Arkfeld Wealth Loads Up on Sprouts Farmers Market (SFM), Buys Another $6 Million in Stock
Key Points
Arkfeld bought 67,977 shares of Sprouts Farmers Market; estimated trade size of approximately $6.10 million (based on quarterly average price).
The firm's quarter-end position value rose by $4.78 million, reflecting both new buying and price movement over the quarter.
The transaction value represented an approximate 2.1% change of Arkfeld's $290.90 million reportable AUM.
Post-trade stake: 77,590 shares valued at approximately $5.80 million (about 1.99% of fund AUM).
The position remains outside the fund's top five holdings as of the latest filing.
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On Jan. 12, 2026, Arkfeld Wealth Strategies, L.L.C. disclosed a purchase of 67,977 shares of Sprouts Farmers Market (NASDAQ:SFM), an estimated $6.10 million trade based on quarterly average pricing.
What happened
According to an SEC filing dated Jan. 12, 2026, Arkfeld Wealth Strategies, L.L.C. increased its investment in Sprouts Farmers Market by 67,977 shares during the fourth quarter. At quarter-end, the fund’s position in the company grew by $4.78 million, driven by both trading activity and market price changes.
What else to know
This was a buy, bringing the Sprouts Farmers Market stake to 1.99% of Arkfeld Wealth's reportable assets under management.
Top holdings after the filing:
- Berkshire Hathaway Class B: approximately $37.13 million (approximately 12.8% of AUM)
- Amazon: approximately $31.64 million (approximately 10.9% of AUM)
- Alphabet: approximately $21.41 million (approximately 7.4% of AUM)
- Apple: approximately $17.47 million (approximately 6.0% of AUM)
- HF Sinclair: approximately $12.26 million (approximately 4.2% of AUM)
As of Jan. 9, 2026, Sprouts Farmers Market shares were priced at $77.20, down approximately 42% over the past year, underperforming the S&P 500 by 62 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close Jan. 9, 2026) | $77.20 |
| Market Capitalization | $7.81 billion |
| Revenue (TTM) | $8.65 billion |
| Net Income (TTM) | $513.45 million |
Company snapshot
Sprouts Farmers Market:
- Offers fresh produce, meat, seafood, bakery, deli, dairy, vitamins, supplements, and natural health products, with a focus on natural and organic foods.
- Operates a network of grocery stores in the United States, generating revenue primarily from in-store retail sales of perishable and non-perishable food items.
- Targets health-conscious consumers seeking fresh, natural, and organic grocery options across 23 states.
Sprouts Farmers Market is a leading specialty grocery retailer with a national footprint, focusing on natural and organic product offerings. The company leverages a differentiated assortment and a value-driven approach to attract a broad base of health-oriented shoppers. Its scale and operational efficiency support a competitive position in the growing consumer defensive sector.
What this transaction means for investors
After holding approximately 10,000 shares of Sprouts Farmers Market for over two years, Arkfeld Wealth made a significant move, increasing the position sevenfold in the fourth quarter. What makes this massive purchase interesting is that it occurs following Sprouts' stock dropping 55% from its 52-week high. It seems Arkfeld views the up-and-coming, attribute-focused grocer as an intriguing growth stock -- and I'd tend to agree.
Yes, Sprouts' share price decline was severe. However, this was probably more a result of its valuation getting ahead of itself and now coming back to a more reasonable level. The stock was briefly trading above 40 times earnings in 2025, but is now available at just 16 times earnings again. Best yet, I'd argue that the stock's actual operations continue to run smoothly. Sales are up 13% over the last year, margins are expanding, and the company's private label products are gaining popularity.
With management hoping to triple its store count (from 464 today to 1,400 over the long term), I think Arkfeld is making a shrewd bet by buying Sprouts on the dip -- at least if it plans to hold for at least a few years, like I intend to. The cherry on top for investors? Sprouts has lowered its outstanding shares by 4.5% annually over the last decade through steady share buybacks, so its freshly discounted valuation could paradoxically be an opportunity for the company.
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Josh Kohn-Lindquist has positions in Alphabet and Sprouts Farmers Market. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, and Sprouts Farmers Market. The Motley Fool 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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