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Promethos Capital Liquidates $4 Million Sprouts Farmers Market Position: Should Investors Sell, Too?
Yahoo Finance· 2026-02-16 17:54
Core Insights - Promethos Capital has sold its entire holding of 34,935 shares in Sprouts Farmers Market for approximately $3.80 million, reflecting a significant decline in the fund's position value [1][2] Company Overview - Sprouts Farmers Market is a leading U.S. grocery retailer specializing in fresh, natural, and organic foods, operating 464 stores across 24 states [5] - The company reported a total revenue of $8.65 billion and a net income of $513.45 million for the trailing twelve months (TTM) [4] - As of February 13, 2026, the market capitalization of Sprouts Farmers Market was $6.71 billion, with shares trading at $68.96, down 60.9% over the past year [3][4] Financial Performance - Sprouts Farmers Market's share price has significantly underperformed, lagging the S&P 500 by 73 percentage points [3] - The company's stock price has seen a drastic decline of 53% over the last six months, following a period of growth where shares were previously valued over $160 [9] Investment Context - Promethos Capital originally purchased shares at around $48 in Q4 2023 and had previously increased its holdings before selling [9] - The current valuation of Sprouts Farmers Market is considered attractive, trading at 13 times earnings and 15 times free cash flow, despite ongoing capital expenditures for new store growth [10] - The company is actively expanding into nine new states and aims to reach 1,400 locations in the long term [10]