Van Berkom & Associates Inc. Trims Stock Holdings in Grocery Outlet Holding Corp. $GO

Key Points

• Van Berkom & Associates sharply cut its stake in Grocery Outlet Holding Corp. by 97% in the first quarter, selling more than 3.7 million shares and leaving it with 113,962 shares worth about $803,000.
• Other institutional activity was mixed, but hedge funds and other institutions still own 99.87% of the company, while insider Paul Blaine Miller bought 5,000 shares at $9.50 each in late June.
• Analysts remain cautious: the stock has a consensus rating of “Reduce” with a $10.32 average price target, even as Grocery Outlet recently beat earnings estimates and posted $1.17 billion in quarterly revenue.

Van Berkom & Associates Inc. decreased its position in Grocery Outlet Holding Corp. (NASDAQ:GO - Free Report) by 97.0% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 113,962 shares of the company's stock after selling 3,722,689 shares during the quarter. Van Berkom & Associates Inc. owned approximately 0.12% of Grocery Outlet worth $803,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Royal Bank of Canada grew its position in shares of Grocery Outlet by 5.8% in the 1st quarter. Royal Bank of Canada now owns 122,565 shares of the company's stock worth $1,713,000 after buying an additional 6,736 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Grocery Outlet by 14.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 357,856 shares of the company's stock valued at $5,003,000 after acquiring an additional 44,214 shares during the period. Creative Planning boosted its stake in Grocery Outlet by 25.4% during the second quarter. Creative Planning now owns 16,104 shares of the company's stock worth $200,000 after acquiring an additional 3,263 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in Grocery Outlet by 13.8% during the second quarter. JPMorgan Chase & Co. now owns 220,432 shares of the company's stock worth $2,738,000 after acquiring an additional 26,725 shares in the last quarter. Finally, Franklin Resources Inc. bought a new stake in Grocery Outlet during the second quarter worth about $149,000. Hedge funds and other institutional investors own 99.87% of the company's stock.

Insider Buying and Selling

In other Grocery Outlet news, insider Paul Blaine Miller bought 5,000 shares of Grocery Outlet stock in a transaction on Thursday, June 25th. The stock was acquired at an average price of $9.50 per share, with a total value of $47,500.00. Following the acquisition, the insider owned 64,171 shares in the company, valued at approximately $609,624.50. This trade represents a 8.45% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 4.50% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have weighed in on GO shares. DA Davidson raised their target price on shares of Grocery Outlet from $7.00 to $9.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. Wells Fargo & Company boosted their price target on Grocery Outlet from $7.00 to $9.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 14th. Weiss Ratings upgraded Grocery Outlet from a "sell (d-)" rating to a "sell (d)" rating in a research note on Tuesday, July 14th. Finally, TD Cowen upped their price target on Grocery Outlet from $6.00 to $8.00 and gave the stock a "hold" rating in a research note on Thursday, May 14th. Eleven 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 currently has a consensus rating of "Reduce" and a consensus price target of $10.32.

Grocery Outlet Stock Performance

Shares of NASDAQ GO opened at $9.44 on Monday. The firm's 50 day moving average price is $9.07 and its 200-day moving average price is $8.65. Grocery Outlet Holding Corp. has a 52-week low of $5.66 and a 52-week high of $19.41. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.27 and a current ratio of 1.28. The company has a market cap of $933.80 million, a PE ratio of -2.43, a P/E/G ratio of 14.61 and a beta of 0.64.

Grocery Outlet (NASDAQ:GO - Get Free Report) last announced its quarterly earnings results on Wednesday, May 13th. The company reported $0.05 earnings per share for the quarter, beating the consensus estimate of $0.02 by $0.03. Grocery Outlet had a negative net margin of 8.08% and a positive return on equity of 5.69%. The company had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.15 billion. During the same quarter last year, the firm earned $0.13 earnings per share. The firm's quarterly revenue was up 3.6% compared to the same quarter last year. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. On average, equities research analysts expect that Grocery Outlet Holding Corp. will post 0.38 EPS for the current fiscal year.

About Grocery Outlet

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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