Sprouts Farmers Market Faces Securities Class Action with 26.11% Share Drop
Written by Emily J. Thompson, Senior Investment Analyst
Source: PRnewswire
Updated: 58 minutes ago0mins
- Lawsuit Notification: Kahn Swick & Foti LLC alerts investors who purchased Sprouts shares between June 4, 2025, and October 29, 2025, that they must file lead plaintiff applications by January 26, 2026, to participate in the securities class action against the company.
- Stock Price Plunge: Following the release of its third-quarter results on October 29, 2025, Sprouts' stock price plummeted from $104.55 to $77.25 per share, marking a significant 26.11% drop in just one day, indicating severe market concerns regarding the company's future performance.
- Disappointing Performance: The company reported comparable store sales growth below expectations and lowered its fourth-quarter guidance along with full-year estimates, revealing signs of softening consumer demand that could adversely affect its long-term profitability.
- Legal Implications: The lawsuit alleges that Sprouts and certain executives failed to disclose material information during the class period, violating federal securities laws, which could expose the company to greater legal and financial risks.
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Analyst Views on SFM
Wall Street analysts forecast SFM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SFM is 120.82 USD with a low forecast of 90.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 85.250
Low
90.00
Averages
120.82
High
160.00
Current: 85.250
Low
90.00
Averages
120.82
High
160.00
Goldman Sachs
Leah Jordan
Buy
downgrade
$178 -> $152
2025-10-31
Reason
Goldman Sachs
Leah Jordan
Price Target
$178 -> $152
2025-10-31
downgrade
Buy
Reason
Goldman Sachs analyst Leah Jordan lowered the firm's price target on Sprouts Farmers Market to $152 from $178 and keeps a Buy rating on the shares.
Goldman Sachs
Leah Jordan
Buy
downgrade
$178 -> $152
2025-10-30
Reason
Goldman Sachs
Leah Jordan
Price Target
$178 -> $152
2025-10-30
downgrade
Buy
Reason
Goldman Sachs analyst Leah Jordan lowered the firm's price target on Sprouts Farmers Market to $152 from $178 and keeps a Buy rating on the shares. The firm expects shares to trade lower following the Q3 report given the lower Q4 outlook and comp miss, but notes continued strength in profitability and EPS growth, the analyst tells investors in a research note.
Roth Capital
Bill Kirk
Neutral
downgrade
$155 -> $91
2025-10-30
Reason
Roth Capital
Bill Kirk
Price Target
$155 -> $91
2025-10-30
downgrade
Neutral
Reason
Roth Capital analyst Bill Kirk lowered the firm's price target on Sprouts Farmers Market to $91 from $155 and keeps a Neutral rating on the shares. Sprouts' Q3 was a comp store sales miss and earnings beat, while its Q4 guidance calls for continued y/y comp deceleration and earnings below consensus expectations, the analyst tells investors in a research note. Deceleration was quicker than expected, though the two-year trends have stabilized, the firm added.
JPMorgan
Neutral
downgrade
$124 -> $91
2025-10-30
Reason
JPMorgan
Price Target
$124 -> $91
2025-10-30
downgrade
Neutral
Reason
JPMorgan lowered the firm's price target on Sprouts Farmers Market to $91 from $124 and keeps a Neutral rating on the shares. The company is facing tougher compares and a weaker consumer environment, the analyst tells investors in a research note.
See All Ratings
About SFM
Sprouts Farmers Market, Inc. is a specialty natural and organic food retailer. The Company brings products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. The Company categorizes the varieties of products it sells as perishable and non-perishable. Its perishable product categories include produce, meat and meat alternatives, seafood, deli, bakery, floral and dairy and dairy alternatives. Its produce products include fruits; vegetables; toppings, refrigerated dressings & dips; miscellaneous produce, and floral. Its non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. Its beer & wine products include red wine, white wine, rose & blush, champagne & sparkling, beer, non-alcoholic, and sweet wines. Its target customer is comprised of two specific groups: health enthusiasts and selective shoppers. It operates more than 440 stores in 24 states nationwide.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Will Sprouts Farmers Market recover from the financial and legal setbacks?