Grocery Outlet (NASDAQ:GO) Stock Rating Upgraded by Zacks Research

Key Points

• Grocery Outlet's stock rating has been upgraded by Zacks Research from a "hold" to a "strong-buy", reflecting increased analyst confidence in the company.
• Multiple analysts have raised their price targets for Grocery Outlet, with Telsey Advisory Group setting a new target of $20.00 and Morgan Stanley raising theirs to $16.00.
• Grocery Outlet reported $0.23 earnings per share for the last quarter, exceeding estimates, while revenue rose 4.5% year-over-year.

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

Other analysts have also issued research reports about the company. Telsey Advisory Group upgraded Grocery Outlet from a "market perform" rating to an "outperform" rating and upped their price objective for the company from $16.00 to $20.00 in a research note on Wednesday, October 1st. Morgan Stanley upgraded Grocery Outlet from an "underweight" rating to an "equal weight" rating and upped their price objective for the company from $13.00 to $16.00 in a research note on Wednesday, August 6th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Grocery Outlet in a research report on Wednesday, October 8th. Finally, Craig Hallum raised Grocery Outlet from a "hold" rating to a "buy" rating and set a $17.00 target price on the stock in a research report on Wednesday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Grocery Outlet has an average rating of "Hold" and a consensus target price of $16.27.

Grocery Outlet Stock Performance

GO opened at $15.36 on Thursday. Grocery Outlet has a 52-week low of $10.26 and a 52-week high of $21.67. The firm has a market capitalization of $1.51 billion, a PE ratio of 219.46, a PEG ratio of 3.17 and a beta of 0.29. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.25 and a current ratio of 1.21. The business's 50-day simple moving average is $17.05 and its 200 day simple moving average is $15.12.

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

Insider Transactions at Grocery Outlet

In related news, EVP Steven K. Wilson sold 5,000 shares of the stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $18.24, for a total transaction of $91,200.00. Following the sale, the executive vice president owned 141,923 shares of the company's stock, valued at $2,588,675.52. This represents a 3.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 4.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Grocery Outlet

A number of large investors have recently added to or reduced their stakes in GO. Wellington Management Group LLP acquired a new stake in Grocery Outlet during the first quarter worth approximately $43,509,000. T. Rowe Price Investment Management Inc. grew its position in Grocery Outlet by 1,577.2% during the first quarter. T. Rowe Price Investment Management Inc. now owns 3,262,956 shares of the company's stock worth $45,617,000 after buying an additional 3,068,405 shares in the last quarter. Solas Capital Management LLC acquired a new stake in Grocery Outlet during the first quarter worth approximately $13,736,000. Geode Capital Management LLC grew its position in Grocery Outlet by 41.7% during the second quarter. Geode Capital Management LLC now owns 2,390,051 shares of the company's stock worth $29,688,000 after buying an additional 702,807 shares in the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main acquired a new stake in shares of Grocery Outlet in the 2nd quarter valued at $7,674,000. Institutional investors and hedge funds 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.

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