Grocery Outlet (NASDAQ:GO) Cut to “Market Perform” at Telsey Advisory Group

Telsey Advisory Group lowered shares of Grocery Outlet (NASDAQ:GO) from an outperform rating to a market perform rating in a research note issued to investors on Thursday morning, MarketBeat Ratings reports. The firm currently has $9.00 price objective on the stock, down from their previous price objective of $15.00.

Several other equities research analysts have also issued reports on the company. TD Cowen dropped their price target on Grocery Outlet from $18.00 to $16.00 and set a “hold” rating on the stock in a research report on Wednesday, November 5th. Wells Fargo & Company lowered shares of Grocery Outlet from an “overweight” rating to an “equal weight” rating and lowered their target price for the company from $16.00 to $10.50 in a research note on Wednesday, February 25th. Deutsche Bank Aktiengesellschaft set a $11.00 target price on shares of Grocery Outlet in a report on Thursday, January 8th. Morgan Stanley decreased their price target on shares of Grocery Outlet from $14.00 to $11.00 and set an “equal weight” rating for the company in a report on Thursday, January 15th. Finally, The Goldman Sachs Group lowered their price objective on shares of Grocery Outlet from $12.00 to $9.00 and set a “sell” rating for the company in a research report on Thursday, February 19th. Eleven investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $10.68.

Grocery Outlet Stock Up 3.6%

NASDAQ:GO opened at $6.57 on Thursday. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.25 and a current ratio of 1.37. The company has a market capitalization of $644.85 million, a price-to-earnings ratio of -2.87, a price-to-earnings-growth ratio of 1.34 and a beta of 0.50. Grocery Outlet has a one year low of $6.20 and a one year high of $19.41. The stock has a 50-day simple moving average of $9.64 and a 200 day simple moving average of $12.58.

Grocery Outlet (NASDAQ:GO) last announced its quarterly earnings data on Wednesday, March 4th. The company reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.02). The firm had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.23 billion. Grocery Outlet had a negative net margin of 4.80% and a positive return on equity of 5.93%. The company’s quarterly revenue was up 10.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.15 EPS. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Sell-side analysts predict that Grocery Outlet will post 0.63 EPS for the current fiscal year.

Hedge Funds Weigh In On Grocery Outlet

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

Key Grocery Outlet News

Here are the key news stories impacting Grocery Outlet this week:

• Positive Sentiment: Grocery Outlet retained Gordon Brothers to market retail leasehold opportunities as part of its store-portfolio optimization, which could recover value from closed or underperforming locations. Gordon Brothers Retained by Grocery Outlet
• Neutral Sentiment: Management set FY2026 EPS guidance (about $0.45–$0.55), giving a baseline for expectations but signaling a recovery path that will depend on fixing value perception and comp trends. Q4 2025 earnings call transcript
• Negative Sentiment: Q4 results missed expectations: EPS of $0.19 vs. $0.21 estimate, revenue slightly below estimates, comps weakened. Management reported a large operating loss driven by $113.8M long‑lived asset impairment, $149.0M goodwill impairment and $45.9M of restructuring charges — contributing to a FY2025 net loss (reported coverage highlights these write‑downs). Investor Alert / Impairment Details
• Negative Sentiment: Company announced plans to close 36 stores after a $224.9M FY2025 net loss — a sign management is accelerating portfolio cuts but also acknowledging execution and merchandising issues that hurt traffic and margins. Grocery Outlet To Close 36 Stores
• Negative Sentiment: Multiple brokerages cut ratings and price targets (Jefferies, Morgan Stanley, Wells Fargo, DA Davidson, Telsey, Craig Hallum), citing the downbeat quarter, weaker comps and the need to restore value perception — analyst downgrades amplify selling pressure. Analysts Slash Forecasts After Q4
• Negative Sentiment: Shareholder‑side investigations have been announced (multiple firms), alleging possible misstatements around financials and operations — legal risk and potential disclosures add uncertainty. Ademi LLP Investigation
• Negative Sentiment: Market commentary and analysis point to weakening customer perception of value, increased promotional activity and competitive pressure — all factors that suggest the recovery could be prolonged. Why Grocery Outlet Stock Crashed Today

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.