Grocery Outlet (NASDAQ:GO) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo raised its Grocery Outlet price target from $11 to $13 but maintained an “equal weight” rating; the new target implied about 0.65% downside from the prior close.
• Third-quarter revenue rose 0.9% year over year to $1.18 billion, above estimates, while EPS of $0.16 matched consensus and declined from $0.21 a year earlier.
• Profitability remains a concern: higher costs and promotional pricing are pressuring the outlook, while fiscal 2026 revenue guidance was broadly in line with estimates. Analysts overall have a “Reduce” consensus rating and an average $10.68 price target.

Grocery Outlet (NASDAQ:GO - Get Free Report) had its target price upped by equities researchers at Wells Fargo & Company from $11.00 to $13.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's target price points to a potential downside of 0.65% from the stock's previous close.

Several other equities analysts have also commented on GO. TD Cowen assumed coverage on shares of Grocery Outlet in a research report on Friday, October 30th. They issued a "hold" rating for the company. 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. DA Davidson boosted their target price on shares of Grocery Outlet from $9.00 to $12.00 and gave the stock a "neutral" rating in a research report on Thursday, August 13th. Morgan Stanley upped their price target on shares of Grocery Outlet from $7.00 to $11.00 and gave the company an "equal weight" rating in a research note on Thursday, August 13th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $9.00 price target on shares of Grocery Outlet in a report on Thursday, August 13th. One research analyst has rated the stock with a Buy rating, eleven have given 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 Trading Down 6.7%

Grocery Outlet stock opened at $13.09 on Wednesday. The stock has a 50-day moving average of $12.21 and a two-hundred day moving average of $9.71. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.30 and a current ratio of 1.29. Grocery Outlet has a one year low of $5.66 and a one year high of $14.32. The stock has a market cap of $1.30 billion, a PE ratio of -3.39, a price-to-earnings-growth ratio of 9.64 and a beta of 0.64.

Grocery Outlet (NASDAQ:GO - Get Free Report) last issued its quarterly earnings results on Tuesday, November 10th. The company reported $0.16 earnings per share for the quarter, hitting the consensus estimate of $0.16. Grocery Outlet had a positive return on equity of 5.84% and a negative net margin of 8.04%. The business had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter last year, the company earned $0.21 earnings per share. The company's quarterly revenue was up .9% on a year-over-year basis. On average, research analysts anticipate that Grocery Outlet will post 0.42 EPS for the current fiscal year.

Insider Transactions at Grocery Outlet

In other news, Director Carey Jaros purchased 15,000 shares of the company's stock in a transaction on Thursday, August 27th. The shares were acquired at an average price of $11.70 per share, for a total transaction of $175,500.00. Following the purchase, the director owned 60,000 shares in the company, valued at $702,000. This trade represents a 33.33% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Paul Miller acquired 8,000 shares of the business's stock in a transaction dated Thursday, August 20th. The stock was purchased at an average cost of $10.90 per share, for a total transaction of $87,200.00. Following the completion of the acquisition, the insider directly owned 72,171 shares of the company's stock, valued at approximately $786,663.90. This trade represents a 12.47% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 5.60% of the company's stock.

Hedge Funds Weigh In On Grocery Outlet

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Heartland Advisors Inc. lifted its stake 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 acquiring an additional 41,150 shares during the period. Ieq Capital LLC increased its stake in shares of Grocery Outlet by 29.8% in the third quarter. Ieq Capital LLC now owns 34,765 shares of the company's stock worth $391,000 after acquiring an additional 7,973 shares during the period. Focus Advisor Solutions LLC increased its stake in shares of Grocery Outlet by 84.2% in the third 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. acquired a new stake in shares of Grocery Outlet in the third quarter worth $649,000. Finally, Edgestream Partners L.P. purchased a new position in shares of Grocery Outlet during the third quarter worth $387,000. Institutional investors and hedge funds own 99.87% of the company's stock.

Key Headlines Impacting Grocery Outlet

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

• Positive Sentiment: Third-quarter revenue rose 0.9% year over year to $1.18 billion, topping the $1.17 billion consensus estimate. Comparable-store sales increased 0.5%. EPS of $0.16 also beat Zacks’ $0.15 estimate, although it matched the broader $0.16 consensus. Article: Grocery Outlet: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Fiscal 2026 revenue guidance of $4.70 billion to $4.72 billion is broadly in line with FactSet’s $4.70 billion estimate, offering little apparent upside surprise. Article: Grocery Outlet Fiscal 2026 Revenue Outlook
• Negative Sentiment: Profitability is the main concern: EPS fell from $0.21 a year ago, and higher costs and promotional pricing are pressuring the profit outlook. That may explain why a modest sales beat did not translate into a more clearly positive market reaction. Article: Grocery Outlook Pressured by Costs and Promotional Pricing

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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