Bradley E. Singer, a director at Sweetgreen, Inc. (NYSE:SG), has sold a significant portion of his holdings in the company. According to a recent SEC filing, Singer sold 42,730 shares of Sweetgreen's Class A common stock on November 20, 2024. The shares were sold at an average price of $38.09 per share, amounting to a total transaction value of approximately $1.63 million.
Following this sale, Singer retains ownership of 139,052 shares in the company. The transaction was executed in multiple trades, with prices ranging from $38.00 to $38.35.
"In other recent news, Sweetgreen Incorporated reported significant growth in its Third Quarter 2024 Earnings Call. The company saw a 13% year-over-year increase in sales, hitting $173.4 million, and a 6% growth in same-store sales. Net loss was reduced to $20.8 million, down from $25.1 million year-over-year. In addition, Sweetgreen opened five new restaurants during the quarter, bringing the total to 236 locations.
TD Cowen maintained its Buy rating and $45.00 price target for Sweetgreen, expressing confidence in the company's growth strategy and the potential of its Infinite Kitchen concept. The firm also anticipates that the expansion of average unit volume (AUV) through the Infinite Kitchen will be the next phase in Sweetgreen's growth narrative.
Looking ahead, Sweetgreen plans to open at least 40 new restaurants in FY 2025, half of which will feature the Infinite Kitchen technology. The company also raised its fiscal 2024 guidance, projecting revenue between $675 million to $680 million and same-store sales growth of 6% to 7%."
InvestingPro Insights
As Bradley E. Singer reduces his stake in Sweetgreen, Inc. (NYSE:SG), investors may want to consider the company's current financial position and market performance. According to InvestingPro data, Sweetgreen's market capitalization stands at $4.38 billion, reflecting its position in the fast-casual restaurant sector.
The company has shown strong revenue growth, with a 21.72% increase over the last twelve months as of Q3 2024, reaching $668.95 million. This growth trajectory aligns with the company's expansion efforts and increasing consumer demand for healthier dining options. However, it's worth noting that despite this top-line growth, Sweetgreen is currently operating at a loss, with an adjusted operating income of -$90.05 million for the same period.
Investors should also be aware of Sweetgreen's impressive stock performance. The company has delivered a remarkable year-to-date price total return of 235.4% as of the latest data, significantly outperforming the broader market. This surge in stock price may have influenced Singer's decision to sell a portion of his holdings.
An InvestingPro Tip suggests that Sweetgreen's stock price is close to its 52-week high, currently at 88.64% of that peak. This could indicate strong investor confidence but also raises questions about potential overvaluation. Another InvestingPro Tip points out that analysts have revised their earnings expectations upwards for the upcoming fiscal year, which may signal improving fundamentals for the company.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights on Sweetgreen's financial health and market position. In fact, there are 13 more InvestingPro Tips available for Sweetgreen, providing a deeper understanding of the company's prospects and potential risks.
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