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

Key Points

• Analysts are cautious on Grocery Outlet. The stock has a consensus rating of "Reduce" from 13 analysts, with 2 sells and 11 holds. The average 1-year price target is about $10.32.
• GO shares slipped in Friday trading. The stock fell 2.2% to $9.98, while the company’s market cap was roughly $987 million. It also remains well below its 52-week high of $19.41.
• Recent results topped expectations. In its latest quarter, Grocery Outlet earned $0.05 per share versus estimates of $0.02, and revenue of $1.17 billion also beat forecasts. Management projected FY 2026 EPS in the range of 0.45 to 0.55.

Shares of Grocery Outlet Holding Corp. (NASDAQ:GO - Get Free Report) have earned a consensus rating of "Reduce" from the thirteen analysts that are 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 1 year price objective among analysts that have issued ratings on the stock in the last year is $10.3182.

GO has been the topic of several analyst reports. DA Davidson increased their price objective on Grocery Outlet from $7.00 to $9.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. Weiss Ratings downgraded Grocery Outlet from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, June 23rd. Wells Fargo & Company upped their price target on Grocery Outlet from $7.00 to $9.00 and gave the stock an "equal weight" rating in a report on Thursday, May 14th. Finally, TD Cowen increased their price target on 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 Stock Down 2.2%

Shares of NASDAQ GO traded down $0.22 during midday trading on Friday, hitting $9.98. The company's stock had a trading volume of 1,342,799 shares, compared to its average volume of 2,426,797. The company has a debt-to-equity ratio of 0.59, a current ratio of 1.28 and a quick ratio of 0.27. The firm has a market capitalization of $987.22 million, a price-to-earnings ratio of -2.57, a price-to-earnings-growth ratio of 15.44 and a beta of 0.64. The business's fifty day simple moving average is $8.89 and its two-hundred day simple moving average is $8.68. Grocery Outlet has a 1 year low of $5.66 and a 1 year high of $19.41.

Grocery Outlet (NASDAQ:GO - Get Free Report) last released its earnings results on Wednesday, May 13th. The company reported $0.05 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 company had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.15 billion. During the same period in the prior year, the business earned $0.13 EPS. The firm's quarterly revenue was up 3.6% on a year-over-year basis. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. On average, equities analysts predict that Grocery Outlet will post 0.38 EPS for the current year.

Insider Buying and Selling at Grocery Outlet

In other news, insider Paul Blaine Miller bought 5,000 shares of the business's stock in a transaction that occurred on Thursday, June 25th. The shares were purchased at an average cost of $9.50 per share, for a total transaction of $47,500.00. Following the completion of the purchase, the insider owned 64,171 shares of the company's stock, valued at approximately $609,624.50. This represents a 8.45% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 4.50% of the company's stock.

Institutional Investors Weigh In On Grocery Outlet

A number of large investors have recently modified their holdings of GO. Aster Capital Management DIFC Ltd raised its holdings 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 valued at $26,000 after purchasing an additional 2,308 shares in the last quarter. Kestra Advisory Services LLC acquired a new position in shares of Grocery Outlet during the fourth quarter worth $35,000. State of Wyoming increased its holdings in Grocery Outlet by 96.9% in the fourth quarter. State of Wyoming now owns 7,886 shares of the company's stock valued at $80,000 after buying an additional 3,880 shares during the last quarter. GAMMA Investing LLC increased its holdings in Grocery Outlet by 165.9% in the second quarter. GAMMA Investing LLC now owns 8,599 shares of the company's stock valued at $86,000 after buying an additional 5,365 shares during the last quarter. Finally, Bayforest Capital Ltd raised its stake in Grocery Outlet by 427.0% in the fourth quarter. Bayforest Capital Ltd now owns 9,465 shares of the company's stock valued at $96,000 after buying an additional 7,669 shares in the last quarter. 99.87% of the stock is owned by hedge funds and other 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.

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