,000 shares (40,000 value). These reallocations reflect selective conviction among institutional players despite broader market headwinds.
4. Recent Earnings Miss Expectations and Outlook Remains Challenging
In its most recent quarter, Sweetgreen reported a loss per share of 0.31, missing consensus estimates by 0.13, on revenue of 172.4 million versus expectations of 179.3 million. Same-store sales declined, driving a negative net margin of 16.6% and a return on equity of –25.7%. Revenue was down 0.6% year-over-year. Analysts forecast a full-year loss per share of 0.74, highlighting the company’s need to regain sales momentum and move back toward profitability.