Grocery Outlet (NASDAQ:GO) Issues Quarterly Earnings Results, Meets Expectations

Key Points

• Grocery Outlet reported quarterly EPS of $0.16, in line with analyst expectations. Revenue was $1.18 billion, slightly above the $1.17 billion consensus.
• Shares rose to $14.02 in Tuesday mid-day trading. The stock’s consensus analyst rating was “Reduce,” with an average price target of $10.50.
• Director Carey Jaros and insider Paul Miller both bought shares, increasing their respective holdings by 33.3% and 12.5%.

Grocery Outlet (NASDAQ:GO - Get Free Report) posted its quarterly earnings results on Tuesday. The company reported $0.16 EPS for the quarter, hitting analysts' consensus estimates of $0.16, FiscalAI reports. Grocery Outlet had a positive return on equity of 5.84% and a negative net margin of 8.04%. The company had revenue of $1.18 billion for the quarter, compared to analysts' expectations of $1.17 billion.

Grocery Outlet Price Performance

Shares of NASDAQ GO traded up $0.15 during mid-day trading on Tuesday, hitting $14.02. 3,731,479 shares of the company's stock traded hands, compared to its average volume of 2,930,326. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.29 and a quick ratio of 0.30. Grocery Outlet has a 1 year low of $5.66 and a 1 year high of $14.33. The company's 50-day moving average is $12.17 and its two-hundred day moving average is $9.68. The company has a market capitalization of $1.39 billion, a P/E ratio of -3.62, a PEG ratio of 9.52 and a beta of 0.64.

Insider Activity

In related news, Director Carey Jaros purchased 15,000 shares of the company's stock in a transaction that occurred on Thursday, August 27th. The stock was bought at an average price of $11.70 per share, for a total transaction of $175,500.00. Following the completion of the transaction, the director owned 60,000 shares in the company, valued at approximately $702,000. The trade was a 33.33% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, 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 cost 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 of the company's stock, valued at $786,663.90. The trade was a 12.47% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 5.60% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently commented on GO. Bank of America raised shares of Grocery Outlet from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $12.50 to $15.00 in a report on Wednesday, September 30th. TD Cowen began coverage on shares of Grocery Outlet in a research note on Friday, October 30th. They set a "hold" rating for the company. Telsey Advisory Group reiterated a "market perform" rating on shares of Grocery Outlet in a report on Thursday, August 13th. Wells Fargo & Company boosted their price target on shares of Grocery Outlet from $9.00 to $11.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 13th. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $9.00 price objective on shares of Grocery Outlet in a report on Thursday, August 13th. One equities research analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and two have given 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 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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