Lawrence Molloy will replace Denise Paulonis as CFO later this month
Sprouts Farmers Market Inc (NASDAQ:SFM) last night announced Lawrence Molloy as its latest Chief Financial Officer (CFO), replacing Denise Paulonis. Molloy will become CFO on Saturday, Sept. 25, and step down from the company's board in the transition.
The stock is slightly lower this morning in response, last seen off 0.4% at $24.80. The equity has been middling since mid-July, consolidating below the $25.50 level, while the 40-day moving average has also acted as a ceiling since June. The security is up 23.9% in 2021, and Sprout Farmers Market stock looks to have found support at its 200-day moving average.
Short interest has been falling, down 6.8% in the last two reporting periods, but the 19.08 million shares sold short still make up a solid 16.8% of the stock's available float, and would take almost nine days to cover at its average daily pace of trading. This could put some additional wind at SFM's back, should these bears keep hitting the exits.
Analyst sentiment, meanwhile, has been lukewarm at best, which could lead to some upgrades down the road. Of the six in coverage, five consider it a "hold" or worse, compared to just one "strong buy" rating. Meanwhile, the 12-month consensus price target of $26.50 is a slim 6.4% premium to last night's close.