FY2025 EPS Estimates for Grocery Outlet Lifted by Analyst

Key Points

• DA Davidson has raised its FY2025 earnings per share estimate for Grocery Outlet from $0.55 to $0.64, indicating positive growth expectations.
• The company's latest quarterly earnings report showed a net margin of 0.18% and a revenue of $1.18 billion, slightly below analysts' expectations of $1.20 billion.
• Multiple analysts have recently upgraded their ratings on Grocery Outlet, with price targets ranging from $16.00 to $19.00 as of recent research notes.

Grocery Outlet Holding Corp. (NASDAQ:GO - Free Report) - Stock analysts at DA Davidson upped their FY2025 earnings per share estimates for shares of Grocery Outlet in a note issued to investors on Wednesday, August 6th. DA Davidson analyst M. Baker now expects that the company will post earnings per share of $0.64 for the year, up from their prior estimate of $0.55. The consensus estimate for Grocery Outlet's current full-year earnings is $0.63 per share. DA Davidson also issued estimates for Grocery Outlet's FY2026 earnings at $0.89 EPS.

Grocery Outlet (NASDAQ:GO - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $0.23 EPS for the quarter, topping analysts' consensus estimates of $0.17 by $0.06. Grocery Outlet had a return on equity of 6.34% and a net margin of 0.18%. The business had revenue of $1.18 billion for the quarter, compared to analysts' expectations of $1.20 billion. During the same period in the previous year, the firm earned $0.25 EPS. The business's quarterly revenue was up 4.5% on a year-over-year basis.

GO has been the topic of several other reports. Morgan Stanley upgraded Grocery Outlet from an "underweight" rating to an "equal weight" rating and lifted their price target for the company from $13.00 to $16.00 in a research report on Wednesday, August 6th. 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 Grocery Outlet from a "hold" rating to a "buy" rating and set a $17.00 price target on the stock in a research report on Wednesday, August 6th. Jefferies Financial Group upgraded Grocery Outlet from a "hold" rating to a "buy" rating and lifted their price target for the company from $13.00 to $18.00 in a research report on Wednesday, April 16th. Finally, UBS Group lifted their price target on Grocery Outlet from $14.50 to $17.00 and gave the company a "neutral" rating in a research report on Wednesday, May 7th. One analyst has rated the stock with a sell rating, nine have assigned a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, Grocery Outlet presently has a consensus rating of "Hold" and an average price target of $16.08.

Grocery Outlet Trading Up 1.0%

Shares of GO traded up $0.19 during mid-day trading on Friday, hitting $18.41. 1,420,373 shares of the company's stock traded hands, compared to its average volume of 3,282,094. The company has a quick ratio of 0.25, a current ratio of 1.21 and a debt-to-equity ratio of 0.38. Grocery Outlet has a 1 year low of $10.26 and a 1 year high of $21.67. The firm has a market capitalization of $1.81 billion, a P/E ratio of 263.41, a PEG ratio of 4.13 and a beta of 0.27. The business's 50-day moving average price is $13.76 and its 200-day moving average price is $14.23.

Insider Buying and Selling

In other news, EVP Steven K. Wilson sold 20,000 shares of the company's stock in a transaction on Friday, August 8th. The stock was sold at an average price of $19.20, for a total transaction of $384,000.00. Following the transaction, the executive vice president directly owned 146,923 shares of the company's stock, valued at $2,820,921.60. This represents a 11.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 4.50% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Simcoe Capital Management LLC bought a new position in Grocery Outlet in the fourth quarter valued at about $53,185,000. Wellington Management Group LLP bought a new position in Grocery Outlet in the first quarter valued at about $43,509,000. T. Rowe Price Investment Management Inc. lifted its holdings in Grocery Outlet by 1,577.2% in the first quarter. T. Rowe Price Investment Management Inc. now owns 3,262,956 shares of the company's stock valued at $45,617,000 after acquiring an additional 3,068,405 shares during the period. Junto Capital Management LP bought a new position in Grocery Outlet in the fourth quarter valued at about $39,128,000. Finally, Solas Capital Management LLC bought a new position in Grocery Outlet in the first quarter valued at about $13,736,000. 99.87% of the stock is owned by institutional investors.

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.