Are Analysts Chasing Sprouts Farmers Market, Inc. (SFM) Like the Rest of Us

A handful of technical analysis tools are suggesting that Sprouts Farmers Market, Inc. (NASDAQ:SFM) overall gets 48% Sell rating. The stock is also flashing a Hold from the Barchart TrendSpotter trading system. Traders hoping to speculate on the SFM’s short-term trajectory should know that short terms indicators for the stock averaged 20% Sell with an average daily trading volume over the past 20 days at 1236940 shares. SFM stock has overall a 0.75% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 1925744 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 1915854 shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $23.53. Below this, the next support is placed in the zone of $23.35. Till the time, the SFM stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 44.66 on daily chart, which may remain a cause for concern. If the price breaks below $23.35 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $23.85 mark may result into a pull-back move towards $23.99 level.

Sprouts Farmers Market, Inc. (SFM) is projected to climb by 14.56 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $40 price as 12-month high target. This represents a whopping 68.78 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $25, which represents a return potential of 5.49 percent when compared to the closing price of the stock of $23.7 on Monday, February 11. The lowest price target for the stock is $21 — slightly more than -11.39 percent from SFM’s current share price.

Here’s a rundown of insider trading activity for sense of Sprouts Farmers Market, Inc. (NASDAQ:SFM). The earliest insider trade took place on 12/10/2018. Blum Kristen E gathered a total of 4 thousand shares of company at average share price of $24.2. The total for the purchase was set at $96.8 thousand. After this transaction, the Director account balance stood at 16.98 thousand shares. The stock lost -2.81 percent since that insider purchase. On 12/04/2018, Townsend Steven H, Director, purchased 2 thousand shares at a price per share of $24.31. This added 48.62 thousand shares to the insider’s fortune and the stock saw a -3.25 percent retreat in value since the news became public. This transaction left 30.21 thousand shares in the Director account. On 11/30/2018, Interim Co-CEO and CFO Lukow Bradley performed a purchase transaction worth $230.9 thousand. This purchase at $23.09 each has added 10 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 1.86 percent increase since the transaction was reported. The insider now is left with 139.6 thousand shares remaining in the account. Mcglinchey David, who performs the Chief Merchandising Officer job, bought 5 thousand shares for $115.5 thousand. The acquisition occurred on 11/30/2018 was priced at $23.1 per share. The share price soared 1.82 percent since the reporting date. Mcglinchey David now left with a stake of 12.03 thousand SFM stock worth $285.21 thousand after the insider buying.

SFM shares accumulated 0.18 points or 0.77 percent on Monday to $23.7 with a light trade volume of 1.862 million shares. After opening the session at $23.67, the shares went as high as $23.82 and as low as $23.5, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.05 billion and now has 128.85 million shares outstanding. Sprouts Farmers Market, Inc. (SFM) stock has lost -1.82 percent of market value in 21 trading days.

Analysts at Buckingham Research, assumed coverage of Sprouts Farmers Market, Inc. (NASDAQ:SFM) with Neutral recommendation, according to their opinion released on February 08. BofA/Merrill analysts again handed out a Underperform rating to SFM stock but they lifted target price for the shares in a flash note to investors on November 30. The price target has been raised from $35 to $21. BofA/Merrill, analysts launched coverage of SFM stock with a Underperform rating, according to their flash note to investors on November 30. Analysts at BofA/Merrill downgraded the stock to a Underperform call from its previous Buy stance, in a research note that dated back to November 30.

SFM stock has a trailing 3-year beta of 0.52, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.27 a share in the trailing twelve months. The stock’s value has surged 0.81 percent year to date (YTD) against a decline of -9.02 percent in 12 month’s time. The company’s shares still trade -20.12 percent away from its 1-year high of $29.67 and 14.88 percent up from 52-week low of $20.63. The average consensus rating on the company is 2.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Sprouts Farmers Market, Inc. (SFM) are trading at a P/E ratio of 18.54 times earnings reported for the past 12 months. The industry SFM operates in has an average P/E of 40.66. Its P/E ratio went as low as 22.78X and as high as 103.99 over the 5-year span. Further, it is sporting a 0.6 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.31. 29 percent is the gross profit margin for Sprouts Farmers Market, Inc. and operating margin sits at 4.5 percent. Along with this, the net profit margin is 3.7 percent.

SFM will be declaring its Q4 financial results on February 21. Analysts are forecasting revenue to climb 10.3 percent to $1.26B in the next fiscal quarter, while earnings are seen soaring by nearly 12.5 percent to $0.18 per share. History has shown that shares in Sprouts Farmers Market, Inc. have gone down on 12 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.27 per share, better than the $0.26, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.33B, in line with the $1.33B analysts expected. Earnings are estimated to increase by 22 percent this year, 3.84 percent next year and continue to increase by 14.2 percent annually for the next 5 years.