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

Key Points

• Grocery Outlet has a consensus analyst rating of "Reduce" from 13 brokerages, with two sell ratings and eleven hold ratings. The average 1-year price target is about $10.32.
• The company reported Q1 EPS of $0.05, beating estimates of $0.02, and revenue of $1.17 billion, also above expectations. Revenue rose 3.6% year over year, though net margin remained negative at 8.08%.
• Insider activity has been notable, with CEO Jason J. N. Potter and Director Carey F. Jaros both making substantial stock purchases. Institutional investors continue to hold the vast majority of the stock, at 99.87%.

Shares of Grocery Outlet Holding Corp. (NASDAQ:GO - Get Free Report) have been assigned a consensus rating of "Reduce" from the thirteen research firms that are presently covering the stock, MarketBeat reports. Two research analysts have rated the stock with a sell recommendation and eleven have issued a hold recommendation on the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $10.3182.

Several equities research analysts have issued reports on GO shares. The Goldman Sachs Group dropped their target price on shares of Grocery Outlet from $12.00 to $9.00 and set a "sell" rating for the company in a research report on Thursday, February 19th. DA Davidson lifted their target price on shares of Grocery Outlet from $7.00 to $9.00 and gave the company a "neutral" rating in a research report on Thursday, May 14th. Weiss Ratings lowered shares of Grocery Outlet from a "sell (d)" rating to a "sell (d-)" rating in a research report on Friday, May 15th. Craig Hallum lowered shares of Grocery Outlet from a "strong-buy" rating to a "hold" rating in a research report on Thursday, March 5th. Finally, TD Cowen lifted their target price on shares of Grocery Outlet from $6.00 to $8.00 and gave the company a "hold" rating in a research report on Thursday, May 14th.

Grocery Outlet Price Performance

Shares of NASDAQ:GO opened at $8.02 on Friday. The company has a 50 day moving average of $7.27 and a 200 day moving average of $9.15. The stock has a market cap of $793.34 million, a P/E ratio of -2.07, a P/E/G ratio of 12.59 and a beta of 0.66. Grocery Outlet has a 12 month low of $5.66 and a 12 month high of $19.41. The company has a current ratio of 1.28, a quick ratio of 0.27 and a debt-to-equity ratio of 0.59.

Grocery Outlet (NASDAQ:GO - Get Free Report) last announced its earnings results on Wednesday, May 13th. The company reported $0.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.03. Grocery Outlet had a negative net margin of 8.08% and a positive return on equity of 5.69%. The business had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same period in the previous year, the business posted $0.13 earnings per share. Grocery Outlet's revenue for the quarter was up 3.6% on a year-over-year basis. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. As a group, sell-side analysts forecast that Grocery Outlet will post 0.37 EPS for the current fiscal year.

Insider Buying and Selling at Grocery Outlet

In related news, CEO Jason J. N. Potter bought 110,252 shares of the company's stock in a transaction on Monday, March 23rd. The stock was acquired at an average cost of $6.35 per share, for a total transaction of $700,100.20. Following the completion of the transaction, the chief executive officer directly owned 684,618 shares in the company, valued at $4,347,324.30. This trade represents a 19.20% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Carey F. Jaros acquired 40,000 shares of the stock in a transaction dated Tuesday, March 10th. The stock was acquired at an average price of $6.26 per share, with a total value of $250,400.00. Following the completion of the acquisition, the director owned 76,066 shares in the company, valued at approximately $476,173.16. The trade was a 110.91% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders purchased 899,905 shares of company stock valued at $5,396,307 and sold 89,493 shares valued at $524,431. Company insiders own 4.50% of the company's stock.

Institutional Investors Weigh In On Grocery Outlet

A number of hedge funds have recently made changes to their positions in the business. Thrivent Financial for Lutherans lifted its holdings in shares of Grocery Outlet by 1.0% in the 2nd quarter. Thrivent Financial for Lutherans now owns 72,087 shares of the company's stock worth $895,000 after acquiring an additional 739 shares during the last quarter. Amalgamated Bank lifted its holdings in shares of Grocery Outlet by 3.5% in 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 last quarter. Natixis Advisors LLC lifted its holdings in shares of Grocery Outlet by 5.5% in 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 last quarter. Hantz Financial Services Inc. lifted its holdings 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 acquiring an additional 1,739 shares during the last quarter. Finally, PNC Financial Services Group Inc. lifted its holdings 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 acquiring an additional 1,846 shares during the last quarter. 99.87% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.