Nicolas Jammet, Chief Concept Officer of Sweetgreen, Inc. (NYSE:SG), has sold shares amounting to approximately $1.5 million, according to a recent SEC filing. The transactions, dated November 6, 2024, involved the sale of 37,688 shares of Class A Common Stock at an average price of $40.04 per share.
The filing also reported that Jammet acquired 20,937 shares through the exercise of stock options at a price of $0.96 per share. These transactions were part of a pre-arranged 10b5-1 trading plan established on June 10, 2024.
Following these transactions, Jammet holds a substantial number of shares, including those subject to restricted stock units that vest over time, reflecting his continued investment in the company.
In other recent news, Sweetgreen has reported a 21% increase in year-over-year revenue, reaching $184.6 million in its second quarter. The company has also appointed Christopher Tarrant as Senior Vice President and Chief Development Officer, with plans to open 24 to 26 new restaurants in 2024, more than half of which will feature an Infinite Kitchen. Sweetgreen's revenue range for fiscal year 2024 is projected to be between $670 million to $680 million, with an adjusted EBITDA between $16 million and $19 million.
TD Cowen has maintained its Buy rating for Sweetgreen and set a price target at $43.00, highlighting the financial benefits of the company's Infinite Kitchen initiative. The firm suggests that the initiative could 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.
However, Piper Sandler has downgraded Sweetgreen's stock from Overweight to Neutral, setting a new price target at $39.00. Oppenheimer, on the other hand, has increased its price target for Sweetgreen to $40.00, reflecting optimism about the company's growth prospects. These recent developments indicate varying perspectives on Sweetgreen's potential growth, particularly regarding the impact of the Infinite Kitchens initiative and the company's expansion plans.
InvestingPro Insights
Nicolas Jammet's recent stock sale at Sweetgreen, Inc. (NYSE:SG) comes at a time when the company's stock is experiencing significant momentum. According to InvestingPro data, Sweetgreen has seen a remarkable 327.99% price total return over the past year, with a 21.09% increase in the last month alone. This strong performance has pushed the stock to trade near its 52-week high, with the current price at 98.67% of that peak.
The timing of Jammet's sale aligns with Sweetgreen's robust revenue growth. InvestingPro data shows a 24.75% revenue growth over the last twelve months, with quarterly revenue growth at 21.06%. This growth trajectory supports the InvestingPro Tip that the stock is trading at a high revenue valuation multiple.
Despite the positive stock performance, it's worth noting that Sweetgreen is not currently profitable. An InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year, which is reflected in the negative P/E ratio of -57.84 for the last twelve months. This financial situation underscores the importance of monitoring insider transactions and company performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Sweetgreen, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.