Grab (NASDAQ:GRAB) Shares Gap Up - Time to Buy?

Key Points

• Grab shares gapped up pre-market from $4.39 to $4.58 and were last trading around $4.46 on heavy volume (~17.9M shares), reflecting a short-term uptick in demand.
• Wall Street is broadly positive with a consensus rating of Moderate Buy and a consensus target of $6.58; several firms (Mizuho, Barclays, Jefferies, Benchmark) have set $7.00 price targets and six analysts rate the stock a Buy versus two Holds.
• Fundamentals show low leverage (debt-to-equity 0.05) and solid liquidity (quick ratio 1.81), but a high valuation (P/E ~111.7) and modest profitability — last quarter EPS of $0.01 missed estimates while revenue roughly matched expectations and net margin was 3.8%.

Grab Holdings Limited (NASDAQ:GRAB - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $4.39, but opened at $4.58. Grab shares last traded at $4.4550, with a volume of 17,933,523 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on GRAB shares. Mizuho set a $7.00 price objective on Grab in a research note on Tuesday, November 4th. Barclays increased their target price on shares of Grab from $6.50 to $7.00 and gave the stock an "overweight" rating in a report on Tuesday, November 11th. Jefferies Financial Group reaffirmed a "buy" rating and set a $7.00 price target on shares of Grab in a report on Tuesday, November 4th. Benchmark increased their price objective on shares of Grab from $6.00 to $7.00 and gave the company a "buy" rating in a research note on Tuesday, November 4th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Grab in a research report on Wednesday, October 8th. Six analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, Grab presently has a consensus rating of "Moderate Buy" and a consensus target price of $6.58.

Grab Stock Up 1.7%

The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.81 and a current ratio of 1.83. The stock's fifty day simple moving average is $5.16 and its two-hundred day simple moving average is $5.37. The stock has a market capitalization of $17.98 billion, a P/E ratio of 111.65 and a beta of 0.90.

Grab (NASDAQ:GRAB - Get Free Report) last issued its quarterly earnings data on Tuesday, November 4th. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.03 by ($0.02). The business had revenue of $873.00 million during the quarter, compared to the consensus estimate of $870.44 million. Grab had a return on equity of 1.91% and a net margin of 3.81%. As a group, research analysts expect that Grab Holdings Limited will post 0.05 EPS for the current fiscal year.

Institutional Trading of Grab

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in shares of Grab in the 2nd quarter worth approximately $175,192,000. Assenagon Asset Management S.A. raised its stake in Grab by 173.3% during the fourth quarter. Assenagon Asset Management S.A. now owns 34,753,836 shares of the company's stock worth $173,422,000 after buying an additional 22,038,961 shares during the last quarter. Citigroup Inc. lifted its holdings in Grab by 112.6% in the third quarter. Citigroup Inc. now owns 32,398,782 shares of the company's stock valued at $195,041,000 after buying an additional 17,160,661 shares during the period. Invesco Ltd. lifted its holdings in Grab by 24.9% in the third quarter. Invesco Ltd. now owns 79,797,848 shares of the company's stock valued at $480,383,000 after buying an additional 15,916,063 shares during the period. Finally, JPMorgan Chase & Co. boosted its position in Grab by 20.8% during the second quarter. JPMorgan Chase & Co. now owns 60,455,589 shares of the company's stock valued at $304,092,000 after acquiring an additional 10,428,014 shares during the last quarter. Institutional investors and hedge funds 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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