Groupon, Inc. (NASDAQ:GRPN) Receives Average Rating of "Hold" from Analysts

Key Points

• Groupon currently has an average analyst rating of “Hold”, with two sell ratings, one hold, and two buy ratings among the five brokerages covering the stock. The average 1-year price target is about $28.67.
• The company’s latest earnings report was weak: Groupon posted EPS of -$0.32, missing expectations, while revenue of $117.2 million came in slightly below estimates. Analysts still expect the company to remain near breakeven or loss-making in the near term.
• Despite near-term challenges, some recent commentary has been more constructive, citing AI-driven restructuring and workforce reductions as potential catalysts for better efficiency and longer-term profitability. Northland Securities also raised several future earnings estimates, though it trimmed some near-term projections.

Groupon, Inc. (NASDAQ:GRPN - Get Free Report) has earned an average recommendation of "Hold" from the five brokerages that are presently covering the stock, Marketbeat.com reports. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and two have given a buy rating to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $28.6667.

GRPN has been the topic of a number of research reports. Wall Street Zen lowered shares of Groupon from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. The Goldman Sachs Group reiterated a "sell" rating and set a $13.00 target price (up from $10.00) on shares of Groupon in a report on Tuesday, May 12th. Finally, Northland Securities set a $26.00 target price on shares of Groupon in a report on Wednesday.

Institutional Investors Weigh In On Groupon

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Quarry LP raised its holdings in shares of Groupon by 48.1% in the 3rd quarter. Quarry LP now owns 1,938 shares of the coupon company's stock valued at $45,000 after purchasing an additional 629 shares in the last quarter. Royal Bank of Canada raised its holdings in shares of Groupon by 10.6% in the 1st quarter. Royal Bank of Canada now owns 7,618 shares of the coupon company's stock valued at $90,000 after purchasing an additional 731 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Groupon in the 3rd quarter valued at $32,000. Franklin Resources Inc. raised its holdings in shares of Groupon by 6.9% in the 4th quarter. Franklin Resources Inc. now owns 21,340 shares of the coupon company's stock valued at $376,000 after purchasing an additional 1,377 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Groupon by 4.8% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 32,126 shares of the coupon company's stock valued at $566,000 after purchasing an additional 1,486 shares in the last quarter. 90.05% of the stock is currently owned by institutional investors and hedge funds.

Groupon Price Performance

Groupon stock opened at $20.23 on Monday. The firm has a market cap of $768.34 million, a PE ratio of -7.75 and a beta of 0.24. Groupon has a 52-week low of $9.17 and a 52-week high of $43.08. The company's 50 day moving average is $14.77 and its two-hundred day moving average is $15.03.

Groupon (NASDAQ:GRPN - Get Free Report) last released its earnings results on Thursday, May 7th. The coupon company reported ($0.32) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.30). The business had revenue of $117.20 million for the quarter, compared to analyst estimates of $117.65 million. Groupon had a negative return on equity of 717.37% and a negative net margin of 20.78%. On average, equities research analysts anticipate that Groupon will post -0.02 earnings per share for the current fiscal year.

Key Headlines Impacting Groupon

Here are the key news stories impacting Groupon this week:

• Positive Sentiment: Northland Securities raised several longer-term earnings estimates for Groupon, including FY2027 EPS to $0.98 from $0.66, and also lifted Q1 2027, Q2 2027, Q3 2027, and Q4 2027 projections, signaling improving expectations for the company’s profitability.
• Positive Sentiment: Groupon’s workforce reduction and AI-focused restructuring have been highlighted as a potential catalyst, with some coverage suggesting the cost-cutting move could improve efficiency and help the stock if execution continues to improve. Article Title
• Neutral Sentiment: Commentary from Seeking Alpha noted that Groupon has made an “impressive workforce transformation,” but investors should wait for a clearer billings picture before getting more constructive, suggesting the turnaround thesis is still incomplete. Article Title
• Neutral Sentiment: Another Seeking Alpha article argued Groupon could be “coiled for a squeeze,” which may be attracting speculative interest, but this is not a fundamental confirmation of improved business performance. Article Title
• Negative Sentiment: Northland also lowered near-term EPS estimates for Q2 2026, Q3 2026, and FY2026, showing that analysts still expect losses in the near term before profitability improves.
• Negative Sentiment: Recent coverage of Groupon’s layoffs underscores the scale of its restructuring, which can support margins over time but also highlights that the company is still in a difficult transition. Article Title

About Groupon

Groupon, Inc operates an online marketplace that connects subscribers with local merchants offering discounted goods, services and experiences. Through its website and mobile applications, Groupon provides time-limited deals across categories such as restaurants, travel, beauty and wellness, home services, and consumer products. Merchants partner with Groupon to attract new customers and drive foot traffic, leveraging the platform's targeted marketing tools and large subscriber base to promote special offers and vouchers.

Founded in Chicago in 2008 by Andrew Mason, Eric Lefkofsky and Brad Keywell, Groupon pioneered the daily-deals model, quickly growing its user community and merchant network.

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