Bank of New York Mellon Corp Makes New $5.50 Million Investment in Grocery Outlet Holding Corp. $GO

Key Points

• Bank of New York Mellon initiated a $5.5 million position in Grocery Outlet, purchasing 551,144 shares, or about 0.56% of the company. Institutional investors and hedge funds collectively own 99.87% of the stock.
• Grocery Outlet exceeded quarterly expectations, reporting $0.20 in adjusted earnings per share versus the $0.13 consensus estimate and $1.19 billion in revenue. Revenue increased 1.1% year over year, though the company posted a negative net margin of 8.04%.
• Analysts remain cautious, with a consensus rating of “Reduce” and an average price target of $10.59, while company insiders bought 38,000 shares worth approximately $403,900 over the past three months.

Bank of New York Mellon Corp bought a new position in Grocery Outlet Holding Corp. (NASDAQ:GO - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 551,144 shares of the company's stock, valued at approximately $5,500,000. Bank of New York Mellon Corp owned about 0.56% of Grocery Outlet at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. Aster Capital Management DIFC Ltd boosted its position in Grocery Outlet by 1,030.4% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company's stock valued at $26,000 after buying an additional 2,308 shares in the last quarter. Kestra Advisory Services LLC acquired a new position in shares of Grocery Outlet during the fourth quarter worth $35,000. State of Wyoming lifted its stake in shares of Grocery Outlet by 96.9% in the 4th quarter. State of Wyoming now owns 7,886 shares of the company's stock valued at $80,000 after acquiring an additional 3,880 shares during the last quarter. GAMMA Investing LLC lifted its stake in shares of Grocery Outlet by 165.9% in the 2nd quarter. GAMMA Investing LLC now owns 8,599 shares of the company's stock valued at $86,000 after acquiring an additional 5,365 shares during the last quarter. Finally, Olympiad Research LP acquired a new stake in shares of Grocery Outlet during the 4th quarter valued at $101,000. 99.87% of the stock is currently owned by institutional investors and hedge funds.

Grocery Outlet Price Performance

Shares of GO opened at $12.38 on Friday. Grocery Outlet Holding Corp. has a 12-month low of $5.66 and a 12-month high of $18.35. The business's fifty day moving average is $10.41 and its 200 day moving average is $8.87. The company has a quick ratio of 0.30, a current ratio of 1.29 and a debt-to-equity ratio of 0.60. The stock has a market cap of $1.23 billion, a P/E ratio of -3.20, a P/E/G ratio of 8.55 and a beta of 0.72.

Grocery Outlet (NASDAQ:GO - Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The company reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.07. Grocery Outlet had a negative net margin of 8.04% and a positive return on equity of 5.84%. The business had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter last year, the firm posted $0.23 EPS. Grocery Outlet's revenue was up 1.1% compared to the same quarter last year. Sell-side analysts anticipate that Grocery Outlet Holding Corp. will post 0.42 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on GO shares. UBS Group increased their target price on Grocery Outlet from $10.00 to $11.50 and gave the company a "neutral" rating in a research report on Monday, August 17th. Morgan Stanley upped their price objective on Grocery Outlet from $7.00 to $11.00 and gave the company an "equal weight" rating in a research note on Thursday, August 13th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $9.00 price objective on shares of Grocery Outlet in a report on Thursday, August 13th. Telsey Advisory Group reiterated a "market perform" rating on shares of Grocery Outlet in a research report on Thursday, August 13th. Finally, TD Cowen reissued a "hold" rating on shares of Grocery Outlet in a report on Tuesday, August 18th. Twelve research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Reduce" and a consensus price target of $10.59.

Insider Activity

In other Grocery Outlet news, insider Paul Miller purchased 8,000 shares of the company's stock in a transaction that occurred on Thursday, August 20th. The shares were acquired at an average price of $10.90 per share, with a total value of $87,200.00. Following the transaction, the insider owned 72,171 shares in the company, valued at $786,663.90. The trade was a 12.47% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Carey Jaros purchased 15,000 shares of the business's stock in a transaction on Thursday, August 27th. The shares were bought at an average price of $11.70 per share, with a total value of $175,500.00. Following the purchase, the director directly owned 60,000 shares in the company, valued at approximately $702,000. The trade was a 33.33% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have bought 38,000 shares of company stock valued at $403,900. 5.60% of the stock is currently owned by insiders.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. NASDAQ: GO is a specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. Headquartered in Emeryville, California, the company operates two primary banners—Grocery Outlet and Fresh2Go—with a combined footprint of more than 400 stores. Its product assortment spans fresh produce, meat, dairy, bakery items, household staples, natural and organic offerings, and select specialty products, all sold at significant markdowns compared to conventional supermarkets.

The company's unique buying model enables it to source inventory through opportunistic purchases of surplus freight, discontinued items, and closeout deals, which it then passes on as savings to its customers.

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