Considering Sprouts Farmers Market Inc. (SFM) as a potential investment: What Should You Do?

The price of Sprouts Farmers Market Inc. (NASDAQ: SFM) closed at 27.44 in the last session, up 0.73% from day before closing price of $27.24. In other words, the price has increased by $+0.20 from its previous closing price. On the day, 1012546 shares were traded. SFM reached its highest trading level at $27.61 during the session, while it also had its lowest trading level at $27.10.

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We take a closer look at SFM’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 10.12 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 10.43. For the most recent quarter (mrq), Quick Ratio is recorded 0.70 and its Current Ratio is at 1.30. In the meantime, Its Debt-to-Equity ratio is 0.26 whereas as Long-Term Debt/Eq ratio is at 0.26.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, BofA Securities on May 05, 2022, Downgraded its rating to Underperform and sets its target price to $25 from $40 previously.

On April 29, 2022, BofA Securities Upgraded its rating to Buy which previously was Underperform and also upped its target price recommendation from $21 to $40.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Aug 11 when Neal John Scott sold 2,565 shares for $29.94 per share. The transaction valued at 76,796 led to the insider holds 40,544 shares of the business.

Sanders Dan J sold 59,607 shares of SFM for $1,803,427 on Aug 08. The Chief Store Operations Officer now owns 9,787 shares after completing the transaction at $30.26 per share. On Jun 27, another insider, Sinclair Jack, who serves as the Chief Executive Officer of the company, sold 26,536 shares for $25.65 each. As a result, the insider received 680,648 and left with 293,591 shares of the company.

Valuation Measures:

As of this moment, Sprouts’s Price-to-Earnings (P/E) ratio for their current fiscal year is 12.29, and their Forward P/E ratio for the next fiscal year is 11.84. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.46. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.47 while its Price-to-Book (P/B) ratio in mrq is 2.95.

Stock Price History:

Over the past 52 weeks, SFM has reached a high of $35.34, while it has fallen to a 52-week low of $21.18. The 50-Day Moving Average of the stock is 28.81, while the 200-Day Moving Average is calculated to be 28.66.

Shares Statistics:

According to the various share statistics, SFM traded on average about 1.50M shares per day over the past 3-months and 1.34M shares per day over the past 10 days. A total of 109.07M shares are outstanding, with a floating share count of 106.82M. Shares short for SFM as of Jul 14, 2022 were 14.35M with a Short Ratio of 9.93, compared to 14.46M on Jun 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 13.09% and a Short% of Float of 15.07%.

Earnings Estimates

The company has 17 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.51 for the current quarter, with a high estimate of $0.55 and a low estimate of $0.49, while EPS last year was $0.52. The consensus estimate for the next quarter is $0.51, with high estimates of $0.58 and low estimates of $0.39.

Analysts are recommending an EPS of between $2.21 and $1.79 for the fiscal current year, implying an average EPS of $2.14. EPS for the following year is $2.27, with 17 analysts recommending between $2.45 and $1.73.

Revenue Estimates

According to 15 analysts, the current quarter’s revenue is expected to be $1.58B. It ranges from a high estimate of $1.59B to a low estimate of $1.56B. As of the current estimate, Sprouts Farmers Market Inc.’s year-ago sales were $1.6B, an estimated decrease of -1.10% from the year-ago figure. For the next quarter, 15 analysts are estimating revenue of $1.57B, an increase of 3.80% over than the figure of $-1.10% in the same quarter last year. There is a high estimate of $1.58B for the next quarter, whereas the lowest estimate is $1.54B.

A total of 17 analysts have provided revenue estimates for SFM’s current fiscal year. The highest revenue estimate was $6.38B, while the lowest revenue estimate was $6.26B, resulting in an average revenue estimate of $6.33B. In the same quarter a year ago, actual revenue was $6.1B, up 3.80% from the average estimate. Based on 16 analysts’ estimates, the company’s revenue will be $6.75B in the next fiscal year. The high estimate is $6.87B and the low estimate is $6.6B. The average revenue growth estimate for next year is up 6.60% from the average revenue estimate for this year.