Zacks Research Reduces Earnings Estimates for Grocery Outlet

Grocery Outlet Holding Corp. (NASDAQ:GO) – Zacks Research dropped their Q2 2025 earnings per share (EPS) estimates for shares of Grocery Outlet in a research report issued to clients and investors on Tuesday, May 20th. Zacks Research analyst S. Singh now anticipates that the company will post earnings of $0.13 per share for the quarter, down from their previous forecast of $0.18. The consensus estimate for Grocery Outlet’s current full-year earnings is $0.63 per share. Zacks Research also issued estimates for Grocery Outlet’s Q3 2025 earnings at $0.24 EPS, Q4 2025 earnings at $0.13 EPS and Q3 2026 earnings at $0.30 EPS.

Grocery Outlet (NASDAQ:GO) last released its quarterly earnings results on Tuesday, May 6th. The company reported $0.13 EPS for the quarter, topping the consensus estimate of $0.07 by $0.06. Grocery Outlet had a return on equity of 5.25% and a net margin of 1.20%. The firm had revenue of $1.13 billion for the quarter, compared to analyst estimates of $1.12 billion. During the same period in the previous year, the company posted $0.09 EPS. Grocery Outlet’s revenue for the quarter was up 8.6% on a year-over-year basis.

Several other research analysts have also recently weighed in on the company. Deutsche Bank Aktiengesellschaft cut Grocery Outlet from a “buy” rating to a “hold” rating and set a $12.00 target price for the company. in a research note on Wednesday, February 26th. Wells Fargo & Company raised their target price on Grocery Outlet from $18.00 to $19.00 and gave the company an “overweight” rating in a research note on Wednesday, May 7th. The Goldman Sachs Group decreased their target price on Grocery Outlet from $14.00 to $11.00 and set a “sell” rating for the company in a research note on Thursday, February 27th. Morgan Stanley decreased their target price on Grocery Outlet from $13.00 to $10.00 and set an “underperform” rating for the company in a research note on Wednesday, February 26th. Finally, UBS Group raised their target price on Grocery Outlet from $14.50 to $17.00 and gave the company a “neutral” rating in a research note on Wednesday, May 7th. Two analysts have rated the stock with a sell rating, nine have given a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $15.62.

Grocery Outlet Trading Up 0.3%

NASDAQ:GO opened at $13.48 on Thursday. Grocery Outlet has a 1 year low of $10.26 and a 1 year high of $23.06. The stock has a market cap of $1.32 billion, a price-to-earnings ratio of 26.43, a PEG ratio of 9.08 and a beta of 0.42. The business has a fifty day moving average of $14.36 and a 200-day moving average of $15.76. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.33 and a current ratio of 1.46.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Barclays PLC boosted its position in Grocery Outlet by 1,224.1% in the third quarter. Barclays PLC now owns 300,393 shares of the company’s stock valued at $5,271,000 after buying an additional 277,706 shares in the last quarter. Sterling Capital Management LLC boosted its position in Grocery Outlet by 53.9% in the fourth quarter. Sterling Capital Management LLC now owns 5,808 shares of the company’s stock valued at $91,000 after buying an additional 2,034 shares in the last quarter. Choreo LLC acquired a new stake in Grocery Outlet in the fourth quarter valued at approximately $245,000. New York State Common Retirement Fund boosted its position in Grocery Outlet by 124.7% in the fourth quarter. New York State Common Retirement Fund now owns 88,350 shares of the company’s stock valued at $1,379,000 after buying an additional 49,035 shares in the last quarter. Finally, Raymond James Financial Inc. acquired a new stake in Grocery Outlet in the fourth quarter valued at approximately $1,079,000. 99.87% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other news, Director Erik D. Ragatz bought 19,000 shares of the business’s stock in a transaction that occurred on Friday, May 9th. The stock was acquired at an average cost of $14.46 per share, for a total transaction of $274,740.00. Following the purchase, the director now owns 19,000 shares of the company’s stock, valued at approximately $274,740. This trade represents a ∞ increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Steven K. Wilson sold 6,682 shares of the firm’s stock in a transaction that occurred on Monday, March 10th. The stock was sold at an average price of $13.16, for a total transaction of $87,935.12. Following the sale, the executive vice president now owns 166,923 shares of the company’s stock, valued at $2,196,706.68. This trade represents a 3.85% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders bought 219,000 shares of company stock worth $2,709,790 and sold 19,124 shares worth $235,730. Corporate insiders own 4.50% of the company’s stock.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products.