GAMMA Investing LLC Increases Stake in Sprouts Farmers Market

GAMMA Investing LLC has increased its investment in Sprouts Farmers Market, Inc. (NASDAQ:SFM) by 34.7% during the third quarter of the year, according to recent reports. The firm now holds 1,714 shares of the company after acquiring an additional 442 shares during this period. As per their latest filing with the SEC, the total value of GAMMA Investing LLC’s holdings in Sprouts Farmers Market stands at approximately $189,000.

Other institutional investors and hedge funds have also shown interest in Sprouts Farmers Market by buying and selling shares. For instance, Cetera Advisors LLC bought a new stake in Sprouts Farmers Market worth around $349,000 in the first quarter. Similarly, BNP PARIBAS ASSET MANAGEMENT Holding S.A. raised its stake in the company by 8.5% during the same period, now owning 616,429 shares valued at about $39,748,000 after adding 48,225 shares to its portfolio. Inspire Investing LLC also increased its shares by 78.8%, owning 26,113 shares valued at approximately $1,684,000 following the acquisition of an additional 11,508 shares. Ritholtz Wealth Management and Hennessy Advisors Inc. have also enhanced their respective stakes in Sprouts Farmers Market during the last few quarters.

Insider Transactions

In related news, several executives at Sprouts Farmers Market have sold shares of the company. CEO Jack Sinclair sold 5,714 shares on August 5 at an average price of $95.52, bringing in a total of $545,801.28. Post-sale, he retains ownership of 233,860 shares of the company's stock, valued at around $22,338,307.20. Additionally, Director Joe Fortunato sold 7,895 shares on August 2 at an average price of $98.38, totaling $776,710.10. After this transaction, he owns 45,071 shares valued at approximately $4,434,084.98. In the last quarter alone, insiders sold a significant number of shares, totaling 123,221 shares worth $12,296,487, leaving insiders with a 1.10% ownership in the company.

Performance of Sprouts Farmers Market Shares

On Friday, shares of Sprouts Farmers Market opened at $116.12. Over the past year, the stock has seen a low of $39.76 and a high of $116.24. Financial metrics indicate that the company has a quick ratio of 0.44, a current ratio of 1.03, and a minimal debt-to-equity ratio of 0.01. Sprouts Farmers Market currently boasts a market capitalization of $11.63 billion, with a price-to-earnings ratio of 36.40 and a PEG ratio of 3.24. The business's stock has shown a moving average of $103.37 over the last 50 days and $85.52 over the last 200 days.

For its latest quarterly earnings report released on July 29, the company reported earnings per share of $0.94, exceeding analysts' expectations of $0.78 by $0.16. The revenue for the quarter stood at $1.90 billion, surpassing the forecasted $1.84 billion. Year-over-year, this marked a growth of 12.3%, with net margins at 4.52% and a return on equity of 27.53%. Analysts project that Sprouts Farmers Market will report an EPS of 3.37 for the current year.

Analyst Ratings Update

Recently, several equities research analysts have provided updates regarding Sprouts Farmers Market stock. Wells Fargo & Company upgraded its rating from “underweight” to “equal weight” and increased the price target from $62 to $90. Similarly, BMO Capital Markets moved from an “underperform” rating to “market perform” and raised the price target from $40 to $102. Deutsche Bank raised their price target from $63 to $76, maintaining a “hold” rating. Evercore ISI upgraded the stock from an “in-line” rating to “outperform” with a heightened target price of $120. Bank of America also adjusted its price target upward from $100 to $115, maintaining a “buy” rating. Currently, nine analysts have rated the stock as a hold while three have issued a buy rating, positioning the consensus rating at “Hold” with an average price target of $99.80.

Overview of Sprouts Farmers Market

Sprouts Farmers Market, Inc. and its subsidiaries focus on retailing fresh, natural, and organic food products under its brand across the United States. The company’s offerings include a variety of perishable products such as fresh produce, meats, seafood, bakery items, and dairy alternatives, as well as non-perishable items like groceries, vitamins, bulk items, frozen foods, and natural health products.

GAMMA, Investing, Sprouts