Bank of America Corp DE Purchases 615,040 Shares of Grocery Outlet Holding Corp. $GO

Key Points

• Bank of America acquired 615,040 shares of Grocery Outlet in the second quarter, worth approximately $6.14 million and representing about 0.62% of the company. Institutional investors collectively own 99.87% of the stock.
• Analysts remain cautious, with 12 Hold ratings and two Sell ratings; Grocery Outlet has a consensus rating of “Reduce” and an average price target of $10.59.
• Grocery Outlet exceeded quarterly expectations, reporting $0.20 in adjusted EPS versus the $0.13 estimate and $1.19 billion in revenue. Two insiders also purchased shares, while the stock recently traded around $11.07.

Bank of America Corp DE acquired a new position in shares of Grocery Outlet Holding Corp. (NASDAQ:GO - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 615,040 shares of the company's stock, valued at approximately $6,138,000. Bank of America Corp DE owned approximately 0.62% of Grocery Outlet at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Jupiter Topco LLC bought a new position in Grocery Outlet during the second quarter valued at approximately $387,000. Legal & General Group Plc bought a new stake in Grocery Outlet in the second quarter worth $2,227,000. The Manufacturers Life Insurance Company acquired a new position in Grocery Outlet during the second quarter worth $248,000. Sanctuary Advisors LLC bought a new position in Grocery Outlet during the second quarter valued at about $134,000. Finally, Quantbot Technologies LP bought a new stake in shares of Grocery Outlet during the 2nd quarter worth about $46,000. Hedge funds and other institutional investors own 99.87% of the company's stock.

Wall Street Analyst Weigh In

GO has been the topic of a number of recent analyst reports. Weiss Ratings raised shares of Grocery Outlet from a "sell (d-)" rating to a "sell (d)" rating in a research report on Thursday, August 13th. TD Cowen reaffirmed a "hold" rating on shares of Grocery Outlet in a research report on Tuesday, August 18th. Wells Fargo & Company increased their target price on Grocery Outlet from $9.00 to $11.00 and gave the company an "equal weight" rating in a research note on Thursday, August 13th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $9.00 price target on shares of Grocery Outlet in a research report on Thursday, August 13th. Finally, Telsey Advisory Group reissued a "market perform" rating on shares of Grocery Outlet in a research report on Thursday, August 13th. Twelve research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus price target of $10.59.

Grocery Outlet Price Performance

NASDAQ GO opened at $11.07 on Monday. Grocery Outlet Holding Corp. has a twelve month low of $5.66 and a twelve month high of $16.99. The stock has a market cap of $1.10 billion, a PE ratio of -2.86, a PEG ratio of 7.70 and a beta of 0.72. The firm has a 50-day simple moving average of $10.84 and a 200 day simple moving average of $9.10. 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 (NASDAQ:GO - Get Free Report) last issued its earnings results on Wednesday, August 12th. The company reported $0.20 EPS for the quarter, beating analysts' consensus estimates of $0.13 by $0.07. The business had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.17 billion. Grocery Outlet had a positive return on equity of 5.84% and a negative net margin of 8.04%.Grocery Outlet's revenue was up 1.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.23 earnings per share. On average, research analysts forecast that Grocery Outlet Holding Corp. will post 0.42 EPS for the current year.

Insider Activity

In related news, Director Carey F. Jaros bought 15,000 shares of the company's stock in a transaction dated Thursday, August 27th. The stock was acquired at an average cost of $11.70 per share, with a total value of $175,500.00. Following the acquisition, the director owned 60,000 shares in the company, valued at approximately $702,000. This represents a 33.33% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Paul Miller purchased 8,000 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The stock was bought at an average cost of $10.90 per share, for a total transaction of $87,200.00. Following the purchase, the insider owned 72,171 shares in the company, valued at $786,663.90. This represents a 12.47% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 5.60% of the stock is currently owned by insiders.

Grocery Outlet Profile

Grocery Outlet Holding Corp. operates a network of independently operated, extreme-value grocery stores in the United States. The company offers a rotating selection of branded and private-label products at discounted prices, including groceries, fresh produce, meat, dairy, frozen foods, beverages, snacks, household goods and health and beauty products.

Its merchandising model is based on opportunistic buying, allowing Grocery Outlet to purchase surplus inventory, packaging changes, discontinued products and other bargains from manufacturers and distributors.

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