Sprouts Farmers Market Inc. (NASDAQ:SFM) shares traded lower over the last trading session, losing -1.04% on 06/09/21. The shares fell to a low of $27.63 before closing at $27.67. Intraday shares traded counted 1.48 million, which was 36.51% higher than its 30-day average trading volume of 2.33M. SFM’s previous close was $27.96 while the outstanding shares total 118.04M. The firm has a beta of 0.25, a 12-month trailing P/E ratio of 11.76, and a growth ratio of 0.97. The stock’s Relative Strength Index (RSI) is 62.54, with weekly volatility at 1.94% and ATR at 0.70. The SFM stock’s 52-week price range has touched low of $18.21 and a $28.63 high.
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 $3.27 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 577.33 million total, with 490.37 million as their total liabilities.
SFM were able to record 88.83 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by 86.34 million. In cash movements, the company had a total of 105.44 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 08/05/2021 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 -4.51% coming in sequential stages and their sales for the 08/05/2021 quarter reducing by -1.67%.
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 989.27 million trying to sell their products during the last quarter, with the result yielding a gross income of 586.17 million. This allows shareholders to hold on to 118.04M with the recently reported earning now reading 0.70 cents per share. This is a figure that compared to analystâ€™s prediction for their 08/05/2021 (0.70 cents a share).
Having a look at the companyâ€™s valuation, the company is expected to record 2.11 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, SVP, Chief Marketing Officer, Phipps Gilliam sold 2,364 shares of the companyâ€™s stock in a transaction that recorded on May 13. The sale was performed at an average price of 25.72, for a total value of 60,802. As the sale deal closes, the Chief Executive Officer, Sinclair Jack now sold 7,557 shares of the companyâ€™s stock, valued at 175,096. Also, VP, Controller, Hilgendorf Stacy W. sold 419 shares of the companyâ€™s stock in a deal that was recorded on Mar 10. The shares were price at an average price of 23.17 per share, with a total market value of 9,708. Following this completion of acquisition, the Chief Financial Officer, Paulonis Denise now holds 8,359 shares of the companyâ€™s stock, valued at 193,678. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.
4 out of 21 analysts covering the stock have rated it a Buy, while 11 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 companyâ€™s shares has been set at $27.47.