Sprouts Farmers Market (SFM) Faces Class Action Lawsuit After 26.11% Stock Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Globenewswire
- Lawsuit Background: Bragar Eagel & Squire has filed a class action lawsuit against Sprouts Farmers Market, alleging that the company overstated its growth potential during fiscal year 2025, resulting in investor losses.
- Stock Price Plunge: Following disappointing Q3 results announced on October 29, 2025, Sprouts' stock price fell from $104.55 to $77.25 per share, a decline of 26.11%, reflecting market pessimism regarding the company's outlook.
- Investor Rights: Affected investors must apply by January 26, 2026, to be appointed as lead plaintiffs in the lawsuit, indicating that the legal risks faced by the company could impact future shareholder confidence.
- Market Reaction: Sprouts cited a slowdown in consumer spending leading to significant sales growth deceleration, which may further exacerbate market concerns about its future performance and affect the company's long-term strategic direction.
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: 81.510
Low
90.00
Averages
120.82
High
160.00
Current: 81.510
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.
