Grocery Outlet (NASDAQ:GO) Stock Gets Price Target Bump from DA Davidson

Key Points

• DA Davidson raised Grocery Outlet’s price target to $14 from $12 but kept a neutral rating, implying about 9.1% upside from the prior close.
• Analyst sentiment remains cautious overall: the consensus rating is “Reduce” and the average price target is $11.50, despite several brokers recently raising targets.
• Grocery Outlet’s latest quarter met EPS expectations at $0.16 and modestly beat revenue estimates with $1.18 billion; year-over-year revenue rose 0.9%.

Grocery Outlet (NASDAQ:GO - Get Free Report) had its price target upped by DA Davidson from $12.00 to $14.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. DA Davidson's target price points to a potential upside of 9.08% from the company's previous close.

Other analysts also recently issued reports about the stock. Morgan Stanley lifted their price objective on shares of Grocery Outlet from $7.00 to $11.00 and gave the company an "equal weight" rating in a research report on Thursday, August 13th. Wells Fargo & Company lifted their price target on Grocery Outlet from $11.00 to $13.00 and gave the stock an "equal weight" rating in a research note on Wednesday. Telsey Advisory Group raised their target price on shares of Grocery Outlet from $12.00 to $14.00 and gave the stock a "market perform" rating in a report on Wednesday. UBS Group lifted their price objective on Grocery Outlet from $10.00 to $11.50 and gave the stock a "neutral" rating in a report on Monday, August 17th. Finally, Bank of America raised shares of Grocery Outlet from a "neutral" rating to a "buy" rating and boosted their price target for the company from $12.50 to $15.00 in a report on Wednesday, September 30th. One analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Grocery Outlet has an average rating of "Reduce" and a consensus price target of $11.50.

Grocery Outlet Trading Down 2.2%

Shares of NASDAQ GO traded down $0.28 during trading on Thursday, hitting $12.84. 1,263,158 shares of the company traded hands, compared to its average volume of 2,946,191. Grocery Outlet has a 1 year low of $5.66 and a 1 year high of $14.32. The company has a 50-day moving average price of $12.23 and a 200-day moving average price of $9.72. The firm has a market capitalization of $1.27 billion, a P/E ratio of -3.34, a P/E/G ratio of 9.75 and a beta of 0.64. The company has a quick ratio of 0.30, a current ratio of 1.29 and a debt-to-equity ratio of 0.60.

Grocery Outlet (NASDAQ:GO - Get Free Report) last posted its earnings results on Tuesday, November 10th. The company reported $0.16 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.16. Grocery Outlet had a negative net margin of 7.99% and a positive return on equity of 5.49%. The firm had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter in the prior year, the company earned $0.21 EPS. The company's revenue was up .9% on a year-over-year basis. On average, equities analysts predict that Grocery Outlet will post 0.42 EPS for the current year.

Insider Transactions at Grocery Outlet

In other news, insider Paul Miller acquired 8,000 shares of Grocery Outlet stock in a transaction on Thursday, August 20th. The stock was acquired at an average cost of $10.90 per share, with a total value of $87,200.00. Following the completion of the acquisition, the insider owned 72,171 shares in the company, valued at approximately $786,663.90. This trade represents a 12.47% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Carey F. Jaros bought 15,000 shares of the stock in a transaction on Thursday, August 27th. The stock was purchased at an average price of $11.70 per share, for a total transaction of $175,500.00. Following the completion of the purchase, the director 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. The SEC filing for this purchase provides additional information. Company insiders own 5.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Heartland Advisors Inc. grew its holdings in Grocery Outlet by 6.2% during the 3rd quarter. Heartland Advisors Inc. now owns 703,050 shares of the company's stock valued at $7,909,000 after buying an additional 41,150 shares in the last quarter. Ieq Capital LLC grew its stake in Grocery Outlet by 29.8% during the third quarter. Ieq Capital LLC now owns 34,765 shares of the company's stock valued at $391,000 after acquiring an additional 7,973 shares in the last quarter. Focus Advisor Solutions LLC increased its holdings in Grocery Outlet by 84.2% during the 3rd quarter. Focus Advisor Solutions LLC now owns 22,249 shares of the company's stock worth $250,000 after acquiring an additional 10,173 shares during the period. Landscape Capital Management L.L.C. purchased a new stake in Grocery Outlet in the 3rd quarter worth approximately $649,000. Finally, Edgestream Partners L.P. purchased a new stake in Grocery Outlet in the 3rd quarter worth approximately $387,000. 99.87% of the stock is owned by institutional investors.

Key Grocery Outlet News

Here's some of the latest news about GO:

• Positive Sentiment: Third-quarter revenue was $1.18 billion, above analysts’ $1.17 billion estimate, while comparable-store sales grew 0.5% as customer traffic increased. The company also raised its fiscal 2026 comparable-sales outlook. Grocery Outlet Q3 Earnings Beat Estimates on Stronger Traffic & Comps
• Positive Sentiment: Fiscal 2026 EPS guidance of $0.52–$0.55 includes the current $0.52 consensus estimate, while revenue guidance of $4.7–$4.72 billion is broadly in line with expectations. Grocery Outlet Announces Third Quarter Fiscal 2026 Financial Results
• Neutral Sentiment: TD Cowen raised its price target to $14 from $12, and Wells Fargo lifted its target to $13 from $11. Both firms maintained neutral ratings, limiting the significance of the increases. TD Cowen stock recommendations

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. operates Grocery Outlet Bargain Market, a discount grocery chain offering brand-name products and private-label items at value-oriented prices. Its stores carry a range of goods, including groceries, fresh produce, meat, dairy, frozen foods and household products. The company uses opportunistic buying to source products, which can result in changing assortments and limited-time deals. Founded in 1946 by Jim Read, Grocery Outlet has grown from a California-based business into a retailer serving communities across the western United States and parts of the East Coast.

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