Sprouts Farmers Market Inc. (NASDAQ:SFM) shares fell to a low of $20.13 before closing at $20.57. Intraday shares traded counted 1.92 million, which was 15.61% higher than its 30-day average trading volume of 2.28M. SFM’s previous close was $20.29 while the outstanding shares total 117.95M. The firm has a beta of 0.29, a 12-month trailing P/E ratio of 9.69, and a growth ratio of 0.72. The stock’s Relative Strength Index (RSI) is 54.15, with weekly volatility at 2.00% and ATR at 0.57. The SFM stock’s 52-week price range has touched low of $13.00 and a $28.00 high. The stock traded higher over the last trading session, gaining 1.36% on 12/29/20.
Investors have identified the Grocery Stores company Sprouts Farmers Market Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.45 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Sprouts Farmers Market Inc. (SFM) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 437.98 million total, with 509.58 million as their total liabilities.
SFM were able to record 314.39 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 52.26 million. In cash movements, the company had a total of 410.26 million as operating cash flow.
Potential earnings growth for Sprouts Farmers Market Inc. (SFM)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Sprouts Farmers Market Inc. recorded a total of 1.58 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 8.71% coming in sequential stages and their sales for the Q3 2020 quarter reducing by -4.13%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 992.83 million trying to sell their products during the last quarter, with the result yielding a gross income of 584.77 million. This allows shareholders to hold on to 117.95M with the recently reported earning now reading 0.51 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.52 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.77 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on SFM sounds very interesting.
Is the stock of SFM attractive?
In related news, Director, Blum Kristen E bought 2,750 shares of the company’s stock in a transaction that recorded on Nov 02. The purchase was performed at an average price of 18.50, for a total value of 50,875. As the purchase deal closes, the Director, Fortunato Joe now bought 13,000 shares of the company’s stock, valued at 244,366. Also, Director, Anderson Joel D bought 5,000 shares of the company’s stock in a deal that was recorded on Aug 11. The shares were cost at an average price of 23.95 per share, with a total market value of 119,750. Following this completion of disposal, the Chief Executive Officer, Sinclair Jack now holds 26,194 shares of the company’s stock, valued at 615,821. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
4 out of 20 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on Sprouts Farmers Market Inc.. 3 analysts has assigned a Sell rating on the SFM stock. The 12-month mean consensus price target for the company’s shares has been set at $24.63.