Sprouts Farmers Market Faces Securities Fraud Lawsuit After 26.1% Stock Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- Lawsuit Deadline: Investors must apply by January 26, 2026, to become lead plaintiffs in the securities fraud class action against Sprouts Farmers Market, involving trades from June 4 to October 29, 2025, highlighting serious investor concerns over the company's performance.
- Performance Decline: Sprouts reported a mere 5.9% comparable store sales growth for Q3 2025, significantly below prior guidance, resulting in a 26.1% stock drop to $77.25 per share on October 30, 2025, directly impacting investor confidence.
- Guidance Revision: The company revised its full-year comparable store sales growth forecast down to flat to 2%, indicating softening consumer demand and economic uncertainty, which exacerbates market concerns regarding Sprouts' future prospects.
- False Statements Allegation: The lawsuit alleges that Sprouts failed to disclose significant adverse facts about its business and operations during the class period, misleading investors and reflecting the company's vulnerability amid economic uncertainty.
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 114.33 USD with a low forecast of 77.00 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.
13 Analyst Rating
7 Buy
6 Hold
0 Sell
Moderate Buy
Current: 70.550
Low
77.00
Averages
114.33
High
160.00
Current: 70.550
Low
77.00
Averages
114.33
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.
