Groupon (NASDAQ:GRPN) Rating Lowered to Buy at Wall Street Zen

Key Points

• Groupon has been downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, reflecting changing sentiment among equities researchers.
• The company's average rating is currently "Hold" with a target price of $29.80, as four analysts rate it a Buy while two assign a Sell rating.
• In its latest quarterly earnings report, Groupon beat consensus EPS estimates, reporting $0.46 and revenues of $125.70 million, indicating potential growth despite a negative net margin.

Groupon (NASDAQ:GRPN - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report issued on Saturday.

Several other brokerages also recently commented on GRPN. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Groupon in a research note on Wednesday, October 8th. Northland Securities upped their price objective on shares of Groupon from $39.00 to $44.00 and gave the company an "outperform" rating in a research note on Monday, August 11th. Finally, UBS Group assumed coverage on shares of Groupon in a research note on Thursday, August 7th. They set a "mixed" rating for the company. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $29.80.

Groupon Stock Performance

Groupon stock opened at $20.99 on Friday. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 4.16. The company has a market capitalization of $848.63 million, a PE ratio of -87.45 and a beta of 0.51. The firm has a fifty day simple moving average of $23.33 and a two-hundred day simple moving average of $26.77. Groupon has a twelve month low of $7.75 and a twelve month high of $43.08.

Groupon (NASDAQ:GRPN - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The coupon company reported $0.46 EPS for the quarter, beating the consensus estimate of ($0.02) by $0.48. The firm had revenue of $125.70 million during the quarter, compared to the consensus estimate of $122.46 million. Groupon had a negative net margin of 1.89% and a negative return on equity of 19.61%. Research analysts expect that Groupon will post -0.31 EPS for the current year.

Hedge Funds Weigh In On Groupon

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Generali Investments CEE investicni spolecnost a.s. grew its holdings in Groupon by 10.5% in the first quarter. Generali Investments CEE investicni spolecnost a.s. now owns 198,062 shares of the coupon company's stock worth $3,718,000 after purchasing an additional 18,772 shares during the period. Bank of New York Mellon Corp grew its holdings in Groupon by 2.4% in the first quarter. Bank of New York Mellon Corp now owns 74,808 shares of the coupon company's stock worth $1,404,000 after purchasing an additional 1,720 shares during the period. Trust Investment Advisors purchased a new stake in Groupon in the first quarter worth about $218,000. Headlands Technologies LLC purchased a new stake in Groupon in the first quarter worth about $1,079,000. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new stake in Groupon in the first quarter worth about $2,817,000. Hedge funds and other institutional investors own 90.05% of the company's stock.

About Groupon

Groupon, Inc, together with its subsidiaries, operates a marketplace that connects consumers to merchants. It operates in two segments, North America and International. The company sells goods or services on behalf of third-party merchants. It serves customers through its mobile applications and websites.

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