Why Sweetgreen Stock Plunged 31% Last Month
Shares of salad restaurant chain Sweetgreen (NYSE: SG) plunged 30.9% in February, according to data provided by S&P Global Market Intelligence. The company did report financial results for the fourth quarter of 2024 during the month, but that report didn't come until Feb. 26. Sweetgreen stock was already down by about 30% by then, meaning the report wasn't the problem per se.
Perhaps some commentary from analysts can help explain what was going on with Sweetgreen stock in February. On Feb. 11, analysts at Citi lowered its price target for Sweetgreen from $49 per share to $43 per share, according to The Fly. The analysts basically said that an expensive stock and slowing sales growth don't mix, leading them to lower expectations ahead of the Q4 report.
This appears to have been the general investor sentiment for Sweetgreen stock in February -- worried that it was getting too expensive and would soon drop. With analysts, such as those from Citi, supporting this belief, the sell-off with Sweetgreen stock seemed to pick up steam.
Source Fool.com
