Sprouts & Penn Davis: What’s the Deal?

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So, Penn Davis McFarland – a name that just sounds like it should be handling precious metals, doesn’t it? – decided to buy a bunch of Sprouts Farmers Market stock. Fifty-one thousand shares. Fifty-one thousand! It’s…a choice. I mean, it’s not like they bought stock in a company that makes something. It’s…groceries. And organic ones, at that. The whole thing feels…performative. Like they’re trying to signal something. They dropped $4.62 million on this. You know what I could do with $4.62 million? I could finally get a decent noise-canceling headset. But no, let’s buy lettuce futures.

The Whole Situation

Apparently, this isn’t a new thing. They’ve been quietly accumulating Sprouts shares. It increased their position, sure, but the value of the whole thing actually went down by $915,227. Nine hundred and fifteen thousand dollars! You buy more shares and the value goes down? It’s like they’re deliberately trying to confuse everyone. I swear, these fund managers just do things to keep themselves entertained. It’s all a game to them. It’s 1.71% of their assets now, which, honestly, feels…arbitrary. Like they pulled that number out of a hat.

What They Actually Own

Let’s look at the big picture, because honestly, the Sprouts thing is just…distracting. They’re heavily into Google, which, okay, predictable. Then NVIDIA. Also predictable. Apple? Fine. But then you get to Kansas City Southern, and I just…I don’t get it. Railroads? In this day and age? It feels like they’re buying a time capsule. Here’s the breakdown, because you need a list to understand anything these days:

  • 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)

See? It’s all tech and…railroads. And now, organic kale. It’s a mess. A beautiful, financially baffling mess.

The Numbers, Because We Have To

Sprouts stock, as of January 15th, was at $81.51. Up 62.6% over the year. Which, fine. Good for them. But it was also 55% below its 52-week high. So, they’re buying low, allegedly. But what if it goes lower? What then? It’s a constant anxiety. Revenue was $8.65 billion, net income $513.45 million. Impressive, I guess. But does anyone actually understand these numbers? I suspect not. And the fund used to have 1.9% in Sprouts, now it’s 1.71%. It’s a downward spiral, I tell you! A downward spiral!

Sprouts: The Company, If You Must Know

They sell fruits, vegetables, meat, the usual. Vitamins, supplements, because apparently everyone needs more vitamins. They have stores. People go there. They buy things. It’s a grocery store. What more is there to say? They target “health-conscious consumers.” Which is code for “people who spend more money.” They’re competing with Whole Foods and…regular grocery stores. It’s a crowded market. A very crowded, organic market.

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%

So What Does It All Mean?

Honestly? I have no idea. Penn Davis McFarland probably has some complicated algorithm that justifies this whole thing. Some spreadsheet that says “Sprouts is undervalued.” But I suspect it’s just a hunch. A gut feeling. Like they flipped a coin. And they’re hoping it lands on organic kale. The stock had a selloff, so they bought. It’s not complicated. It’s just…irritating. And it’s a clear signal that no one in finance has anything better to do with their time. Or their money.

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2026-01-17 00:26