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Just caught that Promethos Capital completely dumped their Sprouts position - sold off 34,935 shares worth about $3.8M back in February. Interesting timing since the stock's been getting hammered (down 61% over the past year). They originally bought in around $48/share back in late 2023, so they clearly made solid gains before bailing.
Here's what's got me thinking though - the fund's exit doesn't necessarily mean it's time to panic sell. Sprouts is trading at like 13x earnings right now, which honestly seems pretty cheap for a company that's been growing sales and earnings double digits annually. They've got 464 stores across 24 states and are actively expanding into 9 new states with plans to hit 1,400 locations eventually. That's a real runway for growth.
The company's also doing interesting stuff with product innovation - introduced over 7,000 new items in 2024 and 70% of their products are attribute-driven (organic, non-GMO, gluten-free, etc). That's their moat against the big box grocers. Yeah, the stock's volatile and Promethos clearly got spooked, but if you're looking at the fundamentals, this doesn't feel like a "sell everything" moment to me. More like a setup for patient investors. What's your take - are you seeing this as a red flag or a potential entry point?