The stock of Sprouts Farmers Market Inc (NASDAQ: SFM) has increased by 0.78 when compared to last closing price of 66.98. Despite this, the company has experienced a 3.16% gain in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-29 that Sprouts Farmers’ (SFM) first-quarter results are likely to reflect a focus on product innovation, targeted marketing and creating a robust omnichannel experience.
Is It Worth Investing in Sprouts Farmers Market Inc (NASDAQ: SFM) Right Now?
Sprouts Farmers Market Inc (NASDAQ: SFM) has a price-to-earnings ratio that is above its average at 26.98x. The stock has a 36-month beta value of 0.49. Opinions on the stock are mixed, with 7 analysts rating it as a “buy,” 6 as “overweight,” 9 as “hold,” and 1 as “sell.”
The public float for SFM is 100.60M, and at present, short sellers hold a 13.60% of that float. On April 30, 2024, the average trading volume of SFM was 1.35M shares.
SFM’s Market Performance
The stock of Sprouts Farmers Market Inc (SFM) has seen a 3.16% increase in the past week, with a 4.68% rise in the past month, and a 34.01% gain in the past quarter. The volatility ratio for the week is 2.51%, and the volatility levels for the past 30 days are at 2.23% for SFM. The simple moving average for the last 20 days is 5.56% for SFM stock, with a simple moving average of 40.00% for the last 200 days.
Analysts’ Opinion of SFM
Many brokerage firms have already submitted their reports for SFM stocks, with BofA Securities repeating the rating for SFM by listing it as a “Buy.” The predicted price for SFM in the upcoming period, according to BofA Securities is $70 based on the research report published on February 27, 2024 of the current year 2024.
Evercore ISI, on the other hand, stated in their research note that they expect to see SFM reach a price target of $45, previously predicting the price at $40. The rating they have provided for SFM stocks is “In-line” according to the report published on January 04th, 2024.
Goldman gave a rating of “Buy” to SFM, setting the target price at $49 in the report published on December 12th of the previous year.
SFM Trading at 8.40% from the 50-Day Moving Average
After a stumble in the market that brought SFM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -0.78% of loss for the given period.
Volatility was left at 2.23%, however, over the last 30 days, the volatility rate increased by 2.51%, as shares surge +6.12% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +28.25% upper at present.
During the last 5 trading sessions, SFM rose by +3.16%, which changed the moving average for the period of 200-days by +76.42% in comparison to the 20-day moving average, which settled at $64.14. In addition, Sprouts Farmers Market Inc saw 40.30% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SFM starting from Konat Nicholas, who sale 31,846 shares at the price of $62.13 back on Mar 22 ’24. After this action, Konat Nicholas now owns 82,495 shares of Sprouts Farmers Market Inc, valued at $1,978,592 using the latest closing price.
Zalatoris Timmi, the Chief Human Resources Officer of Sprouts Farmers Market Inc, sale 5,353 shares at $61.62 during a trade that took place back on Mar 20 ’24, which means that Zalatoris Timmi is holding 10,895 shares at $329,852 based on the most recent closing price.
Stock Fundamentals for SFM
Current profitability levels for the company are sitting at:
- 0.05 for the present operating margin
- 0.37 for the gross margin
The net margin for Sprouts Farmers Market Inc stands at 0.04. The total capital return value is set at 0.13. Equity return is now at value 23.59, with 7.21 for asset returns.
Based on Sprouts Farmers Market Inc (SFM), the company’s capital structure generated 0.59 points at debt to capital in total, while cash flow to debt ratio is standing at 0.28. The debt to equity ratio resting at 1.45. The interest coverage ratio of the stock is 35.81.
Currently, EBITDA for the company is 660.67 million with net debt to EBITDA at 2.22. When we switch over and look at the enterprise to sales, we see a ratio of 1.21. The receivables turnover for the company is 126.92for trailing twelve months and the total asset turnover is 2.05. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.10.
Conclusion
To sum up, Sprouts Farmers Market Inc (SFM) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
