Grocery Outlet (NASDAQ:GO) Price Target Raised to $11.00

Key Points

• Wells Fargo raised Grocery Outlet’s price target to $11 from $9 while maintaining an “equal weight” rating, implying 8.16% upside from the prior close.
• Grocery Outlet exceeded quarterly expectations with $0.20 in EPS versus a $0.13 consensus and $1.19 billion in revenue versus estimates of $1.17 billion; revenue rose 1.1% year over year.
• Despite the earnings beat, analysts remain cautious: the stock’s average rating is “Reduce” with a $10.45 target, while negative net margins and modest comparable-store performance continue to weigh on the outlook.

Grocery Outlet (NASDAQ:GO - Get Free Report) had its price target hoisted by stock analysts at Wells Fargo & Company from $9.00 to $11.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's price target indicates a potential upside of 8.16% from the stock's previous close.

GO has been the subject of several other reports. TD Cowen upped their price target on Grocery Outlet from $6.00 to $8.00 and gave the stock a "hold" rating in a research note on Thursday, May 14th. Weiss Ratings downgraded shares of Grocery Outlet from a "sell (d)" rating to a "sell (d-)" rating in a research note on Thursday, July 30th. DA Davidson set a $12.00 price objective on shares of Grocery Outlet in a research report on Thursday. Finally, Telsey Advisory Group set a $12.00 price target on Grocery Outlet in a report on Thursday. Eleven equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Reduce" and an average target price of $10.45.

Grocery Outlet Trading Up 3.5%

NASDAQ GO opened at $10.17 on Thursday. The company has a market cap of $1.01 billion, a P/E ratio of -2.62, a P/E/G ratio of 15.51 and a beta of 0.65. Grocery Outlet has a 12 month low of $5.66 and a 12 month high of $19.23. 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 company has a 50-day moving average of $9.59 and a 200-day moving average of $8.63.

Grocery Outlet (NASDAQ:GO - Get Free Report) last issued its quarterly earnings results on Wednesday, August 12th. The company reported $0.20 EPS for the quarter, topping the consensus estimate of $0.13 by $0.07. The firm had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.17 billion. Grocery Outlet had a negative net margin of 8.08% and a positive return on equity of 5.69%. Grocery Outlet's revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.23 earnings per share. As a group, equities analysts predict that Grocery Outlet will post 0.37 earnings per share for the current year.

Insider Buying and Selling

In other Grocery Outlet news, insider Paul Blaine Miller purchased 5,000 shares of the firm's stock in a transaction dated Thursday, June 25th. The stock was bought at an average price of $9.50 per share, with a total value of $47,500.00. Following the completion of the purchase, the insider owned 64,171 shares in the company, valued at $609,624.50. This trade represents a 8.45% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 5.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Grocery Outlet

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in GO. Quantbot Technologies LP acquired a new position in shares of Grocery Outlet in the 2nd quarter valued at about $46,000. Ieq Capital LLC purchased a new stake in Grocery Outlet in the 2nd quarter worth approximately $267,000. Heartland Advisors Inc. purchased a new stake in Grocery Outlet in the 2nd quarter worth approximately $6,606,000. Allworth Financial LP acquired a new stake in shares of Grocery Outlet during the 2nd quarter valued at $40,000. Finally, BlackRock Inc. acquired a new stake in shares of Grocery Outlet during the 2nd quarter valued at $152,440,000. Institutional investors and hedge funds own 99.87% of the company's stock.

More Grocery Outlet News

Here are the key news stories impacting Grocery Outlet this week:

• Positive Sentiment: Earnings and revenue exceeded expectations. Grocery Outlet reported adjusted earnings of $0.20 per share, above the $0.12–$0.13 consensus range, while revenue of $1.19 billion topped estimates of approximately $1.17 billion. Net income increased to $5.6 million from $5.0 million a year earlier. Grocery Outlet Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Fiscal 2026 sales guidance was raised above Wall Street expectations. Management now expects full-year net sales of $4.70 billion to $4.72 billion, supporting the bullish reaction and suggesting confidence in the company’s value-focused strategy and operational initiatives. Grocery Outlet beats Q2 estimates and raises outlook
• Positive Sentiment: Recent insider activity provides an additional supportive signal. Several executives and directors have made sizable purchases during the past six months, including purchases by the CEO, which may indicate that insiders view the shares as undervalued.
• Neutral Sentiment: The earnings call highlighted a mixed operating picture. Revenue grew only 1.1% year over year, comparable-store sales declined 0.3%, and Grocery Outlet ended the quarter with 547 stores after opening 10 and closing 12. The company is pursuing growth and merchandising improvements, but investors will want evidence that these efforts can improve traffic and store productivity. Grocery Outlet Q2 2026 earnings call transcript
• Negative Sentiment: Profitability remains a concern. Reported EPS was $0.06, up from $0.05 but below the $0.23 adjusted EPS reported in the prior-year quarter, while the company continues to show a negative net margin. In addition, several large institutional holders reduced positions, creating a potential overhang despite the earnings beat.

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.

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.

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