Grocery Outlet (NASDAQ:GO) Now Covered by Analysts at TD Cowen

Key Points

• TD Cowen initiated coverage of Grocery Outlet with a “hold” rating. The broader analyst consensus is “Reduce,” with one Buy, 11 Holds and two Sells, and an average price target of $10.50.
• Grocery Outlet reported quarterly EPS of $0.20, exceeding estimates of $0.13, while revenue reached $1.19 billion, up 1.1% year over year and slightly above expectations.
• Company insiders recently increased their holdings through purchases by an insider and a director, while institutional investors own 99.87% of the stock.

Equities research analysts at TD Cowen initiated coverage on shares of Grocery Outlet (NASDAQ:GO - Get Free Report) in a research report issued on Friday, Zacks reports. The brokerage set a "hold" rating on the stock.

Several other equities research analysts have also recently issued reports on the company. Morgan Stanley raised their price objective on Grocery Outlet from $7.00 to $11.00 and gave the stock an "equal weight" rating in a report on Thursday, August 13th. Roth Capital reiterated a "neutral" rating and issued a $10.00 target price on shares of Grocery Outlet in a research note on Thursday, August 13th. Wells Fargo & Company increased their target price on Grocery Outlet from $9.00 to $11.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 13th. Bank of America upgraded Grocery Outlet from a "neutral" rating to a "buy" rating and increased their target price for the stock from $12.50 to $15.00 in a research report on Wednesday, September 30th. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $9.00 price target on shares of Grocery Outlet in a research note on Thursday, August 13th. One research analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $10.50.

Grocery Outlet Stock Performance

Shares of GO opened at $12.93 on Friday. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.30 and a current ratio of 1.29. The company has a market capitalization of $1.28 billion, a price-to-earnings ratio of -3.34, a PEG ratio of 8.95 and a beta of 0.66. The company's 50 day simple moving average is $12.01 and its 200 day simple moving average is $9.57. Grocery Outlet has a 1 year low of $5.66 and a 1 year high of $14.49.

Grocery Outlet (NASDAQ:GO - Get Free Report) last announced its earnings results on Wednesday, August 12th. The company reported $0.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.13 by $0.07. The firm had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.17 billion. Grocery Outlet had a negative net margin of 8.04% and a positive return on equity of 5.84%. Grocery Outlet's revenue was up 1.1% compared to the same quarter last year. During the same quarter last year, the business earned $0.23 earnings per share. On average, sell-side analysts predict that Grocery Outlet will post 0.42 EPS for the current year.

Insider Buying and Selling at Grocery Outlet

In related news, insider Paul Miller acquired 8,000 shares of Grocery Outlet stock in a transaction on Thursday, August 20th. The shares were bought at an average price of $10.90 per share, for a total transaction of $87,200.00. Following the completion of the purchase, the insider directly owned 72,171 shares in the company, valued at $786,663.90. This trade represents a 12.47% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Carey F. Jaros bought 15,000 shares of the firm's stock in a transaction dated Thursday, August 27th. The stock was bought at an average cost of $11.70 per share, with a total value of $175,500.00. Following the transaction, the director directly owned 60,000 shares of the company's stock, valued at approximately $702,000. This trade represents a 33.33% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 5.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Grocery Outlet

Several hedge funds have recently modified their holdings of GO. Pinnacle Wealth Planning Services Inc. lifted its holdings in Grocery Outlet by 103.3% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,511 shares of the company's stock worth $28,000 after buying an additional 1,276 shares in the last quarter. Abel Hall LLC boosted its position in Grocery Outlet by 7.1% in the 3rd quarter. Abel Hall LLC now owns 19,607 shares of the company's stock valued at $221,000 after buying an additional 1,298 shares during the last quarter. NorthCrest Asset Manangement LLC boosted its position in Grocery Outlet by 13.5% in the 3rd quarter. NorthCrest Asset Manangement LLC now owns 15,282 shares of the company's stock valued at $182,000 after buying an additional 1,821 shares during the last quarter. GAMMA Investing LLC boosted its position in Grocery Outlet by 23.4% in the 3rd quarter. GAMMA Investing LLC now owns 10,615 shares of the company's stock valued at $119,000 after buying an additional 2,016 shares during the last quarter. Finally, Tidal Investments LLC acquired a new stake in shares of Grocery Outlet during the second quarter valued at about $784,000. 99.87% of the stock is currently owned by hedge funds and other institutional investors.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. operates a network of independently operated, extreme-value grocery stores under the Grocery Outlet banner. The company offers a broad assortment of products, including fresh produce, meat, dairy, deli items, frozen foods, packaged groceries, beverages, health and beauty products, household essentials and seasonal merchandise.

Its business model is based on opportunistic purchasing, allowing Grocery Outlet to source branded and private-label products from manufacturers, distributors and other suppliers when they are available through closeouts, surplus inventory, packaging changes, production overruns or other special buying opportunities.

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