Hsbc Holdings PLC Acquires New Position in Grocery Outlet Holding Corp. $GO

Key Points

• HSBC Holdings PLC has acquired 40,297 shares of Grocery Outlet Holding Corp. valued at approximately $558,000, marking a significant investment in the company.
• Grocery Outlet reported a net margin of 0.18% and a year-over-year revenue increase of 4.5% in its most recent quarterly earnings results, showing steady financial performance.
• Analysts have varied opinions on Grocery Outlet, with upgrades in ratings and target prices from firms like Morgan Stanley and Wells Fargo, indicating a generally positive outlook for the stock.

Hsbc Holdings PLC bought a new position in Grocery Outlet Holding Corp. (NASDAQ:GO - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 40,297 shares of the company's stock, valued at approximately $558,000.

A number of other hedge funds have also recently made changes to their positions in GO. 111 Capital purchased a new stake in Grocery Outlet during the 4th quarter valued at about $207,000. D.A. Davidson & CO. bought a new position in shares of Grocery Outlet in the first quarter worth approximately $165,000. Hussman Strategic Advisors Inc. purchased a new position in shares of Grocery Outlet in the first quarter worth $881,000. New York State Common Retirement Fund raised its holdings in Grocery Outlet by 49.4% during the 1st quarter. New York State Common Retirement Fund now owns 131,983 shares of the company's stock valued at $1,845,000 after buying an additional 43,633 shares during the last quarter. Finally, Deutsche Bank AG boosted its position in Grocery Outlet by 834.3% during the 4th quarter. Deutsche Bank AG now owns 103,122 shares of the company's stock valued at $1,610,000 after buying an additional 92,085 shares during the period. 99.87% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Grocery Outlet

In related news, EVP Steven K. Wilson sold 5,000 shares of the firm's stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $18.24, for a total transaction of $91,200.00. Following the completion of the transaction, 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 filing with the Securities & Exchange Commission, which is available at this hyperlink. 4.50% of the stock is owned by insiders.

Grocery Outlet Stock Up 0.2%

NASDAQ:GO opened at $18.11 on Monday. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.21 and a quick ratio of 0.25. The firm's 50-day moving average price is $15.14 and its 200-day moving average price is $14.37. The company has a market capitalization of $1.78 billion, a PE ratio of 258.75, a P/E/G ratio of 3.96 and a beta of 0.32. Grocery Outlet Holding Corp. has a 1-year low of $10.26 and a 1-year high of $21.67.

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

Wall Street Analyst Weigh In

GO has been the subject of several recent analyst reports. Craig Hallum raised shares of Grocery Outlet from a "hold" rating to a "buy" rating and set a $17.00 price objective for the company in a research note on Wednesday, August 6th. Morgan Stanley upgraded Grocery Outlet from an "underweight" rating to an "equal weight" rating and increased their price objective for the stock from $13.00 to $16.00 in a report on Wednesday, August 6th. Wells Fargo & Company upped their target price on Grocery Outlet from $18.00 to $19.00 and gave the company an "overweight" rating in a report on Wednesday, May 7th. Telsey Advisory Group reiterated a "market perform" rating and issued a $16.00 price target on shares of Grocery Outlet in a report on Wednesday, August 6th. Finally, UBS Group raised their target price on shares of Grocery Outlet from $14.50 to $17.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 7th. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Grocery Outlet currently has a consensus rating of "Hold" and a consensus target price of $16.08.

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.

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