Zacks Research Cuts Earnings Estimates for Grocery Outlet

Grocery Outlet Holding Corp. (NASDAQ:GO) – Stock analysts at Zacks Research reduced their Q1 2026 earnings per share estimates for shares of Grocery Outlet in a report issued on Wednesday, March 18th. Zacks Research analyst Team now anticipates that the company will post earnings of ($0.03) per share for the quarter, down from their previous estimate of $0.11. 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 Q2 2026 earnings at $0.13 EPS, Q3 2026 earnings at $0.18 EPS, Q4 2026 earnings at $0.10 EPS, FY2026 earnings at $0.39 EPS, Q1 2027 earnings at ($0.02) EPS, Q2 2027 earnings at $0.15 EPS, Q3 2027 earnings at $0.20 EPS, Q4 2027 earnings at $0.11 EPS and FY2027 earnings at $0.45 EPS.

Several other analysts also recently commented on the stock. Jefferies Financial Group reiterated a “hold” rating and issued a $7.00 price target (down from $18.00) on shares of Grocery Outlet in a research report on Thursday, March 5th. Craig Hallum downgraded shares of Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research report on Thursday, March 5th. TD Cowen reaffirmed a “hold” rating on shares of Grocery Outlet in a report on Thursday, March 5th. Wells Fargo & Company decreased their target price on shares of Grocery Outlet from $10.50 to $7.00 and set an “equal weight” rating for the company in a research note on Thursday, March 5th. Finally, Deutsche Bank Aktiengesellschaft set a $11.00 price target on Grocery Outlet in a report on Thursday, January 8th. Eleven investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Grocery Outlet has an average rating of “Reduce” and an average target price of $10.68.

Grocery Outlet Stock Performance

Shares of GO opened at $5.79 on Monday. The company has a current ratio of 1.37, a quick ratio of 0.32 and a debt-to-equity ratio of 0.49. The firm has a market cap of $568.29 million, a PE ratio of -2.53, a price-to-earnings-growth ratio of 1.69 and a beta of 0.50. The company’s 50 day simple moving average is $8.89 and its 200-day simple moving average is $11.67. Grocery Outlet has a 12-month low of $5.66 and a 12-month high of $19.41.

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

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Aster Capital Management DIFC Ltd increased its position in Grocery Outlet by 1,030.4% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company’s stock worth $26,000 after purchasing an additional 2,308 shares during the period. Bayforest Capital Ltd acquired a new stake in shares of Grocery Outlet in the 3rd quarter valued at approximately $29,000. Hantz Financial Services Inc. lifted its holdings in shares of 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 period. Kestra Advisory Services LLC purchased a new stake in shares of Grocery Outlet in the fourth quarter valued at approximately $35,000. Finally, PNC Financial Services Group Inc. boosted its stake in shares of Grocery Outlet by 32.3% in the second 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 in the last quarter. 99.87% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Grocery Outlet

In other news, CEO Jason J. N. Potter bought 286,097 shares of Grocery Outlet stock in a transaction dated Thursday, March 19th. The stock was bought at an average price of $5.90 per share, for a total transaction of $1,687,972.30. Following the purchase, the chief executive officer owned 574,366 shares of the company’s stock, valued at approximately $3,388,759.40. The trade was a 99.25% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Jeffrey York bought 120,000 shares of the stock in a transaction dated Monday, March 9th. The stock was purchased at an average cost of $5.82 per share, for a total transaction of $698,400.00. Following the acquisition, the director owned 120,000 shares of the company’s stock, valued at approximately $698,400. This represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders bought 787,097 shares of company stock worth $4,679,132 and sold 89,493 shares worth $524,431. Corporate insiders own 4.50% of the company’s stock.

Key Grocery Outlet News

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

• Positive Sentiment: Director insider buying: Director Erik D. Ragatz substantially increased his stake, buying 33,997 shares on March 18 (~$5.85/sh) and a reported 50,000 shares on March 19 (~$5.75/sh), raising his direct holdings to ~526,500 shares. Insider purchases at current low prices can signal management confidence and provide short‑term support. InsiderTrades: Director Purchases
• Neutral Sentiment: Company profile/operations story: A feature on Grocery Outlet’s opportunistic sourcing and discount model ran on MSN, useful context for revenue and margin drivers but unlikely to move the stock materially by itself. MSN: How Grocery Outlet’s food gets onto its shelves
• Negative Sentiment: Multiple class‑action / shareholder alerts: Several law firms (Pomerantz, Robbins LLP, Bernstein Liebhard, Faruqi & Faruqi, Levi & Korsinsky, etc.) have announced or reminded investors of securities‑fraud suits covering Aug. 5, 2025–Mar. 4, 2026, and set lead‑plaintiff deadlines (commonly May 15, 2026). The proliferation of filings increases legal and reputational risk, may raise defense or settlement costs, and typically weighs on the stock until resolved. Pomerantz investor alert on GO class action
• Negative Sentiment: Analyst and estimate pressure: Following the March 4 quarter (missed EPS and slightly light revenue) sell‑side firms have cut targets/ratings and services such as Zacks have trimmed multi‑year EPS views (e.g., FY2028 view lower than consensus). Downward revisions and “hold/reduce” stances constrain upside until earnings/guidance stabilize. (See recent analyst notes and coverage summaries.)

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.