Sprouts Farmers Market (NASDAQ:SFM) is engaged in the retail of natural and organic food in the United States.
Insider selling during the last 30 days
Here is a table of Sprouts Farmers Market's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Secondary Public Offering||Current Ownership||Decrease In Ownership|
|Apollo Management Holdings||10% Owner||April 2||9,408,458||Yes||45,633,699 shares||17.1%|
|George Golleher||Director||March 28||46,988||Yes||225,000 shares + 39,970 options||15.1%|
|Shon Boney||Insider||March 28||317,377||Yes||0 shares + 324,290 options||49.5%|
|Donna Berlinski||Controller||March 28||18,803||Yes||7,764 shares + 26,114 options||35.7%|
|Steve Black||CMO||March 28||24,597||Yes||2,442 shares + 61,341 options||27.8%|
|Brandon Lombardi||CLO||March 28||45,906||Yes||9,942 shares + 119,533 options||26.2%|
|Jim Nielsen||COO||March 28||95,213||Yes||7,659 shares + 65,204 options||56.6%|
|Amin Maredia||CFO||March 28||52,800||Yes||216,659 shares + 148,867 options||12.6%|
|Doug Sanders||CEO||March 28||384,022||Yes||135,449 shares + 337,854 options||44.8%|
There have been 10,394,164 shares sold by insiders during the last 30 days. All these shares were sold pursuant to a secondary public offering.
Insider selling by calendar month
Here is a table of Sprouts Farmers Market's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 21,653,940 shares sold, and there have been 427,300 shares purchased by insiders since August 2013. Sprouts Farmers Market had its IPO in August 2013.
Sprouts Farmers Market reported the full-year 2013 financial results on February 27 with the following highlights:
|Net income||$51.3 million|
The nine insiders sold their shares after these results.
Sprouts Farmers Market's first-quarter guidance is as follows:
|Net sales||~$720.0 million|
|Comparable store sales growth||~12.5%|
Sprouts Farmers Market's full-year 2014 guidance is as follows:
|Net sales growth||16%-18%|
|Comparable store sales growth||7%-8%|
On April 4, Sprouts Farmers Market announced that it is recalling Organic Black Peppercorns sold under the Sprouts brand name from all stores. This product has the potential to be contaminated with Salmonella, an organism that can cause serious and sometimes fatal infections in young children, the elderly, and others with weakened immune systems.
|Qtrly Rev Growth (yoy):||0.27||0.26||0.10|
|PEG (5 yr expected):||2.51||2.26||1.91|
Sprouts Farmers Market has the highest P/S ratio among these three companies.
Here is a table of these competitors' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Sprouts Farmers Market has seen intensive insider selling during the last 30 days.
There have been nine different insiders selling Sprouts Farmers Market, and there have not been any insiders buying Sprouts Farmers Market during the last 30 days. All nine of these insiders decreased their holdings by more than 10%. Sprouts Farmers Market has an insider ownership of 0.50%.
Sprouts Farmers Market has a $23 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $23 price target. I would place a stop loss at $40, which is the three-month high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, relatively high P/S ratio, and the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in SFM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.