Grocery Outlet (NASDAQ:GO) Shares Gap Down Following Analyst Downgrade

Grocery Outlet Holding Corp. (NASDAQ:GO)’s stock price gapped down before the market opened on Wednesday after Wells Fargo & Company downgraded the stock from an overweight rating to an equal weight rating. The stock had previously closed at $10.09, but opened at $9.62. Wells Fargo & Company now has a $10.50 price target on the stock, down from their previous price target of $16.00. Grocery Outlet shares last traded at $9.94, with a volume of 277,490 shares traded.

A number of other equities research analysts have also issued reports on the stock. DA Davidson reaffirmed a “neutral” rating and set a $15.00 price objective on shares of Grocery Outlet in a report on Thursday, December 4th. Bank of America cut their target price on shares of Grocery Outlet from $19.00 to $16.00 and set a “neutral” rating for the company in a research note on Wednesday, November 5th. Deutsche Bank Aktiengesellschaft set a $11.00 price target on shares of Grocery Outlet in a research note on Thursday, January 8th. UBS Group reissued a “neutral” rating and set a $11.50 price objective on shares of Grocery Outlet in a report on Thursday, December 18th. Finally, TD Cowen reduced their target price on Grocery Outlet from $18.00 to $16.00 and set a “hold” rating on the stock in a report on Wednesday, November 5th. Three investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Grocery Outlet presently has a consensus rating of “Hold” and an average price target of $13.64.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. T. Rowe Price Investment Management Inc. increased its position in Grocery Outlet by 54.0% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 15,763,945 shares of the company’s stock valued at $159,216,000 after acquiring an additional 5,528,722 shares during the last quarter. Millennium Management LLC lifted its holdings in shares of Grocery Outlet by 3,558.0% in the 3rd quarter. Millennium Management LLC now owns 1,825,407 shares of the company’s stock worth $29,298,000 after acquiring an additional 1,775,505 shares during the last quarter. UBS Group AG boosted its stake in shares of Grocery Outlet by 87.6% during the 4th quarter. UBS Group AG now owns 2,726,299 shares of the company’s stock worth $27,536,000 after purchasing an additional 1,272,859 shares during the period. Boston Partners grew its holdings in Grocery Outlet by 219.7% during the 3rd quarter. Boston Partners now owns 1,462,633 shares of the company’s stock valued at $23,475,000 after purchasing an additional 1,005,126 shares during the last quarter. Finally, Invesco Ltd. raised its position in Grocery Outlet by 106.5% in the 4th quarter. Invesco Ltd. now owns 1,914,410 shares of the company’s stock worth $19,336,000 after purchasing an additional 987,367 shares during the period. Hedge funds and other institutional investors own 99.87% of the company’s stock.

Grocery Outlet Trading Down 1.0%

The company’s 50 day simple moving average is $9.87 and its 200-day simple moving average is $13.06. The firm has a market cap of $980.42 million, a P/E ratio of -199.80, a P/E/G ratio of 2.05 and a beta of 0.49. The company has a quick ratio of 0.25, a current ratio of 1.30 and a debt-to-equity ratio of 0.40.

About Grocery Outlet

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.