Bearing Point Capital Nearly Liquidates Its $5 Million Sprouts Farmers Market Stake: Should Investors Sell Too?
Key Points
The Sprouts Farmers Market position was reduced by 22,893 shares, a net value change of $4.7 million.
The sale represents a 0.6% change in 13F reportable assets under management.
Bearing Point Capital's post-trade holding: 17,133 shares valued at $1.9 million.
The stake now accounts for 0.3% of fund AUM, which places it outside the fund's top five holdings.
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On November 12, 2025, Bearing Point Capital, LLC disclosed a sale of 22,893 shares of Sprouts Farmers Market (NASDAQ:SFM), reducing its position by an estimated $4.7 million.
What happened
According to a filing with the Securities and Exchange Commission dated November 12, 2025, Bearing Point Capital sold 22,893 shares of Sprouts Farmers Market during the third quarter.
The position's value fell to $1.86 million from a level previously representing 1.2% of fund AUM.
Post-trade, SFM comprised 0.3% of the fund's $580.98 million in reportable assets.
What else to know
The firm's SFM holding decreased and now represents 0.32% of Bearing Point's 13F AUM after the sale.
Bearing Point Capital's top holdings as of quarter-end:
- Nvidia (NASDAQ:NVDA): $35.5 million (6.1% of AUM)
- Apple (NASDAQ:AAPL): $23.5 million (4.1% of AUM)
- Microsoft (NASDAQ:MSFT): $18.3 million (3.1% of AUM)
- Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG): $15.6 million (2.7% of AUM)
- Broadcom (NASDAQ:AVGO): $14.9 million (2.6% of AUM)
As of November 11, 2025, shares of Sprouts Farmers Market were priced at $78.02, down 47% over the past year, underperforming the S&P 500 by 60 percentage points.
Sprouts has grown sales by 6.5% annually over the last five years.
The company's shares remain 56% below their 52-week high.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $8.65 billion |
| Net income (TTM) | $513.45 million |
| Price (as of market close November 11, 2025) | $78.02 |
| One-year price change | (47%) |
Company snapshot
Sprouts Farmers Market:
- Offers fresh, natural, and organic food products, including produce, meat, seafood, bakery, vitamins, and health-related items.
- Operates a grocery retail model, generating revenue through in-store sales across a broad assortment of perishable and non-perishable categories.
- Targets health-conscious consumers in the United States, with a focus on individuals seeking natural and organic food options.
Sprouts Farmers Market is a leading U.S. specialty grocery retailer, operating hundreds of stores across 23 states.
The company differentiates itself through a focus on fresh, natural, and organic products, appealing to a growing segment of health-oriented shoppers.
Its scale and curated product mix position it competitively within the consumer defensive sector.
Foolish take
Bearing Point Capital opened its position in Sprouts Farmers Market during the second quarter of 2025 at an average price of $165 per share.
Just one quarter later, the firm sold over half of its Sprouts shares at an average price of $109, taking a pretty hefty loss on its transactions.
While it's impossible to tell what exactly Bearing Point's reasoning for the quick change of heart is, Sprouts looks like an interesting "buy-the-dip" opportunity, in my Foolish opinion.
From the start of 2024 to early 2025, Sprouts' share price went from roughly $50 per share to $180. Similarly, its P/E ratio went from around 20 to nearly 50.
Following its recent 50% plunge from this all-time high share price, however, Sprouts is back to trading at a relatively cheap 16 times earnings.
Despite what this drop would imply, Sprouts just grew revenue, same-store sales, and earnings per share by 13%, 6%, and 34% in its latest quarter.
Sprouts is far from a "broken" stock.
Armed with consistent free cash flows, a new $1 billion share repurchase plan (versus a market cap of only $8 billion), and a tailwind from customers looking for healthier food options working in its favor, Sprouts Farmers Market looks like an exceptional "buy-the-dip" investment at today's reasonable valuation.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the Securities and Exchange Commission (SEC) on Form 13F.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Net position change: The difference in the number or value of shares held in a security after buying or selling.
Top holdings: The largest investments in the fund's portfolio, typically ranked by market value or portfolio weight.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Compound annual growth rate (CAGR): The annualized rate at which an investment grows over a specified period, assuming profits are reinvested.
Consumer defensive sector: Industry segment including companies that produce essential goods like food, beverages, and household products, less sensitive to economic cycles.
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Josh Kohn-Lindquist has positions in Alphabet, Nvidia, and Sprouts Farmers Market. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool recommends Broadcom and Sprouts Farmers Market and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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