Sprouts Farmers Market authorizes new $1 billion share buyback

PHOENIX - Sprouts Farmers Market, Inc. (NASDAQ:SFM), currently valued at $14.1 billion, announced on Tuesday that its Board of Directors has authorized a new $1 billion share repurchase program, replacing its current authorization which had approximately $143 million remaining. According to InvestingPro data, management has been consistently aggressive with share buybacks, supported by the company’s robust financial health score of 2.92 out of 5.

The specialty grocery retailer said the new buyback program was approved on August 13, 2025, and will allow the company to purchase shares on a discretionary basis through open market purchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans.

The program has no expiration date and may be commenced, suspended, or discontinued at any time, according to the company. Sprouts noted that its Board expects to periodically review the authorization to assess its continued appropriateness based on capital allocation priorities, market conditions, and alternative investment opportunities.

"Our ongoing share repurchase program reflects our robust cash flow generation and our Board’s confidence in our strategy and the potential of our business," said Curtis Valentine, chief financial officer of Sprouts Farmers Market.

Valentine added that the company is committed to delivering long-term value for investors by prioritizing investments for business growth while returning excess free cash flow to shareholders through the ongoing repurchase program.

Sprouts Farmers Market operates more than 450 stores across 24 states and employs approximately 35,000 people. The company specializes in fresh, natural, and organic food products.

The announcement was made in a press release statement issued by the company.

In other recent news, Sprouts Farmers Market reported impressive second-quarter 2025 results, surpassing analysts’ expectations. The company achieved an earnings per share of $1.35, beating the forecasted $1.23, and generated revenue of $2.2 billion, exceeding the anticipated $2.17 billion. UBS adjusted its price target for Sprouts Farmers Market to $180.00, citing supply chain impacts but maintaining a Neutral rating. Meanwhile, Wells Fargo upgraded the company’s stock rating from Equal Weight to Overweight, viewing recent stock pullbacks as buying opportunities. Barclays also upgraded Sprouts Farmers Market to Overweight, raising its price target to $185.00, highlighting the company’s steady growth outlook and incremental sales drivers. On the other hand, BMO Capital lowered its price target to $170.00, maintaining a Market Perform rating due to expected deceleration in comparable store sales growth. These developments reflect a mix of optimism and caution among analysts regarding Sprouts Farmers Market’s future performance.

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