Sweetgreen director Neil Blumenthal sells $842,236 in stock By Investing.com
Neil Blumenthal, director at Sweetgreen, Inc. (NYSE:SG), recently sold most of his holdings in the company. According to a filing with the Securities and Exchange Commission, Blumenthal disposed of 22,220 shares of Class A Common Stock on November 20. The shares were traded at prices ranging from $37.10 to $38.78, resulting in a total transaction of approximately $842,236.
Following this sale, Blumenthal retains ownership of 90,417 shares in the company. This transaction is part of a series of sales in which 15,337 shares were sold at an average price of $37.70, and an additional 6,883 shares were sold at an average price of $38.36.
Sweetgreen, known for its focus on healthy and sustainable food choices, has become a notable player in the retail space. Investors may find these transactions profitable as they reflect the trading activities of an important person within the company.
In other recent news, Sweetgreen Incorporated reported significant growth and strategic expansion during its 2024 Third Quarter Earnings Call. The company highlighted a 13% year-over-year increase in sales, to $173.4 million, and a 6% increase in same-store sales. Sweetgreen also reported a decline in its net loss to $20.8 million from $25.1 million year over year.
The company also announced the opening of five new restaurants in Q3, bringing the total to 236 locations. Sweetgreen plans to launch at least 40 new restaurants by FY 2025, half of which will incorporate the new Infinite Kitchen technology.
In a recent development, TD Cowen maintained Sweetgreen Inc’s buy rating and target price of $45.00. The firm expressed confidence in Sweetgreen’s growth strategy and the potential of its Infinite Kitchen concept. This endorsement led to Sweetgreen’s rise to #2 choice by analysts, indicating strong belief in the company’s performance potential.
Despite a slight increase in general and administrative expenses to $36.8 million, Sweetgreen raised its fiscal 2024 guidance, projecting revenue between $675 million to $680 million and same-store sales growth of 6% to 7% . These developments reflect Sweetgreen’s continued commitment to growth and strategic expansion.
InvestingPro Insights
Sweetgreen’s recent stock performance and financial metrics provide more context to Director Neil Blumenthal’s recent stock sale. According to InvestingPro data, Sweetgreen had a significant return in the last week, with a price increase of 23.1%. This short-term growth is part of a broader trend, as the stock has seen an impressive 331.94% return over the past year.
Despite these positive gains, InvestingPro Tips indicates that Sweetgreen’s stock price movements are volatile. This volatility may explain why insiders like Blumenthal are choosing to sell some of their holdings, perhaps offsetting gains during a period of strong performance.
It is worth noting that while the company’s revenue has grown by 21.72% over the past twelve months, Sweetgreen is currently unprofitable. InvestingPro Tip suggests that analysts do not expect the company to be profitable this year. This context adds importance to the company’s strong market performance, as it trades at a high revenue rate despite a lack of profitability.
For investors looking for a more comprehensive analysis, InvestingPro offers 12 additional Sweetgreen tips, which provide a deeper understanding of the company’s financial health and market conditions.
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