PENN DAVIS MCFARLAND Loads Up On Sprouts Farmers Market Stock With 51,000 Shares Bought
Key Points
Added 51,516 shares of Sprouts Farmers Market; estimated trade size $4.62 million based on quarterly average pricing.
Quarter-end position value decreased by $915,227, a figure reflecting both trading activity and share price movement.
Transaction value represented a 0.44% change in 13F reportable assets under management.
Post-trade stake is 223,830 shares, valued at $17.83 million.
Position now accounts for 1.71% of fund AUM, which places it outside the fund's top five holdings.
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PENN DAVIS MCFARLAND INC disclosed a buy of 51,516 Sprouts Farmers Market (NASDAQ: SFM) shares, according to an SEC filing.(NASDAQ:SFM) shares in its January 16, 2026 SEC filing.
What happened
PENN DAVIS MCFARLAND INC reported to the Securities and Exchange Commission (SEC filing) that it increased its position in Sprouts Farmers Market by 51,516 shares during the fourth quarter of 2025. The estimated value of these purchases was $4.62 million, based on the average closing price for the quarter. The quarter-end value of the position, reflecting both the additional shares and changes in share price, decreased by $915,227 to $17.83 million.
What else to know
- This buy brought the stake to 1.71% of PENN DAVIS MCFARLAND INC’s 13F reportable assets under management as of December 31, 2025.
- Top holdings after the filing:
- NASDAQ: GOOGL: $198.71 million (19.5% of AUM)
- NASDAQ: NVDA: $93.26 million (9.1% of AUM)
- NASDAQ: AAPL: $49.45 million (4.8% of AUM)
- NYSE: KMI: $47.43 million (4.5% of AUM)
- NYSE: UNH: $45.34 million (4.3% of AUM)
- As of January 15, 2026, shares of Sprouts Farmers Market were priced at $81.51, up 62.6% over the prior year, overperforming the S&P 500 by 45.9 percentage points.
- Trailing twelve months revenue was $8.65 billion; net income was $513.45 million; five-year revenue CAGR was 6.5%.
- The position was previously 1.9% of the fund’s AUM as of the prior quarter.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $8.65 billion |
| Net Income (TTM) | $513.45 million |
| Price (as of market close 1/15/26) | $81.51 |
| One-Year Price Change | 62.60% |
Company Snapshot
- Offers fresh produce, meat, seafood, bakery, dairy, vitamins, supplements, and natural health products, with revenue primarily from in-store grocery sales.
- Operates a network of stores across the United States, generating income through direct retail sales of natural and organic food products.
- Targets health-conscious consumers seeking natural, organic, and specialty grocery products, with a focus on value and freshness.
Sprouts Farmers Market, Inc. is a leading U.S. grocery retailer specializing in fresh, natural, and organic foods. The company leverages a differentiated product assortment and a store model focused on health and value to attract a growing base of health-oriented shoppers. Its broad footprint and focus on perishables position it to compete effectively in the consumer defensive sector.
What this transaction means for investors
PENN DAVIS MCFARLAND’s interest in Sprouts Farmers Market stock may not come as a surprise when looking more closely at both the fund and its holdings. Even though most of its top holdings are tech, the fund’s 75 stocks, consumer stocks like Sprouts make up a significant portion of the company’s holdings.
Moreover, Sprouts has stood out in the grocery business by fostering a competitive advantage that differentiates it from both traditional grocery stores and even stores more oriented to organic goods like Sprouts.
One significant difference is its rapid expansion. In the third quarter of 2025 alone, Sprouts’s footprint grew by 2%, a testament to the increasing popularity among consumers.
Additionally, the stock experienced a significant sell-off in the summer and early fall, and the closing price on January 15 was 55% below its 52-week high. Such conditions allow investors to buy at a considerable discount, and this holding could benefit PENN DAVIS over the long run.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Kinder Morgan, Nvidia, and Sprouts Farmers Market. The Motley Fool recommends UnitedHealth Group and recommends the following options: long January 2028 $75 calls on Sprouts Farmers Market and short January 2028 $85 calls on Sprouts Farmers Market. The Motley Fool has a disclosure policy.
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