Grocery Outlet (NASDAQ:GO) Shares Down 5% - What's Next?

Key Points

• Shares of Grocery Outlet Holding Corp. (NASDAQ:GO) fell 5% during mid-day trading, reaching a low of $15.64 before closing at $15.72.
• Brokerages have mixed ratings for the company, with three analysts rating it as a Buy, nine as Hold, and one as Sell, and an average price target of $16.08.
• Grocery Outlet reported earnings of $0.23 per share, exceeding expectations, but revenue slightly missed forecasts, with $1.18 billion for the quarter.

Shares of Grocery Outlet Holding Corp. (NASDAQ:GO - Get Free Report) fell 5% during mid-day trading on Monday . The company traded as low as $15.64 and last traded at $15.72. 735,921 shares traded hands during trading, a decline of 77% from the average session volume of 3,163,436 shares. The stock had previously closed at $16.55.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on GO. Morgan Stanley upgraded Grocery Outlet from an "underweight" rating to an "equal weight" rating and boosted their price target for the stock from $13.00 to $16.00 in a research report on Wednesday, August 6th. Telsey Advisory Group reiterated a "market perform" rating and set a $16.00 price target on shares of Grocery Outlet in a research report on Wednesday, August 6th. Finally, Craig Hallum upgraded Grocery Outlet from a "hold" rating to a "buy" rating and set a $17.00 price objective for the company in a report on Wednesday, August 6th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $16.08.

Grocery Outlet Stock Performance

The stock's 50-day moving average price is $16.51 and its 200 day moving average price is $14.76. The company has a market cap of $1.53 billion, a P/E ratio of 223.10, a price-to-earnings-growth ratio of 3.54 and a beta of 0.32. The company has a quick ratio of 0.25, a current ratio of 1.21 and a debt-to-equity ratio of 0.38.

Grocery Outlet (NASDAQ:GO - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.06. Grocery Outlet had a return on equity of 6.34% and a net margin of 0.18%.The firm had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter in the prior year, the company earned $0.25 EPS. The firm's revenue for the quarter was up 4.5% compared to the same quarter last year. Grocery Outlet has set its FY 2025 guidance at 0.750-0.800 EPS. As a group, research analysts expect that Grocery Outlet Holding Corp. will post 0.63 EPS for the current fiscal year.

Insider Activity at Grocery Outlet

In other Grocery Outlet news, EVP Steven K. Wilson sold 5,000 shares of the firm's stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $18.24, for a total value of $91,200.00. Following the completion of the sale, the executive vice president owned 141,923 shares in the company, valued at approximately $2,588,675.52. This trade represents a 3.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 4.50% of the company's stock.

Hedge Funds Weigh In On Grocery Outlet

Hedge funds and other institutional investors have recently modified their holdings of the stock. Wellington Management Group LLP acquired a new stake in Grocery Outlet during the 1st quarter valued at $43,509,000. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Grocery Outlet by 1,577.2% in the first quarter. T. Rowe Price Investment Management Inc. now owns 3,262,956 shares of the company's stock valued at $45,617,000 after purchasing an additional 3,068,405 shares in the last quarter. Solas Capital Management LLC bought a new stake in shares of Grocery Outlet in the first quarter valued at about $13,736,000. Geode Capital Management LLC increased its position in shares of Grocery Outlet by 41.7% in the second quarter. Geode Capital Management LLC now owns 2,390,051 shares of the company's stock valued at $29,688,000 after acquiring an additional 702,807 shares during the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main acquired a new position in Grocery Outlet during the second quarter worth approximately $7,674,000. Institutional investors own 99.87% of the company's stock.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.