Grocery Outlet Holding Corp. (NASDAQ:GO) Given Consensus Rating of "Reduce" by Brokerages

Key Points

• Analyst consensus "Reduce": Thirteen brokerages cover Grocery Outlet (2 sell, 11 hold) with an average 12‑month price target of $10.68, and multiple firms have recently cut ratings and price targets (e.g., Morgan Stanley to $7).
• Q4 miss and large write‑downs: The company missed EPS and revenue expectations, recorded $113.8M in long‑lived asset and $149.0M in goodwill impairments plus $45.9M of restructuring charges, contributing to a FY2025 net loss of $224.9M and plans to close 36 stores while guiding FY2026 EPS to $0.45–$0.55.
• Legal and operational risk: Shareholder investigations, weakening comps, and deteriorating customer value perception have prompted analyst downgrades and add material uncertainty to the recovery outlook.

Grocery Outlet Holding Corp. (NASDAQ:GO - Get Free Report) has earned a consensus recommendation of "Reduce" from the thirteen ratings firms that are currently covering the company, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $10.6818.

GO has been the topic of a number of recent research reports. Zacks Research lowered shares of Grocery Outlet from a "strong-buy" rating to a "hold" rating in a report on Friday, November 14th. Deutsche Bank Aktiengesellschaft set a $11.00 price target on shares of Grocery Outlet in a report on Thursday, January 8th. Morgan Stanley cut their price objective on shares of Grocery Outlet from $11.00 to $7.00 and set an "equal weight" rating for the company in a research report on Thursday. UBS Group restated a "neutral" rating and set a $11.50 target price on shares of Grocery Outlet in a research report on Thursday, December 18th. Finally, DA Davidson set a $8.00 target price on shares of Grocery Outlet in a research note on Thursday.

Hedge Funds Weigh In On Grocery Outlet

Several institutional investors have recently added to or reduced their stakes in the business. PNC Financial Services Group Inc. lifted its position in Grocery Outlet by 32.3% during the second quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company's stock worth $37,000 after buying an additional 719 shares during the period. Thrivent Financial for Lutherans increased its stake in shares of Grocery Outlet by 1.0% during the 2nd quarter. Thrivent Financial for Lutherans now owns 72,087 shares of the company's stock valued at $895,000 after acquiring an additional 739 shares during the last quarter. Bank of Montreal Can increased its stake in shares of Grocery Outlet by 5.1% during the 2nd quarter. Bank of Montreal Can now owns 16,525 shares of the company's stock valued at $205,000 after acquiring an additional 803 shares during the last quarter. Amalgamated Bank lifted its holdings in shares of Grocery Outlet by 3.5% during the 3rd quarter. Amalgamated Bank now owns 28,875 shares of the company's stock worth $463,000 after acquiring an additional 967 shares during the period. Finally, Natixis Advisors LLC lifted its holdings in shares of Grocery Outlet by 5.5% during the 3rd quarter. Natixis Advisors LLC now owns 30,320 shares of the company's stock worth $487,000 after acquiring an additional 1,591 shares during the period. 99.87% of the stock is currently owned by institutional investors and hedge funds.

Grocery Outlet Stock Performance

Grocery Outlet stock opened at $6.57 on Monday. Grocery Outlet has a fifty-two week low of $6.20 and a fifty-two week high of $19.41. The company has a market capitalization of $644.87 million, a price-to-earnings ratio of -2.87, a PEG ratio of 1.44 and a beta of 0.50. The stock has a fifty day moving average of $9.64 and a two-hundred day moving average of $12.54. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.32 and a current ratio of 1.37.

Grocery Outlet (NASDAQ:GO - Get Free Report) last issued its quarterly earnings data on Wednesday, March 4th. The company reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.02). The company had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.23 billion. Grocery Outlet had a negative net margin of 4.80% and a positive return on equity of 5.93%. The firm's revenue was up 10.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.15 earnings per share. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. On average, analysts anticipate that Grocery Outlet will post 0.63 EPS for the current fiscal year.

Trending Headlines about Grocery Outlet

Here are the key news stories impacting Grocery Outlet this week:

• Positive Sentiment: Grocery Outlet retained Gordon Brothers to market retail leasehold opportunities as part of its store-portfolio optimization, which could recover value from closed or underperforming locations. Gordon Brothers Retained by Grocery Outlet
• Neutral Sentiment: Management set FY2026 EPS guidance (about $0.45–$0.55), giving a baseline for expectations but signaling a recovery path that will depend on fixing value perception and comp trends. Q4 2025 earnings call transcript
• Negative Sentiment: Q4 results missed expectations: EPS of $0.19 vs. $0.21 estimate, revenue slightly below estimates, comps weakened. Management reported a large operating loss driven by $113.8M long‑lived asset impairment, $149.0M goodwill impairment and $45.9M of restructuring charges — contributing to a FY2025 net loss (reported coverage highlights these write‑downs). Investor Alert / Impairment Details
• Negative Sentiment: Company announced plans to close 36 stores after a $224.9M FY2025 net loss — a sign management is accelerating portfolio cuts but also acknowledging execution and merchandising issues that hurt traffic and margins. Grocery Outlet To Close 36 Stores
• Negative Sentiment: Multiple brokerages cut ratings and price targets (Jefferies, Morgan Stanley, Wells Fargo, DA Davidson, Telsey, Craig Hallum), citing the downbeat quarter, weaker comps and the need to restore value perception — analyst downgrades amplify selling pressure. Analysts Slash Forecasts After Q4
• Negative Sentiment: Shareholder‑side investigations have been announced (multiple firms), alleging possible misstatements around financials and operations — legal risk and potential disclosures add uncertainty. Ademi LLP Investigation
• Negative Sentiment: Market commentary and analysis point to weakening customer perception of value, increased promotional activity and competitive pressure — all factors that suggest the recovery could be prolonged. Why Grocery Outlet Stock Crashed Today

Grocery Outlet Company Profile

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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