Grocery Outlet (NASDAQ:GO) Stock Price Down 4.5% - What's Next?

Key Points

• Grocery Outlet's stock declined by 4.5% during mid-day trading, reaching a low of $17.66 and experiencing a significant drop in trading volume.
• Analyst upgrades from firms like Morgan Stanley and Craig Hallum have brought positive outlooks, raising price targets and rating the stock from "hold" to "buy."
• The company reported earnings of $0.23 EPS, exceeding estimates, but had a revenue decline from consensus expectations despite a year-over-year increase in revenue.

Grocery Outlet Holding Corp. (NASDAQ:GO - Get Free Report) traded down 4.5% during mid-day trading on Monday . The company traded as low as $17.66 and last traded at $17.70. 223,429 shares changed hands during mid-day trading, a decline of 93% from the average session volume of 3,266,544 shares. The stock had previously closed at $18.54.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on GO. Morgan Stanley raised shares of Grocery Outlet from an "underweight" rating to an "equal weight" rating and upped their price target for the stock from $13.00 to $16.00 in a report on Wednesday, August 6th. Craig Hallum upgraded shares of 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. UBS Group increased their price objective on shares of Grocery Outlet from $14.50 to $17.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 7th. Telsey Advisory Group reissued a "market perform" rating and set a $16.00 target price on shares of Grocery Outlet in a research note on Wednesday, August 6th. Finally, Jefferies Financial Group raised shares of Grocery Outlet from a "hold" rating to a "buy" rating and raised their price objective for the company from $13.00 to $18.00 in a research note on Wednesday, April 16th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and three have given a buy rating to the company. According to MarketBeat, Grocery Outlet currently has an average rating of "Hold" and an average price target of $16.08.

Grocery Outlet Stock Down 2.2%

The stock's 50-day moving average price is $13.67 and its two-hundred day moving average price is $14.22. The stock has a market capitalization of $1.78 billion, a PE ratio of 258.97, a P/E/G ratio of 4.13 and a beta of 0.27. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.25 and a current ratio of 1.21.

Grocery Outlet (NASDAQ:GO - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $0.23 EPS for the quarter, beating the consensus estimate 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 net margin of 0.18% and a return on equity of 6.34%. Grocery Outlet's revenue for the quarter was up 4.5% on a year-over-year basis. During the same period in the prior year, the firm posted $0.25 EPS. As a group, analysts expect that Grocery Outlet Holding Corp. will post 0.63 EPS for the current fiscal year.

Institutional Investors Weigh In On Grocery Outlet

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GO. Intech Investment Management LLC purchased a new position in shares of Grocery Outlet in the second quarter valued at $3,835,000. Cetera Investment Advisers lifted its position in shares of Grocery Outlet by 2.1% during the second quarter. Cetera Investment Advisers now owns 171,538 shares of the company's stock worth $2,131,000 after purchasing an additional 3,531 shares during the last quarter. Creative Planning lifted its position in shares of Grocery Outlet by 25.4% during the second quarter. Creative Planning now owns 16,104 shares of the company's stock worth $200,000 after purchasing an additional 3,263 shares during the last quarter. SG Americas Securities LLC lifted its position in shares of Grocery Outlet by 215.8% during the second quarter. SG Americas Securities LLC now owns 46,895 shares of the company's stock worth $582,000 after purchasing an additional 32,047 shares during the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its position in shares of Grocery Outlet by 8.3% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 25,170 shares of the company's stock worth $313,000 after purchasing an additional 1,925 shares during the last quarter. 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.

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