Sprouts Farmers Market Faces Securities Fraud Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: PRnewswire
- Lawsuit Background: Sprouts Farmers Market, Inc. (SFM) is facing a securities fraud class action lawsuit for failing to disclose the vulnerability of its customer base to macroeconomic conditions, resulting in investor losses between June 4 and October 29, 2025.
- Sales Growth Slowdown: The lawsuit alleges that Sprouts' sales growth did not meet expectations, as the shift in consumer spending from dining out to eating at home failed to provide a meaningful boost, leading to significant sales slowdown for the company.
- Misleading Statements: The defendants' positive statements are claimed to lack a reasonable basis and do not accurately reflect the company's operational status, potentially misleading investors regarding the company's prospects.
- Investor Action Opportunity: Affected investors must act before January 26, 2026, to participate in the class action lawsuit, thereby protecting their rights and seeking compensation for their losses.
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: 74.730
Low
90.00
Averages
120.82
High
160.00
Current: 74.730
Low
90.00
Averages
120.82
High
160.00
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
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.
