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

Key Points

• Analyst sentiment is bearish: 13 brokerages give Grocery Outlet a consensus "Reduce" rating with an average 1‑year price target of $10.68, and several firms recently cut targets (e.g., Wells Fargo to $7, Telsey to $9, Goldman to $9).
• Significant insider buying despite downgrades: Directors Carey Jaros and Erik Ragatz bought 40,000 and 50,000 shares at roughly $6.26 and $5.75, and insiders net acquired 899,905 shares (~$5.4M) over the past 90 days while selling ~89,493 shares.
• Recent results missed expectations (Q reported EPS $0.19 vs. $0.21 and revenue $1.22B vs. $1.23B), the company offered FY2026 EPS guidance of $0.45–$0.55, and the stock trades around $7.22 with a 52‑week range of $5.66–$19.41 (market cap ~$709M).

Shares of Grocery Outlet Holding Corp. (NASDAQ:GO - Get Free Report) have earned a consensus rating of "Reduce" from the thirteen ratings firms that are currently covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $10.6818.

GO has been the topic of several analyst reports. Wells Fargo & Company lowered their price objective on Grocery Outlet from $10.50 to $7.00 and set an "equal weight" rating on the stock in a research note on Thursday, March 5th. Telsey Advisory Group downgraded Grocery Outlet from an "outperform" rating to a "market perform" rating and cut their target price for the stock from $15.00 to $9.00 in a research report on Thursday, March 5th. TD Cowen reiterated a "hold" rating on shares of Grocery Outlet in a research report on Thursday, March 5th. Craig Hallum lowered Grocery Outlet from a "strong-buy" rating to a "hold" rating in a research note on Thursday, March 5th. Finally, The Goldman Sachs Group cut their price objective on Grocery Outlet from $12.00 to $9.00 and set a "sell" rating for the company in a report on Thursday, February 19th.

Insider Buying and Selling at Grocery Outlet

In other news, Director Carey F. Jaros acquired 40,000 shares of the firm's stock in a transaction on Tuesday, March 10th. The shares were purchased at an average cost of $6.26 per share, with a total value of $250,400.00. Following the completion of the purchase, the director owned 76,066 shares of the company's stock, valued at $476,173.16. This represents a 110.91% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Erik D. Ragatz acquired 50,000 shares of the company's stock in a transaction dated Thursday, March 19th. The shares were purchased at an average cost of $5.75 per share, with a total value of $287,500.00. Following the acquisition, the director owned 526,500 shares of the company's stock, valued at approximately $3,027,375. This represents a 10.49% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have acquired 899,905 shares of company stock worth $5,396,307 and have sold 89,493 shares worth $524,431. Company insiders own 4.50% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Bayforest Capital Ltd acquired a new stake in Grocery Outlet during the 3rd quarter valued at $29,000. Hantz Financial Services Inc. boosted its stake in Grocery Outlet by 591.5% in the third quarter. Hantz Financial Services Inc. now owns 2,033 shares of the company's stock worth $33,000 after purchasing an additional 1,739 shares in the last quarter. Aster Capital Management DIFC Ltd grew its holdings in shares of Grocery Outlet by 1,030.4% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company's stock worth $26,000 after purchasing an additional 2,308 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Grocery Outlet during the fourth quarter worth $35,000. Finally, PNC Financial Services Group Inc. increased its stake in shares of Grocery Outlet by 62.7% in the third quarter. PNC Financial Services Group Inc. now owns 4,788 shares of the company's stock valued at $77,000 after buying an additional 1,846 shares in the last quarter. 99.87% of the stock is owned by institutional investors and hedge funds.

Grocery Outlet Trading Up 4.8%

Shares of GO stock opened at $7.22 on Friday. Grocery Outlet has a 52-week low of $5.66 and a 52-week high of $19.41. The stock has a market cap of $708.64 million, a price-to-earnings ratio of -3.15, a P/E/G ratio of 2.01 and a beta of 0.63. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.32 and a current ratio of 1.37. The firm has a fifty day moving average of $8.39 and a 200-day moving average of $11.07.

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

About Grocery Outlet

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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