Harbor Capital Sells Off 97K SFM Shares Worth $141 Million Amid Losses

HARBOR CAPITAL ADVISORS, INC. cut its stake in Sprouts Farmers Market (SFM), selling an estimated $14 million based on average prices for Q3 2025, according to its SEC filing.

What happened

According to a filing with the U.S. Securities and Exchange Commission dated October 15, 2025, HARBOR CAPITAL ADVISORS, INC. reduced its position in Sprouts Farmers Market(NASDAQ:SFM)by 97,168 shares. The transaction was valued at an estimated $14 million based on the average share price for the quarter. After the sale, the fund held 30,418 shares valued at around $3.3 million as of September 30, 2025.

What else to know

The sale reduced the position to about 0.3% of the fund’s $1.29 billion AUM. Previously, the position represented 0.9% of the fund's AUM as of Q2 2025.

Top holdings after the filing:

• IVV: $49.1 million (3.8% of AUM)
• EEM: $38.4 million (3% of AUM)
• EFA: $28.3 million (2.2% of AUM)
• NVDA: $27.2 million (2.1% of AUM)
• GOOGL: $26.5 million (2.1% of AUM)

As of October 16, 2025, SFM shares were priced at $111.55, down 12.2% YTD, underperforming the S&P 500 by about 24.9 percentage points.

Company Overview

Company Snapshot

• Offers a wide range of fresh produce, meat, seafood, bakery, deli, dairy, and natural/organic grocery items, along with vitamins, supplements, and health products.
• Operates a network of retail grocery stores in the United States, generating revenue primarily through direct consumer sales of food and wellness products.

Foolish take

HARBOR CAPITAL ADVISORS, INC. recently decided to trim its stake in Sprouts Farmers Market. This comes as the specialty grocer is having a tough year in 2025, with shares down over 12% year-to-date and lagging the S&P 500 by almost 25 percentage points. Investors seem to be a bit cautious about how fast the natural foods market is growing. While Sprouts is still benefiting from strong consumer demand for fresh and organic products, rising food costs and increased competition from traditional grocers and big-box retailers have put pressure on its profit margins.

The sale has reduced Sprouts to a smaller portion of the fund’s portfolio, which could signal a possible shift towards broader or faster-growing holdings like NVIDIA and Alphabet. However, Sprouts' focus on health-conscious shoppers and its efficient, small-format stores give it a good chance of staying strong in a crowded market. Long-term investors who believe in the shift towards fresh and local products might see today's weakness as a buying opportunity.

Glossary

AUM: Assets Under Management – The total market value of investments managed by a fund or firm.
Top holdings: The largest individual investments within a fund, often representing its main exposures.
TTM: The 12-month period ending with the most recent quarterly report.
Reportable U.S. equity assets: U.S. stocks and related investments that a fund must disclose in regulatory filings.
Filing: An official document submitted to a regulatory agency, often containing financial or ownership information.
Q3: The third quarter of a company's or fund's fiscal year, typically covering July through September.

Adam Palasciano has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool recommends Sprouts Farmers Market. The Motley Fool has a disclosure policy.