Sweetgreen tends to make big post-earnings moves higher, and today is no different
Sweetgreen Inc (NYSE:SG) is near the top of the New York Stock Exchange (NYSE) today, last seen up 22.1% to trade at $32.09. While the health-centric, fast-casual restaurant reported a steeper-than-expected second-quarter loss, a revenue beat and increased same-store sales outlook is fueling the upside today.
In response, four brokerages hiked their price targets, the highest coming from Oppenheimer to $36 from $34. The stock is no stranger to outsized post-earnings moves, gapping higher 34% after in May and 28.4% in March. The shares were down 12.9% this quarter prior to today's breakout, and are now within striking distance of their June 7, two-year high of $36.72. This year, the equity is up 192%.
A short squeeze could power SG to those multi-year highs. Short interest increased 13% in the two most recent reporting periods, and the 12.58 million shares sold short accounts for 12.9% of the stock's total available float. At SG's average pace of trading, it would take shorts four trading days to buy back their bearish bets.
The stock's usually-quiet options pits have come to life today. At last check, 15,000 contracts have exchanged hands, volume that's running six times the average intraday amount. The most popular is the August 30 call, followed by the 33 call in that same series.