Advantage Alpha Capital Partners LP Acquires 167,016 Shares of Grocery Outlet Holding Corp. $GO

Key Points

• Advantage Alpha Capital Partners LP increased its holdings in Grocery Outlet shares by 56.5% during the first quarter, making the stock its 9th largest position.
• Grocery Outlet reported an EPS of $0.23 for the latest quarter, exceeding analysts' expectations, while its revenue was slightly below consensus estimates at $1.18 billion.
• Analyst ratings have shifted positively, with multiple firms raising target prices, including Wells Fargo, which increased its target from $18.00 to $19.00, indicating a more favorable outlook on Grocery Outlet's performance.

Advantage Alpha Capital Partners LP increased its holdings in Grocery Outlet Holding Corp. (NASDAQ:GO - Free Report) by 56.5% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 462,461 shares of the company's stock after acquiring an additional 167,016 shares during the quarter. Grocery Outlet makes up about 1.6% of Advantage Alpha Capital Partners LP's investment portfolio, making the stock its 9th largest position. Advantage Alpha Capital Partners LP owned approximately 0.47% of Grocery Outlet worth $6,465,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of the company. US Bancorp DE increased its holdings in shares of Grocery Outlet by 64.2% during the first quarter. US Bancorp DE now owns 3,024 shares of the company's stock valued at $42,000 after acquiring an additional 1,182 shares in the last quarter. Integrated Wealth Concepts LLC boosted its position in Grocery Outlet by 9.6% in the 4th quarter. Integrated Wealth Concepts LLC now owns 15,671 shares of the company's stock worth $245,000 after purchasing an additional 1,377 shares in the last quarter. Guggenheim Capital LLC grew its stake in Grocery Outlet by 9.1% in the 4th quarter. Guggenheim Capital LLC now owns 16,955 shares of the company's stock valued at $265,000 after acquiring an additional 1,408 shares during the period. Red Spruce Capital LLC grew its stake in Grocery Outlet by 1.6% in the 1st quarter. Red Spruce Capital LLC now owns 132,968 shares of the company's stock valued at $1,859,000 after acquiring an additional 2,044 shares during the period. Finally, Canada Pension Plan Investment Board lifted its stake in shares of Grocery Outlet by 81.1% in the fourth quarter. Canada Pension Plan Investment Board now owns 6,700 shares of the company's stock worth $105,000 after buying an additional 3,000 shares in the last quarter. 99.87% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Telsey Advisory Group restated a "market perform" rating and set a $16.00 price target on shares of Grocery Outlet in a research report on Wednesday, August 6th. Craig Hallum upgraded shares of Grocery Outlet from a "hold" rating to a "buy" rating and set a $17.00 target price on the stock in a report on Wednesday, August 6th. Wells Fargo & Company boosted their price target on shares of Grocery Outlet from $18.00 to $19.00 and gave the company an "overweight" rating in a research note on Wednesday, May 7th. Morgan Stanley raised shares of Grocery Outlet from an "underweight" rating to an "equal weight" rating and upped their target price for the stock from $13.00 to $16.00 in a research note on Wednesday, August 6th. Finally, UBS Group upped their target price on shares of Grocery Outlet from $14.50 to $17.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 7th. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $16.08.

Grocery Outlet Stock Performance

NASDAQ:GO traded down $0.32 during trading hours on Wednesday, reaching $18.31. 1,249,416 shares of the company's stock were exchanged, compared to its average volume of 3,223,675. Grocery Outlet Holding Corp. has a 1-year low of $10.26 and a 1-year high of $21.67. The firm has a market capitalization of $1.80 billion, a price-to-earnings ratio of 261.62, a P/E/G ratio of 4.06 and a beta of 0.27. The company has a quick ratio of 0.25, a current ratio of 1.21 and a debt-to-equity ratio of 0.38. The company has a 50-day moving average of $14.83 and a 200 day moving average of $14.37.

Grocery Outlet (NASDAQ:GO - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.17 by $0.06. Grocery Outlet had a net margin of 0.18% and a return on equity of 6.34%. The company had revenue of $1.18 billion during the quarter, compared to analysts' expectations of $1.20 billion. During the same quarter in the previous year, the business posted $0.25 earnings per share. The firm's quarterly revenue was up 4.5% compared to the same quarter last year. Grocery Outlet has set its FY 2025 guidance at 0.750-0.800 EPS. Research analysts anticipate that Grocery Outlet Holding Corp. will post 0.63 EPS for the current year.

Insider Buying and Selling at Grocery Outlet

In related news, EVP Steven K. Wilson sold 5,000 shares of the stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $18.24, for a total value of $91,200.00. Following the sale, the executive vice president owned 141,923 shares of the company's stock, valued at $2,588,675.52. This trade represents a 3.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 4.50% of the company's stock.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products.