Grab (NASDAQ:GRAB) Announces Quarterly Earnings Results

Key Points

• Grab reported quarterly EPS of $0.06, exceeding analysts’ consensus estimate of $0.02 by $0.04. The company posted a 10.67% net margin and 5.79% return on equity.
• Shares rose to $3.67, while analysts maintained a generally positive outlook: Grab has a “Moderate Buy” consensus rating and an average price target of $6.01.
• Insiders sold 1.63 million shares worth approximately $5.95 million over the past 90 days, including a 400,000-share sale by CEO Anthony Tan; institutional investors own 55.52% of the stock.

Grab (NASDAQ:GRAB - Get Free Report) announced its earnings results on Monday. The company reported $0.06 EPS for the quarter, beating analysts' consensus estimates of $0.02 by $0.04, Zacks reports. Grab had a return on equity of 5.79% and a net margin of 10.67%.

Grab Price Performance

Shares of Grab stock traded up $0.17 on Monday, hitting $3.67. 65,165,633 shares of the company were exchanged, compared to its average volume of 50,498,773. The company has a quick ratio of 1.65, a current ratio of 1.67 and a debt-to-equity ratio of 0.06. The company has a 50-day moving average price of $3.57 and a 200 day moving average price of $3.84. The stock has a market capitalization of $15.04 billion, a price-to-earnings ratio of 367.37, a price-to-earnings-growth ratio of 1.34 and a beta of 0.89. Grab has a 1-year low of $3.18 and a 1-year high of $6.62.

Analyst Ratings Changes

A number of brokerages have recently issued reports on GRAB. Weiss Ratings raised Grab from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, May 6th. China Renaissance raised Grab from a "hold" rating to a "buy" rating and set a $5.00 price objective for the company in a research note on Wednesday, May 6th. Morgan Stanley restated an "overweight" rating and issued a $6.25 price objective on shares of Grab in a report on Tuesday, June 30th. JPMorgan Chase & Co. lowered their target price on shares of Grab from $5.90 to $5.80 and set an "overweight" rating on the stock in a research note on Tuesday, May 5th. Finally, Mizuho dropped their target price on shares of Grab from $7.00 to $6.00 and set an "outperform" rating for the company in a report on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $6.01.

Insider Transactions at Grab

In other Grab news, insider Philipp Wolfgang Josef Kandal sold 30,000 shares of the business's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $3.53, for a total transaction of $105,900.00. Following the transaction, the insider owned 4,065,430 shares of the company's stock, valued at approximately $14,350,967.90. The trade was a 0.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony Ping Yeow Tan sold 400,000 shares of the company's stock in a transaction on Friday, July 10th. The shares were sold at an average price of $3.91, for a total value of $1,564,000.00. Following the completion of the sale, the chief executive officer owned 28,498 shares of the company's stock, valued at approximately $111,427.18. The trade was a 93.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,628,093 shares of company stock valued at $5,946,901. 3.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Grab

A number of hedge funds have recently modified their holdings of GRAB. Vontobel Holding Ltd. increased its holdings in shares of Grab by 50.3% during the 4th quarter. Vontobel Holding Ltd. now owns 205,824 shares of the company's stock worth $1,027,000 after buying an additional 68,890 shares during the last quarter. Ossiam grew its position in Grab by 248.3% in the third quarter. Ossiam now owns 153,250 shares of the company's stock worth $923,000 after acquiring an additional 109,250 shares during the period. Adalta Capital Management LLC grew its position in Grab by 2.2% in the third quarter. Adalta Capital Management LLC now owns 100,880 shares of the company's stock worth $607,000 after acquiring an additional 2,200 shares during the period. Central Asset Investments & Management Holdings HK Ltd acquired a new stake in Grab during the third quarter worth $283,000. Finally, Orion Porfolio Solutions LLC increased its stake in Grab by 62.7% during the fourth quarter. Orion Porfolio Solutions LLC now owns 36,562 shares of the company's stock worth $182,000 after acquiring an additional 14,084 shares during the last quarter. Hedge funds and other institutional investors own 55.52% of the company's stock.

Grab Company Profile

Grab Holdings Inc is a Singapore-based technology company that operates a consumer-facing "super app" across Southeast Asia offering services spanning ride-hailing, food and package delivery, and digital payments. Its platform connects consumers, drivers, merchants and delivery partners through mobile applications and supports on-demand mobility (taxi and private car), last-mile logistics, and on-demand food delivery under brands such as GrabFood and GrabExpress. The company has also developed a merchant-facing ecosystem that supports ordering, payment acceptance and loyalty functions.

Beyond transportation and delivery, Grab has expanded into financial services through Grab Financial Group, which provides digital payments via GrabPay, consumer lending, insurance distribution and small-business financial solutions.

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