Grocery Outlet Holding Corp. (NASDAQ:GO) Receives Average Rating of "Reduce" from Brokerages

Key Points

• Analysts rate Grocery Outlet a "Reduce" — 13 brokerages cover the stock (2 sell, 11 hold) with an average 1‑year price target of $10.68, and major firms including Goldman Sachs, Wells Fargo and Jefferies recently cut targets and ratings.
• Notable insider activity: Director Erik D. Ragatz bought 50,000 shares at $5.75 on March 19, and insiders net purchased 899,905 shares (~$5.4M) versus selling 89,493 (~$524k) in the last 90 days, leaving insiders with 4.5% ownership.
• Recent results and outlook: Q reported EPS of $0.19 (missed $0.21) and revenue of $1.22B (slightly below expectations), with a negative net margin of 4.8%; the company set FY2026 guidance of $0.45–$0.55 EPS while sell‑side forecasts ~ $0.38 for the current year.

Grocery Outlet Holding Corp. (NASDAQ:GO - Get Free Report) has been given a consensus recommendation of "Reduce" by the thirteen brokerages that are covering the company, MarketBeat.com reports. Two research analysts have rated the stock with a sell recommendation and eleven have given a hold recommendation to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $10.6818.

A number of research analysts recently issued reports on GO shares. The Goldman Sachs Group reduced their price target on Grocery Outlet from $12.00 to $9.00 and set a "sell" rating on the stock in a report on Thursday, February 19th. Wells Fargo & Company cut their price objective on Grocery Outlet from $10.50 to $7.00 and set an "equal weight" rating on the stock in a research report on Thursday, March 5th. DA Davidson set a $8.00 price objective on Grocery Outlet in a research report on Thursday, March 5th. Jefferies Financial Group reaffirmed a "hold" rating and set a $7.00 price objective (down from $18.00) on shares of Grocery Outlet in a research report on Thursday, March 5th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Grocery Outlet in a research report on Thursday, January 22nd.

Insider Buying and Selling at Grocery Outlet

In other news, Director Erik D. Ragatz acquired 50,000 shares of the business's stock in a transaction on Thursday, March 19th. The shares were acquired at an average cost of $5.75 per share, with a total value of $287,500.00. Following the transaction, the director owned 526,500 shares in the company, valued at $3,027,375. The trade was a 10.49% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Steven K. Wilson sold 4,721 shares of Grocery Outlet stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $6.06, for a total value of $28,609.26. Following the sale, the executive vice president directly owned 120,171 shares in the company, valued at approximately $728,236.26. The trade was a 3.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders purchased 899,905 shares of company stock worth $5,396,307 and sold 89,493 shares worth $524,431. Insiders own 4.50% of the company's stock.

Institutional Trading of Grocery Outlet

Hedge funds have recently made changes to their positions in the stock. Bayforest Capital Ltd bought a new stake in shares of Grocery Outlet in the 3rd quarter worth approximately $29,000. Hantz Financial Services Inc. boosted its position in shares of Grocery Outlet by 591.5% in the 3rd 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 boosted its position in shares of Grocery Outlet by 1,030.4% in the 4th 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 in the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Grocery Outlet in the 4th quarter worth approximately $35,000. Finally, PNC Financial Services Group Inc. boosted its position in shares of Grocery Outlet by 62.7% in the 3rd quarter. PNC Financial Services Group Inc. now owns 4,788 shares of the company's stock worth $77,000 after purchasing an additional 1,846 shares in the last quarter. 99.87% of the stock is owned by institutional investors.

Grocery Outlet Stock Up 2.6%

Shares of NASDAQ:GO opened at $8.01 on Tuesday. Grocery Outlet has a 1 year low of $5.66 and a 1 year high of $19.41. The company has a market cap of $792.35 million, a PE ratio of -3.50, a P/E/G ratio of 2.28 and a beta of 0.63. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.37 and a quick ratio of 0.32. The stock's 50-day moving average is $7.57 and its 200 day moving average is $9.96.

Grocery Outlet (NASDAQ:GO - Get Free Report) last announced its quarterly earnings results on Wednesday, March 4th. The company reported $0.19 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.21 by ($0.02). Grocery Outlet had a negative net margin of 4.80% and a positive return on equity of 5.93%. The business had revenue of $1.22 billion for the quarter, compared to analysts' expectations of $1.23 billion. During the same quarter in the prior year, the firm earned $0.15 EPS. The firm's revenue for the quarter was up 10.7% on a year-over-year basis. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Sell-side analysts anticipate that Grocery Outlet will post 0.38 EPS for the current year.

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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