Groupon (NASDAQ:GRPN) Sees Large Volume Increase - Still a Buy?

Key Points

• Q1 earnings miss: Groupon reported EPS of -$0.32 (vs. about -$0.02 expected) and flat revenue of $117.2M, with negative cash from operations (~$10M), an operating/net loss and total liabilities up ~17%, marking the main near‑term negative catalyst.
• Mixed market reaction: Shares traded up to $17.33 from a $15.46 close amid unusually high volume and heavy bullish options flow (~12,287 calls, +291%), but Goldman Sachs cut its price target to $10 and issued a sell rating while consensus remains a "Hold."
• Guidance and ownership: Management guided FY revenue to $513M–$523M and Q2 to $126M–$128M (broadly near Street but slightly below the Q2 midpoint), and institutional investors own ~90% of the stock with recent sizable purchases by Vanguard and Bank of America.

Shares of Groupon, Inc. (NASDAQ:GRPN - Get Free Report) saw unusually-high trading volume on Friday . Approximately 1,278,670 shares traded hands during mid-day trading, a decline of 15% from the previous session's volume of 1,496,318 shares.The stock last traded at $17.3320 and had previously closed at $15.46.

More Groupon News

Here are the key news stories impacting Groupon this week:

• Positive Sentiment: Unusual bullish options flow — traders bought ~12,287 call contracts on Friday (≈+291% vs. average), signaling short‑term bullish bets that can amplify upside moves or indicate takeover/strategic speculation.
• Positive Sentiment: International revenue strength — Groupon reported International Local revenue up ~10% (19% excluding Giftcloud), suggesting pockets of growth outside North America that could support future topline improvement. Groupon Reports First Quarter 2026 Results
• Neutral Sentiment: Guidance updated — FY revenue range set at $513M–$523M and Q2 revenue guided to $126M–$128M, broadly near Street estimates but slightly below consensus on the Q2 midpoint; guidance reduces visibility but is not a large beat or miss.
• Negative Sentiment: Q1 earnings and billings miss — Reported EPS of -$0.32 missed estimates (around -$0.02 to -$0.03) and revenue was essentially flat at $117.2M, missing expectations. The headline miss is the primary near‑term negative catalyst. Groupon Q1 Earnings Lag Estimates
• Negative Sentiment: Weak profitability and balance‑sheet trends — Q1 showed an operating loss, a larger net loss versus year‑ago, cash from operations negative (~$10M), and total liabilities up ~17%, highlighting leverage and near‑term profitability pressure. Quiver: Stock Falls on Q1 Earnings

Wall Street Analyst Weigh In

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

Groupon Stock Performance

The stock has a market cap of $731.96 million, a PE ratio of -8.88 and a beta of 0.11. The company's 50 day simple moving average is $12.55 and its 200 day simple moving average is $15.22.

Groupon (NASDAQ:GRPN - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The coupon company reported ($0.32) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.30). The firm had revenue of $117.20 million during the quarter, compared to analysts' expectations of $117.65 million. Groupon had a negative net margin of 16.76% and a negative return on equity of 717.37%. Equities research analysts expect that Groupon, Inc. will post 0.28 earnings per share for the current year.

Institutional Inflows and Outflows

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

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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