Grocery Outlet Holding Corp. $GO is Rip Road Capital Partners LP's 2nd Largest Position

Key Points

• Rip Road Capital Partners LP increased its stake in Grocery Outlet Holding Corp. by 33.9%, owning 707,900 shares which represent about 10.9% of its portfolio.
• Other institutional investors, including T. Rowe Price Investment Management Inc., significantly increased their holdings, with T. Rowe Price growing its position by 1,577.2% in the first quarter.
• Grocery Outlet reported earnings of $0.23 EPS for the last quarter, exceeding expectations, while its revenue increased by 4.5% compared to the previous year.

Rip Road Capital Partners LP grew its holdings in shares of Grocery Outlet Holding Corp. (NASDAQ:GO - Free Report) by 33.9% during the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 707,900 shares of the company's stock after buying an additional 179,300 shares during the quarter. Grocery Outlet accounts for about 10.9% of Rip Road Capital Partners LP's investment portfolio, making the stock its 2nd biggest position. Rip Road Capital Partners LP owned 0.72% of Grocery Outlet worth $9,896,000 at the end of the most recent quarter.

A number of other large investors have also recently modified their holdings of the company. US Bancorp DE boosted its holdings in shares of Grocery Outlet by 64.2% in the first quarter. US Bancorp DE now owns 3,024 shares of the company's stock valued at $42,000 after purchasing an additional 1,182 shares during the period. Red Spruce Capital LLC boosted its holdings in shares of Grocery Outlet by 1.6% in the first quarter. Red Spruce Capital LLC now owns 132,968 shares of the company's stock valued at $1,859,000 after purchasing an additional 2,044 shares during the period. Rafferty Asset Management LLC boosted its holdings in shares of Grocery Outlet by 14.3% in the first quarter. Rafferty Asset Management LLC now owns 25,165 shares of the company's stock valued at $352,000 after purchasing an additional 3,158 shares during the period. GAMMA Investing LLC boosted its holdings in shares of Grocery Outlet by 236.0% in the first quarter. GAMMA Investing LLC now owns 5,188 shares of the company's stock valued at $73,000 after purchasing an additional 3,644 shares during the period. Finally, Price T Rowe Associates Inc. MD boosted its holdings in shares of Grocery Outlet by 6.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 60,454 shares of the company's stock valued at $944,000 after purchasing an additional 3,745 shares during the period. Hedge funds and other institutional investors own 99.87% of the company's stock.

Insider Activity at Grocery Outlet

In other news, EVP Steven K. Wilson sold 5,000 shares of the stock in a transaction 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 sale, the executive vice president owned 141,923 shares in the company, valued at approximately $2,588,675.52. This represents a 3.40% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 4.50% of the company's stock.

Grocery Outlet Stock Down 1.8%

NASDAQ GO traded down $0.33 during midday trading on Tuesday, hitting $17.56. 3,591,416 shares of the company traded hands, compared to its average volume of 2,271,344. 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 company has a market cap of $1.72 billion, a PE ratio of 250.89, a price-to-earnings-growth ratio of 3.85 and a beta of 0.32. The company's 50-day simple moving average is $15.85 and its 200-day simple moving average is $14.48. Grocery Outlet Holding Corp. has a 52 week low of $10.26 and a 52 week high of $21.67.

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, beating the consensus estimate of $0.17 by $0.06. The business had revenue of $1.18 billion for the quarter, compared to analysts' expectations of $1.20 billion. Grocery Outlet had a return on equity of 6.34% and a net margin of 0.18%.The business's revenue for the quarter was up 4.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.25 EPS. Grocery Outlet has set its FY 2025 guidance at 0.750-0.800 EPS. As a group, equities research analysts forecast that Grocery Outlet Holding Corp. will post 0.63 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on GO shares. 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. Morgan Stanley upgraded Grocery Outlet from an "underweight" rating to an "equal weight" rating and boosted their price target for the company from $13.00 to $16.00 in a report on Wednesday, August 6th. Finally, Craig Hallum upgraded Grocery Outlet from a "hold" rating to a "buy" rating and set a $17.00 price target for the company in a report on Wednesday, August 6th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Grocery Outlet has a consensus rating of "Hold" and a consensus target price of $16.08.

About Grocery Outlet

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.