A supplier of fresh foods, organic and natural food products, Sprouts Farmers Markets Inc. (SFM: US) has come a long way since its founding in 2002. In a year where many stocks were recuperating from the COVID-19 effects, Sprouts went further and opened 12 new stores in the USA.
A report on March 6, 2022, stated that Sprouts Farmers Markets Inc. (SFM: US) is currently one of the most sought-after stocks in the American market. Since the beginning of 2022, the stock has risen by nearly 12.83%.
Now, a new initiative by the company has kicked $SFM even higher.
Down the Repurchase Road
On March 2, 2022, the Board of Directors at Sprouts Farmers Markets Inc. (SFM: US)announced a program to buy back their existing shares. The company intends to purchase $600 million worth of shares, with the program giving an expiry dated December 31, 2024.
For most private investors indulging in stocks, a buyback scheme rings with green signals throughout. This was certainly the case with $SFM. The stock price started at $29.63 on March 3, 2022, and closed at $31.44 the same day. Now, it has climbed up to $33.59. This marked a percentage rise of almost 13.36%.
This soaring of the retail stock is remarkable especially when the company’s last announcement was less than a favorable one. Divulged on February 24, 2022, 2021 Q4’s net sales were a 7% decline compared to the same period in 2020. For the fiscal year 2021, a net income of $244 million was reported; considerably lower when compared to 2020’s adjusted net income of $294 million.
With this perspective and the recent price surge of $SFM, the company has made a rather remarkable turnaround.
The company is appearing resilient in the midst of rising inflation and has made announcements to open more stores in the United States, promising an even more eventful coming year.