Grocery Outlet (NASDAQ:GO) Rating Lowered to "Market Perform" at Telsey Advisory Group

Key Points

• Telsey Advisory Group downgraded Grocery Outlet from "outperform" to "market perform" and cut its price target from $15.00 to $9.00, implying only about a 2.4% upside from the current share price.
• Grocery Outlet missed Q4 estimates (EPS $0.19 vs. $0.21 consensus; revenue slightly below) and issued weak FY2026 guidance of $0.45–$0.55 EPS—this guidance shortfall is the main driver of investor concern and recent share weakness.
• Several brokers have lowered ratings and targets following the report, leaving a MarketBeat consensus rating of "Reduce" with a $11.73 target, even as institutional holders (including T. Rowe Price and others) hold almost all the stock by ownership.

Grocery Outlet (NASDAQ:GO - Get Free Report) was downgraded by stock analysts at Telsey Advisory Group from an "outperform" rating to a "market perform" rating in a research report issued on Thursday, MarketBeat reports. They currently have a $9.00 price target on the stock, down from their previous price target of $15.00. Telsey Advisory Group's target price would indicate a potential upside of 2.39% from the stock's current price.

Other equities analysts also recently issued reports about the stock. Wells Fargo & Company downgraded shares of Grocery Outlet from an "overweight" rating to an "equal weight" rating and reduced their price objective for the stock from $16.00 to $10.50 in a report on Wednesday, February 25th. Deutsche Bank Aktiengesellschaft set a $11.00 price target on shares of Grocery Outlet in a research report on Thursday, January 8th. Zacks Research downgraded Grocery Outlet from a "strong-buy" rating to a "hold" rating in a report on Friday, November 14th. DA Davidson reiterated a "neutral" rating and issued a $15.00 price objective on shares of Grocery Outlet in a research note on Thursday, December 4th. Finally, Morgan Stanley dropped their target price on Grocery Outlet from $14.00 to $11.00 and set an "equal weight" rating for the company in a report on Thursday, January 15th. One investment analyst has rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Grocery Outlet currently has a consensus rating of "Reduce" and a consensus target price of $11.73.

Grocery Outlet Price Performance

Shares of NASDAQ:GO opened at $8.79 on Thursday. The firm has a market capitalization of $862.65 million, a PE ratio of -175.80, a PEG ratio of 1.80 and a beta of 0.50. The company has a current ratio of 1.30, a quick ratio of 0.25 and a debt-to-equity ratio of 0.40. Grocery Outlet has a 1-year low of $8.73 and a 1-year high of $19.41. The business's 50 day moving average is $9.79 and its 200-day moving average is $12.74.

Grocery Outlet (NASDAQ:GO - Get Free Report) last issued its earnings results on Wednesday, March 4th. The company reported $0.19 EPS for the quarter, missing analysts' consensus estimates of $0.21 by ($0.02). Grocery Outlet had a negative net margin of 0.10% and a positive return on equity of 5.86%. The firm had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same quarter in the previous year, the company posted $0.15 earnings per share. The business's revenue for the quarter was up 10.7% compared to the same quarter last year. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Sell-side analysts predict that Grocery Outlet will post 0.63 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. T. Rowe Price Investment Management Inc. boosted its stake in Grocery Outlet by 54.0% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 15,763,945 shares of the company's stock worth $159,216,000 after acquiring an additional 5,528,722 shares during the last quarter. Millennium Management LLC increased its holdings in Grocery Outlet by 3,558.0% during the 3rd quarter. Millennium Management LLC now owns 1,825,407 shares of the company's stock worth $29,298,000 after purchasing an additional 1,775,505 shares in the last quarter. UBS Group AG raised its position in Grocery Outlet by 87.6% in the 4th quarter. UBS Group AG now owns 2,726,299 shares of the company's stock valued at $27,536,000 after buying an additional 1,272,859 shares during the last quarter. Boston Partners raised its holdings 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 valued at $23,475,000 after purchasing an additional 1,005,126 shares during the last quarter. Finally, Invesco Ltd. increased its stake in Grocery Outlet by 106.5% in the 4th quarter. Invesco Ltd. now owns 1,914,410 shares of the company's stock valued at $19,336,000 after buying an additional 987,367 shares during the last quarter. 99.87% of the stock is currently owned by institutional investors.

Grocery Outlet News Summary

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

• Positive Sentiment: Revenue and margins improved year-over-year: Q4 sales rose ~10.7% to $1.22B and gross profit increased ~11.5%; operating cash flow and cash balances also grew, which supports near-term liquidity. Read More.
• Neutral Sentiment: The company noted an extra 53rd week in the period (complicates year‑over‑year comps) and announced a formal “Optimization Plan” to improve execution, profitability and cash flow — the plan could help margins long term but may include near‑term charges/costs. Read More.
• Negative Sentiment: Reported EPS missed estimates: Q4 EPS $0.19 vs. consensus ~$0.21 and revenue slightly below forecasts — investors view the miss as a sign of margin pressure. Read More.
• Negative Sentiment: FY2026 guidance came in below Street expectations: EPS guide of $0.45–$0.55 (consensus ~$0.77) and revenue guide of ~$4.6–4.7B vs. ~4.8B consensus — this weaker outlook is the primary driver of investor concern. Read More.
• Negative Sentiment: GAAP/one‑time items drove large reported operating and net losses in some reports (Quiver highlighted an operating loss and a GAAP diluted loss per share), amplifying the market reaction; shares reportedly fell sharply after the release. Read More.
• Negative Sentiment: Notable insider and institutional selling reported in the quarter (including large fund reductions), which can add selling pressure following the weak report and guide. Read More.

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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