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 firms, with two sell ratings and eleven hold ratings. The average 1-year price target is about $10.32.
• Several brokerages recently trimmed their outlook on the stock, including Telsey Advisory Group and Craig Hallum, while Wells Fargo and DA Davidson raised price targets but kept neutral-type ratings.
• Insider buying has been notable: Director Erik D. Ragatz and CEO Jason J. N. Potter both purchased shares in March, and insiders have bought 448,905 shares worth about $2.69 million over the last 90 days.

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 firm, Marketbeat reports. Two equities research analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $10.3182.

A number of brokerages have recently commented on GO. Telsey Advisory Group downgraded Grocery Outlet from an "outperform" rating to a "market perform" rating and lowered their price objective for the company from $15.00 to $9.00 in a research report on Thursday, March 5th. Craig Hallum downgraded Grocery Outlet from a "strong-buy" rating to a "hold" rating in a research report on Thursday, March 5th. Weiss Ratings raised Grocery Outlet from a "sell (d-)" rating to a "sell (d)" rating in a research report on Friday, June 5th. Wells Fargo & Company boosted their price target on Grocery Outlet from $7.00 to $9.00 and gave the company an "equal weight" rating in a research report on Thursday, May 14th. Finally, DA Davidson upped their price target on Grocery Outlet from $7.00 to $9.00 and gave the stock a "neutral" rating in a research note on Thursday, May 14th.

Insider Activity

In other news, Director Erik D. Ragatz purchased 50,000 shares of the company's stock in a transaction on Thursday, March 19th. The stock was bought at an average cost of $5.75 per share, for a total transaction of $287,500.00. Following the completion of the purchase, the director directly owned 526,500 shares of the company's stock, valued at $3,027,375. The trade was a 10.49% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Jason J. N. Potter bought 110,252 shares of the company's stock in a transaction that occurred on Monday, March 23rd. The shares were acquired at an average cost of $6.35 per share, with a total value of $700,100.20. Following the transaction, the chief executive officer owned 684,618 shares in the company, valued at approximately $4,347,324.30. This represents a 19.20% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired 448,905 shares of company stock valued at $2,692,647 over the last 90 days. 4.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. T. Rowe Price Investment Management Inc. boosted its position in shares of Grocery Outlet by 54.0% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 15,763,945 shares of the company's stock worth $159,216,000 after buying an additional 5,528,722 shares during the period. Millennium Management LLC boosted its position in shares of Grocery Outlet by 3,558.0% in the third quarter. Millennium Management LLC now owns 1,825,407 shares of the company's stock worth $29,298,000 after buying an additional 1,775,505 shares during the period. UBS Group AG boosted its position in shares of Grocery Outlet by 87.6% in the fourth quarter. UBS Group AG now owns 2,726,299 shares of the company's stock worth $27,536,000 after buying an additional 1,272,859 shares during the period. Boston Partners boosted its position in shares of Grocery Outlet by 219.7% in the third quarter. Boston Partners now owns 1,462,633 shares of the company's stock worth $23,475,000 after buying an additional 1,005,126 shares during the period. Finally, Invesco Ltd. boosted its position in shares of Grocery Outlet by 106.5% in the fourth quarter. Invesco Ltd. now owns 1,914,410 shares of the company's stock worth $19,336,000 after buying an additional 987,367 shares during the period. Hedge funds and other institutional investors own 99.87% of the company's stock.

Grocery Outlet Price Performance

Shares of NASDAQ:GO opened at $9.88 on Wednesday. The company has a market cap of $977.33 million, a P/E ratio of -2.55, a P/E/G ratio of 14.89 and a beta of 0.67. The company has a quick ratio of 0.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.59. Grocery Outlet has a 52 week low of $5.66 and a 52 week high of $19.41. The business has a fifty day simple moving average of $8.03 and a 200-day simple moving average of $8.80.

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