Grab (NASDAQ:GRAB) Shares Down 5.8% - Should You Sell?

Key Points

• Grab shares fell 5.8% in midday trading, hitting as low as $3.73 and ending near $3.68 on volume well below average.
• Analyst sentiment remains mixed but generally positive: the stock carries a Moderate Buy consensus rating with an average price target of $6.23, though some firms recently trimmed targets or downgraded ratings.
• Grab’s latest earnings showed a small EPS miss at -$0.01 versus a $0.02 estimate, even as revenue came in above expectations at $955 million; insiders also sold shares in recent months.

Grab Holdings Limited (NASDAQ:GRAB - Get Free Report) shares dropped 5.8% during mid-day trading on Monday . The company traded as low as $3.73 and last traded at $3.6750. Approximately 13,140,860 shares were traded during trading, a decline of 74% from the average daily volume of 50,961,258 shares. The stock had previously closed at $3.90.

Analysts Set New Price Targets

GRAB has been the topic of several research analyst reports. Zacks Research upgraded shares of Grab from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 2nd. JPMorgan Chase & Co. decreased their price target on shares of Grab from $5.90 to $5.80 and set an "overweight" rating on the stock in a report on Tuesday, May 5th. China Renaissance upgraded shares of Grab from a "hold" rating to a "buy" rating and set a $5.00 price objective on the stock in a research report on Wednesday, May 6th. Weiss Ratings raised shares of Grab from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, May 6th. Finally, Morgan Stanley reiterated an "overweight" rating and issued a $6.25 target price on shares of Grab in a research report on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $6.23.

Grab Price Performance

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 business's 50-day simple moving average is $3.60 and its 200 day simple moving average is $4.04. The firm has a market capitalization of $15.39 billion, a P/E ratio of 375.88, a PEG ratio of 1.54 and a beta of 0.87.

Grab (NASDAQ:GRAB - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported ($0.01) earnings per share for the quarter, missing analysts' consensus estimates of $0.02 by ($0.03). Grab had a return on equity of 5.79% and a net margin of 10.67%.The business had revenue of $955.00 million during the quarter, compared to the consensus estimate of $921.71 million. Sell-side analysts forecast that Grab Holdings Limited will post 0.1 earnings per share for the current year.

Insider Buying and Selling at Grab

In other Grab news, CFO Peter Henry Oey sold 50,000 shares of the business's stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $3.92, for a total value of $196,000.00. Following the completion of the sale, the chief financial officer directly owned 7,050,165 shares of the company's stock, valued at $27,636,646.80. The trade was a 0.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at 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 dated Monday, June 15th. The shares were sold at an average price of $3.51, for a total transaction of $1,404,000.00. Following the sale, the chief executive officer owned 425,193 shares of the company's stock, valued at approximately $1,492,427.43. The trade was a 48.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,766,093 shares of company stock worth $6,384,921 in the last 90 days. 3.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Grab

Institutional investors and hedge funds have recently bought and sold shares of the stock. Norges Bank bought a new stake in Grab in the fourth quarter valued at approximately $161,484,000. PointState Capital LP raised its holdings in Grab by 411.1% during the 4th quarter. PointState Capital LP now owns 32,555,483 shares of the company's stock valued at $162,452,000 after buying an additional 26,186,329 shares during the last quarter. Marshall Wace LLP raised its holdings in Grab by 49.2% during the 4th quarter. Marshall Wace LLP now owns 72,453,397 shares of the company's stock valued at $361,542,000 after buying an additional 23,891,108 shares during the last quarter. Assenagon Asset Management S.A. boosted its position in Grab by 173.3% during the 4th quarter. Assenagon Asset Management S.A. now owns 34,753,836 shares of the company's stock valued at $173,422,000 after buying an additional 22,038,961 shares during the period. Finally, Invesco Ltd. grew its holdings in Grab by 24.9% in the 3rd quarter. Invesco Ltd. now owns 79,797,848 shares of the company's stock worth $480,383,000 after acquiring an additional 15,916,063 shares during the last quarter. 55.52% of the stock is currently owned by institutional investors.

About Grab

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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