Grab Holdings Limited (NASDAQ:GRAB) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts have a “Moderate Buy” consensus on Grab, with eight buy ratings, one strong buy, one hold and one sell. The average 12-month price target is $6.01, compared with a recent share price of $3.46.
• Grab’s latest quarterly results exceeded expectations, with adjusted EPS of $0.06 versus the $0.05 consensus and revenue of $997 million versus estimates of $994.97 million.
• Insiders sold 1.58 million shares worth approximately $5.77 million over the past 90 days, while institutional investors and hedge funds own 55.52% of the company.

Grab Holdings Limited (NASDAQ:GRAB - Get Free Report) has earned a consensus rating of "Moderate Buy" from the eleven brokerages that are currently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation, eight have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $6.0056.

A number of analysts have issued reports on the company. China Renaissance raised Grab from a "hold" rating to a "buy" rating and set a $5.00 target price on the stock in a research report on Wednesday, May 6th. Zacks Research upgraded Grab from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 2nd. Weiss Ratings cut Grab from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, August 17th. Barclays cut their price objective on Grab from $7.00 to $5.00 and set an "overweight" rating on the stock in a report on Thursday, July 9th. Finally, Benchmark reissued a "buy" rating on shares of Grab in a research note on Tuesday, August 4th.

Grab Price Performance

Shares of GRAB opened at $3.46 on Wednesday. The firm has a 50-day simple moving average of $3.63 and a two-hundred day simple moving average of $3.71. The stock has a market cap of $14.18 billion, a PE ratio of 57.68, a P/E/G ratio of 0.93 and a beta of 0.89. Grab has a 1-year low of $3.18 and a 1-year high of $6.62. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.52 and a quick ratio of 1.51.

Grab (NASDAQ:GRAB - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.06 EPS for the quarter, topping the consensus estimate of $0.05 by $0.01. The firm had revenue of $997.00 million for the quarter, compared to analyst estimates of $994.97 million. Grab had a net margin of 15.97% and a return on equity of 8.83%. As a group, analysts forecast that Grab will post 0.13 EPS for the current year.

Insider Buying and Selling

In other news, COO Alexander Charles Hungate sold 144,093 shares of the firm's stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $3.45, for a total value of $497,120.85. Following the completion of the transaction, the chief operating officer owned 6,254,023 shares of the company's stock, valued at approximately $21,576,379.35. This trade represents a 2.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Philipp Wolfgang Josef Kandal sold 30,000 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $3.64, for a total transaction of $109,200.00. Following the completion of the transaction, the insider directly owned 3,988,735 shares of the company's stock, valued at approximately $14,518,995.40. The trade was a 0.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,580,093 shares of company stock worth $5,769,341 over the last 90 days. 3.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Grab

A number of hedge funds have recently added to or reduced their stakes in GRAB. Amundi boosted its position in Grab by 6.9% in the 2nd quarter. Amundi now owns 12,522,874 shares of the company's stock valued at $47,211,000 after buying an additional 810,651 shares during the period. VPR Management LLC acquired a new position in shares of Grab in the second quarter worth $829,000. Vanguard Capital Wealth Advisors purchased a new stake in shares of Grab during the second quarter worth $143,000. Two Sigma Securities LLC raised its stake in shares of Grab by 114.5% in the second quarter. Two Sigma Securities LLC now owns 303,096 shares of the company's stock valued at $1,143,000 after acquiring an additional 161,821 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. raised its stake in shares of Grab by 10.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 81,567 shares of the company's stock valued at $308,000 after acquiring an additional 7,450 shares in the last quarter. 55.52% of the stock is currently owned by institutional investors and hedge funds.

About Grab

Grab Holdings Inc is a Singapore-based technology company that operates a consumer-facing "super app" across Southeast Asia offering services spanning ride-hailing, food and package delivery, and digital payments. Its platform connects consumers, drivers, merchants and delivery partners through mobile applications and supports on-demand mobility (taxi and private car), last-mile logistics, and on-demand food delivery under brands such as GrabFood and GrabExpress. The company has also developed a merchant-facing ecosystem that supports ordering, payment acceptance and loyalty functions.

Beyond transportation and delivery, Grab has expanded into financial services through Grab Financial Group, which provides digital payments via GrabPay, consumer lending, insurance distribution and small-business financial solutions.

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