Grocery Outlet (NASDAQ:GO) Stock Rating Lowered by Craig Hallum

Key Points

• Craig Hallum downgraded Grocery Outlet from a "strong‑buy" to a "hold," multiple analysts cut ratings and price targets, and the stock plunged ~27.9% to about $6.34, leaving a consensus analyst stance of Reduce with a $10.68 target.
• Q4 results missed estimates (EPS $0.19 vs. $0.21) and management booked large non‑cash charges — roughly $113.8M of long‑lived asset impairment, $149.0M goodwill impairment and $45.9M of restructuring — driving an operating/net loss and a lowered FY‑2026 guidance of $0.45–$0.55 (vs. ~ $0.77 consensus).
• The company announced closure of 36 stores and retained Gordon Brothers to market leasehold opportunities as part of portfolio optimization, while shareholder investigations and institutional/insider selling create further legal and sell‑side pressure.

Grocery Outlet (NASDAQ:GO - Get Free Report) was downgraded by research analysts at Craig Hallum from a "strong-buy" rating to a "hold" rating in a report issued on Thursday,Zacks.com reports.

A number of other analysts also recently weighed in on the company. Zacks Research downgraded Grocery Outlet from a "strong-buy" rating to a "hold" rating in a research note on Friday, November 14th. Deutsche Bank Aktiengesellschaft set a $11.00 price objective on shares of Grocery Outlet in a research note on Thursday, January 8th. DA Davidson set a $8.00 target price on shares of Grocery Outlet in a research report on Thursday. TD Cowen reaffirmed a "hold" rating on shares of Grocery Outlet in a report on Thursday. Finally, UBS Group reissued a "neutral" rating and set a $11.50 price objective on shares of Grocery Outlet in a research note on Thursday, December 18th. Eleven research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $10.68.

Grocery Outlet Trading Down 27.9%

Shares of GO stock opened at $6.34 on Thursday. The company has a market capitalization of $622.19 million, a P/E ratio of -2.77, a price-to-earnings-growth ratio of 1.79 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. The business's 50 day moving average is $9.72 and its two-hundred day moving average is $12.70. Grocery Outlet has a twelve month low of $6.20 and a twelve month high of $19.41.

Grocery Outlet (NASDAQ:GO - Get Free Report) last released its quarterly earnings results on Wednesday, March 4th. The company reported $0.19 EPS for the quarter, missing the consensus estimate of $0.21 by ($0.02). Grocery Outlet had a positive return on equity of 5.67% and a negative net margin of 4.80%.The company had revenue of $1.22 billion for the quarter, compared to analysts' expectations of $1.23 billion. During the same quarter last year, the company earned $0.15 EPS. Grocery Outlet'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. Equities analysts forecast that Grocery Outlet will post 0.63 EPS for the current year.

Hedge Funds Weigh In On Grocery Outlet

Hedge funds have recently made changes to their positions in the stock. Bayforest Capital Ltd acquired a new stake in shares of Grocery Outlet during the 3rd quarter worth $29,000. Hantz Financial Services Inc. raised its holdings in shares of Grocery Outlet by 591.5% in the 3rd quarter. Hantz Financial Services Inc. now owns 2,033 shares of the company's stock worth $33,000 after purchasing an additional 1,739 shares during the period. Aster Capital Management DIFC Ltd lifted its stake in shares of Grocery Outlet by 1,030.4% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company's stock valued at $26,000 after purchasing an additional 2,308 shares in the last quarter. PNC Financial Services Group Inc. grew its holdings in shares of Grocery Outlet by 32.3% during the 2nd quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company's stock worth $37,000 after purchasing an additional 719 shares during the period. Finally, Kestra Advisory Services LLC purchased a new stake in shares of Grocery Outlet during the 4th quarter worth about $35,000. Institutional investors and hedge funds own 99.87% of the company's stock.

Grocery Outlet News Summary

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

• Positive Sentiment: Operational cash metrics improved year‑over‑year (operating cash flow and cash balance rose), which gives some near‑term liquidity cushion. QuiverQuant Q4 summary
• Positive Sentiment: Grocery Outlet retained Gordon Brothers to market leasehold opportunities as part of its portfolio optimization — a potential source of proceeds and faster footprint rationalization. Gordon Brothers press release
• Neutral Sentiment: Top-line still grew: total revenue was up ~10.7% YoY to about $1.22B and gross profit increased, but same‑store comps weakened — a mixed operational picture. Earnings release
• Negative Sentiment: Q4 results missed estimates (EPS $0.19 vs. $0.21 expected; revenue slightly below consensus) and management reported meaningful operating losses driven by non‑cash impairment and restructuring charges. Zacks earnings coverage
• Negative Sentiment: Large non‑cash charges: management disclosed ~ $113.8M impairment of long‑lived assets, $149.0M goodwill impairment and $45.9M restructuring charges, producing an operating loss and a big swing to net loss — a major driver of investor selling. Earnings release
• Negative Sentiment: FY‑2026 guidance was lowered well below Street expectations (EPS guidance of $0.45–$0.55 vs. ~ $0.77 consensus), signaling a slower recovery and pressuring valuation. Guidance slide deck
• Negative Sentiment: Management announced closure of 36 stores tied to the fiscal‑2025 net loss, increasing near‑term execution and comps risk. The Shelby Report
• Negative Sentiment: Multiple analysts cut price targets and downgraded the stock after the report (Morgan Stanley, Wells Fargo, DA Davidson, Jefferies, Telsey and others), removing buy conviction. Benzinga analyst roundup
• Negative Sentiment: Shareholder investigations were announced by law firms (Ademi LLP and Holzer & Holzer), citing potential misstatements about financials and disclosures — a legal overhang that raises uncertainty. Ademi LLP alert Holzer & Holzer alert
• Negative Sentiment: Institutional selling and at‑least one recent insider sale were flagged in filings/third‑party data, adding to downward pressure amid the negative news flow. QuiverQuant institutional data

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.

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