Grocery Outlet (NASDAQ:GO) Trading Down 5.1% - Here's Why

Key Points

• Grocery Outlet's shares dropped 5.1% on Monday, closing at $16.87, with trading volume significantly lower than its average.
• Equities analysts show mixed sentiment, with three ratings for Buy, nine for Hold, and one for Sell, while the average price target is set at $16.08.
• The company reported a revenue of $1.18 billion for the last quarter, slightly below expectations, but earnings of $0.23 per share exceeded the consensus estimate.

Grocery Outlet Holding Corp. (NASDAQ:GO - Get Free Report) shares dropped 5.1% during mid-day trading on Monday . The company traded as low as $17.09 and last traded at $16.87. Approximately 948,431 shares were traded during trading, a decline of 70% from the average daily volume of 3,166,111 shares. The stock had previously closed at $17.77.

Analysts Set New Price Targets

GO has been the subject of a number of research reports. Craig Hallum raised Grocery Outlet from a "hold" rating to a "buy" rating and set a $17.00 price objective for the company in a research report on Wednesday, August 6th. Morgan Stanley raised Grocery Outlet from an "underweight" rating to an "equal weight" rating and lifted their price objective for the company from $13.00 to $16.00 in a research report on Wednesday, August 6th. Finally, Telsey Advisory Group reissued a "market perform" rating and set a $16.00 price objective on shares of Grocery Outlet in a research report on Wednesday, August 6th. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $16.08.

Grocery Outlet Stock Performance

The stock has a 50 day moving average price of $16.44 and a two-hundred day moving average price of $14.68. The company has a current ratio of 1.21, a quick ratio of 0.25 and a debt-to-equity ratio of 0.38. The company has a market cap of $1.62 billion, a price-to-earnings ratio of 235.11, a P/E/G ratio of 3.60 and a beta of 0.32.

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

Insider Activity at Grocery Outlet

In related news, EVP Steven K. Wilson sold 5,000 shares of the company's stock in a transaction on Friday, August 15th. The shares were 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 $2,588,675.52. This represents a 3.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 4.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Grocery Outlet

A number of large investors have recently added to or reduced their stakes in GO. Parallel Advisors LLC increased its holdings in Grocery Outlet by 213.5% during the 2nd quarter. Parallel Advisors LLC now owns 2,025 shares of the company's stock worth $25,000 after purchasing an additional 1,379 shares in the last quarter. PNC Financial Services Group Inc. lifted its stake in Grocery Outlet by 32.3% in the 2nd quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company's stock valued at $37,000 after purchasing an additional 719 shares during the last quarter. US Bancorp DE lifted its position in Grocery Outlet by 64.2% during the first quarter. US Bancorp DE now owns 3,024 shares of the company's stock worth $42,000 after acquiring an additional 1,182 shares during the last quarter. AlphaQuest LLC lifted its position in Grocery Outlet by 327.7% during the second quarter. AlphaQuest LLC now owns 5,761 shares of the company's stock worth $72,000 after acquiring an additional 4,414 shares during the last quarter. Finally, GAMMA Investing LLC increased its holdings in shares of Grocery Outlet by 236.0% during the first quarter. GAMMA Investing LLC now owns 5,188 shares of the company's stock worth $73,000 after purchasing an additional 3,644 shares during the period. Institutional investors own 99.87% of the company's stock.

Grocery Outlet Company Profile

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.