Grocery Outlet Holding Corp. (NASDAQ:GO) Receives Consensus Recommendation of “Hold” from Analysts

Grocery Outlet Holding Corp. (NASDAQ:GO) has been assigned a consensus rating of “Hold” from the thirteen ratings firms that are covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a sell recommendation, seven have given a hold recommendation and four have issued a buy recommendation on the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $14.50.

GO has been the subject of a number of analyst reports. Deutsche Bank Aktiengesellschaft set a $11.00 price target on Grocery Outlet in a research note on Thursday, January 8th. Morgan Stanley cut their target price on Grocery Outlet from $14.00 to $11.00 and set an “equal weight” rating on the stock in a research report on Thursday. DA Davidson reissued a “neutral” rating and issued a $15.00 price target on shares of Grocery Outlet in a research report on Thursday, December 4th. Bank of America cut their price objective on shares of Grocery Outlet from $19.00 to $16.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Grocery Outlet in a research note on Wednesday, October 8th.

Grocery Outlet Trading Down 1.6%

Shares of Grocery Outlet stock opened at $9.59 on Friday. The stock has a market capitalization of $941.16 million, a PE ratio of -191.80, a price-to-earnings-growth ratio of 1.89 and a beta of 0.47. Grocery Outlet has a 52 week low of $8.96 and a 52 week high of $19.41. The stock has a 50 day moving average price of $10.49 and a two-hundred day moving average price of $13.86. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.25 and a current ratio of 1.30.

Grocery Outlet (NASDAQ:GO) last posted its quarterly earnings results on Tuesday, November 4th. The company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.19 by $0.02. Grocery Outlet had a negative net margin of 0.10% and a positive return on equity of 5.86%. The business had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.18 billion. During the same quarter last year, the firm posted $0.28 EPS. Grocery Outlet’s revenue was up 5.4% compared to the same quarter last year. Grocery Outlet has set its FY 2025 guidance at 0.780-0.80 EPS. As a group, equities analysts anticipate that Grocery Outlet will post 0.63 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Grocery Outlet news, EVP Steven K. Wilson sold 25,000 shares of Grocery Outlet stock in a transaction that occurred on Friday, November 7th. The shares were sold at an average price of $12.53, for a total transaction of $313,250.00. Following the transaction, the executive vice president owned 116,923 shares of the company’s stock, valued at $1,465,045.19. This trade represents a 17.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Intech Investment Management LLC bought a new position in shares of Grocery Outlet during the 2nd quarter worth $3,835,000. Eisler Capital Management Ltd. lifted its holdings in Grocery Outlet by 178.5% during the second quarter. Eisler Capital Management Ltd. now owns 227,101 shares of the company’s stock valued at $2,821,000 after purchasing an additional 145,554 shares during the last quarter. Rice Hall James & Associates LLC boosted its position in Grocery Outlet by 165.1% during the third quarter. Rice Hall James & Associates LLC now owns 315,898 shares of the company’s stock worth $5,070,000 after purchasing an additional 196,737 shares during the period. TD Asset Management Inc increased its stake in shares of Grocery Outlet by 113.3% in the second quarter. TD Asset Management Inc now owns 168,452 shares of the company’s stock worth $2,092,000 after purchasing an additional 89,478 shares in the last quarter. Finally, Texas Permanent School Fund Corp increased its stake in shares of Grocery Outlet by 489.1% in the second quarter. Texas Permanent School Fund Corp now owns 277,471 shares of the company’s stock worth $3,446,000 after purchasing an additional 230,369 shares in the last quarter. 99.87% of the stock is owned by institutional investors.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. (NASDAQ: GO) is a specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. Headquartered in Emeryville, California, the company operates two primary banners—Grocery Outlet and Fresh2Go—with a combined footprint of more than 400 stores. Its product assortment spans fresh produce, meat, dairy, bakery items, household staples, natural and organic offerings, and select specialty products, all sold at significant markdowns compared to conventional supermarkets.

The company’s unique buying model enables it to source inventory through opportunistic purchases of surplus freight, discontinued items, and closeout deals, which it then passes on as savings to its customers.