Groupon (NASDAQ:GRPN) Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Groupon from “hold” to “sell”, adding to a cautious analyst tone around the stock. Goldman Sachs also cut its price target to $10 and kept a sell rating.
• Groupon’s latest quarter showed continued pressure on profitability, with EPS of -$0.32 missing estimates and revenue of $117.2 million coming in slightly below expectations. Billings and North America local revenue also declined.
• Despite the weak results, shares jumped 15% and management expressed confidence in stronger performance ahead. Some business areas, including international local revenue and the “Things to Do” segment, showed growth.

Groupon (NASDAQ:GRPN - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Separately, The Goldman Sachs Group lowered their price objective on shares of Groupon from $17.00 to $10.00 and set a "sell" rating on the stock in a research note on Thursday, March 12th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $33.67.

Groupon Stock Up 15.0%

Shares of NASDAQ:GRPN opened at $17.78 on Friday. The firm's 50 day moving average price is $12.55 and its 200-day moving average price is $15.22. Groupon has a twelve month low of $9.17 and a twelve month high of $43.08. The stock has a market capitalization of $689.86 million, a PE ratio of -6.81 and a beta of 0.11.

Groupon (NASDAQ:GRPN - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The coupon company reported ($0.32) earnings per share for the quarter, missing the consensus estimate of ($0.02) by ($0.30). Groupon had a negative return on equity of 717.37% and a negative net margin of 20.78%.The business had revenue of $117.20 million during the quarter, compared to the consensus estimate of $117.65 million. Analysts expect that Groupon will post 0.28 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Groupon

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in Groupon by 22.2% during the 3rd quarter. Vanguard Group Inc. now owns 2,108,578 shares of the coupon company's stock worth $49,235,000 after acquiring an additional 383,277 shares during the period. Bank of America Corp DE raised its stake in Groupon by 552.5% during the 2nd quarter. Bank of America Corp DE now owns 1,136,524 shares of the coupon company's stock worth $38,017,000 after acquiring an additional 962,337 shares during the period. Tyro Capital Management LLC raised its stake in Groupon by 6.8% during the 3rd quarter. Tyro Capital Management LLC now owns 1,091,095 shares of the coupon company's stock worth $25,477,000 after acquiring an additional 69,378 shares during the period. Garnet Equity Capital Holdings Inc. raised its stake in Groupon by 4.4% during the 4th quarter. Garnet Equity Capital Holdings Inc. now owns 958,660 shares of the coupon company's stock worth $16,882,000 after acquiring an additional 40,000 shares during the period. Finally, State Street Corp raised its stake in Groupon by 25.8% during the 4th quarter. State Street Corp now owns 881,422 shares of the coupon company's stock worth $15,522,000 after acquiring an additional 180,992 shares during the period. Institutional investors own 90.05% of the company's stock.

More Groupon News

Here are the key news stories impacting Groupon this week:

• Positive Sentiment: Groupon’s CEO said he is confident in “stronger performance ahead,” which helped offset some of the disappointment from the quarter and supported buying interest in the stock. Article Title
• Positive Sentiment: International local revenue rose 10%, or 19% excluding Giftcloud, and the “Things to Do” segment showed gains, suggesting some areas of the business are still growing. Article Title
• Positive Sentiment: Unusually large call-option buying in GRPN points to elevated trader speculation that the stock could continue its recent momentum. Article Title
• Neutral Sentiment: Groupon updated FY2026 revenue guidance to $513 million-$523 million and Q2 revenue guidance to $126 million-$128 million, which is broadly in line to slightly below analyst expectations. Article Title
• Negative Sentiment: First-quarter EPS of -$0.32 missed estimates by a wide margin, while revenue of $117.2 million was also slightly below expectations, underscoring that profitability remains under pressure. Article Title
• Negative Sentiment: Billings declined 1% and North America local revenue fell 1%, showing that core business trends are still soft despite pockets of improvement. Article Title

Groupon Company Profile

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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