Sweetgreen, Inc. (NYSE:SG) CEO Jonathan Neman recently sold a significant portion of his holdings in the company, according to a recent SEC filing. On November 6, Neman sold 37,687 shares of Sweetgreen's Class A common stock at an average price of $40.03 per share, totaling approximately $1.5 million. These sales were executed under a pre-established 10b5-1 trading plan.
In addition to the sales, Neman acquired 20,937 shares through stock option exercises at a price of $0.96 per share, further adjusting his holdings. Following these transactions, Neman continues to hold a substantial number of shares, both directly and indirectly, through various trusts.
This activity reflects Neman's ongoing management of his equity stake in Sweetgreen, as the company continues to navigate the competitive landscape of the fast-casual restaurant industry.
In other recent news, Sweetgreen Inc. has been making notable strides. The company maintained its Buy rating from TD Cowen, which highlighted the financial benefits of Sweetgreen's Infinite Kitchen initiative. The initiative is expected to yield a 56% cash-on-cash return on capital expenditures and contribute to a 70-130 basis points increase in the net annual EBIT margin.
Sweetgreen also reported a 21% increase in revenue to $184.6 million in its second quarter and announced plans to open 24 to 26 new restaurants in 2024, more than half of which will feature an Infinite Kitchen. The company projects a revenue range of $670 million to $680 million and an adjusted EBITDA between $16 million and $19 million for fiscal year 2024.
Additionally, Sweetgreen has appointed Christopher Tarrant as Senior Vice President and Chief Development Officer. The company has also received various analyst updates. TD Cowen upgraded Sweetgreen's stock from Hold to Buy, citing potential strength in 2024 and beyond due to the Infinite Kitchens initiative. However, Piper Sandler downgraded the stock from Overweight to Neutral, while Oppenheimer increased its price target to $40.00, reflecting optimism about the company's growth prospects. These are some of the recent developments shaping Sweetgreen's trajectory.
InvestingPro Insights
Sweetgreen's recent stock performance aligns with CEO Jonathan Neman's decision to sell a portion of his holdings. According to InvestingPro data, the company has seen a significant return over the last week, with a 16.9% price increase. This short-term gain is part of a broader trend, as Sweetgreen has experienced a remarkable 327.99% price return over the past year.
The stock's current trading price of $41.64 is near its 52-week high, with the price at 98.67% of its peak. This strong performance may have influenced Neman's decision to sell, potentially capitalizing on the stock's upward momentum.
However, investors should note that Sweetgreen operates with some financial challenges. An InvestingPro Tip indicates that the company is not expected to be profitable this year, which is reflected in its negative P/E ratio of -57.84 for the last twelve months as of Q2 2023. Despite this, Sweetgreen has shown revenue growth of 24.75% over the same period, suggesting ongoing business expansion.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Sweetgreen, providing a more comprehensive view of the company's financial health and market position.
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