Wells Fargo & Company Cuts Grocery Outlet (NASDAQ:GO) Price Target to $7.00

Grocery Outlet (NASDAQ:GO) had its price target cut by Wells Fargo & Company from $10.50 to $7.00 in a research note issued to investors on Thursday,Benzinga reports. They currently have an equal weight rating on the stock.

Other research analysts have also recently issued research reports about the stock. Telsey Advisory Group cut shares of Grocery Outlet from an “outperform” rating to a “market perform” rating and cut their target price for the company from $15.00 to $9.00 in a research note on Thursday. Morgan Stanley decreased their price target on Grocery Outlet from $11.00 to $7.00 and set an “equal weight” rating on the stock in a research report on Thursday. The Goldman Sachs Group dropped their price target on Grocery Outlet from $12.00 to $9.00 and set a “sell” rating for the company in a report on Thursday, February 19th. Deutsche Bank Aktiengesellschaft set a $11.00 price objective on Grocery Outlet in a research report on Thursday, January 8th. Finally, Zacks Research lowered Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 14th. Eleven analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus price target of $10.68.

Grocery Outlet Trading Up 3.6%

Shares of Grocery Outlet stock opened at $6.57 on Thursday. Grocery Outlet has a 12-month low of $6.20 and a 12-month high of $19.41. The stock has a market capitalization of $644.85 million, a P/E ratio of -2.87, a price-to-earnings-growth ratio of 1.34 and a beta of 0.50. The company has a 50-day simple moving average of $9.64 and a 200 day simple moving average of $12.58. The company has a quick ratio of 0.25, a current ratio of 1.37 and a debt-to-equity ratio of 0.49.

Grocery Outlet (NASDAQ:GO) last released its quarterly earnings results on Wednesday, March 4th. The company reported $0.19 EPS for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.02). The firm had revenue of $1.22 billion during 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%. Grocery Outlet’s quarterly revenue was up 10.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.15 earnings per share. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Research analysts expect that Grocery Outlet will post 0.63 earnings per share for the current fiscal year.

Institutional Trading of Grocery Outlet

Hedge funds have recently modified their holdings of the stock. Aster Capital Management DIFC Ltd increased its holdings in shares of Grocery Outlet by 1,030.4% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company’s stock valued at $26,000 after purchasing an additional 2,308 shares in the last quarter. Bayforest Capital Ltd acquired a new position in Grocery Outlet during the 3rd quarter worth $29,000. Hantz Financial Services Inc. boosted its position in Grocery Outlet by 591.5% in the 3rd quarter. Hantz Financial Services Inc. now owns 2,033 shares of the company’s stock valued at $33,000 after buying an additional 1,739 shares during the last quarter. Kestra Advisory Services LLC bought a new position in Grocery Outlet in the 4th quarter valued at $35,000. Finally, PNC Financial Services Group Inc. increased its stake in shares of Grocery Outlet by 32.3% in the 2nd quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company’s stock valued at $37,000 after buying an additional 719 shares during the period. 99.87% of the stock is owned by institutional investors.

Key Headlines Impacting Grocery Outlet

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

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.