Groupon (NASDAQ:GRPN) Shares Down 7.5% - Here's What Happened

Key Points

• Shares fell 7.5% on Friday to $14.3560 on heavy trading (2.62M shares), a ~101% rise vs. average volume.
• Analyst sentiment has turned cautious — Goldman Sachs cut its target from $17 to $10 and rated the stock "sell," Weiss Ratings reaffirmed a "sell," while the MarketBeat consensus remains a "Hold" with a $33.67 target.
• Q1 results missed expectations: Groupon reported EPS of $0.17 vs. $0.19 expected and revenue of $132.7M vs. $137.3M, posted a -16.76% net margin, and analysts now expect -$0.31 EPS for the year.

Groupon, Inc. (NASDAQ:GRPN - Get Free Report) traded down 7.5% on Friday . The company traded as low as $14.33 and last traded at $14.3560. 2,617,919 shares were traded during mid-day trading, an increase of 101% from the average session volume of 1,300,988 shares. The stock had previously closed at $15.52.

Analyst Ratings Changes

GRPN has been the subject of a number of recent analyst reports. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Groupon in a research report on Monday, December 29th. The Goldman Sachs Group cut their target price 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 investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $33.67.

Groupon Stock Performance

The business's 50-day moving average price is $11.93 and its 200-day moving average price is $15.93. The stock has a market cap of $551.35 million, a P/E ratio of -6.70 and a beta of -0.04.

Groupon (NASDAQ:GRPN - Get Free Report) last announced its quarterly earnings data on Tuesday, March 10th. The coupon company reported $0.17 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.19 by ($0.02). Groupon had a negative net margin of 16.76% and a negative return on equity of 717.37%. The company had revenue of $132.71 million for the quarter, compared to the consensus estimate of $137.34 million. As a group, equities research analysts expect that Groupon, Inc. will post -0.31 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Bank of America Corp DE grew its stake in Groupon by 552.5% during the second 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 in the last quarter. Millennium Management LLC raised its position in Groupon by 749.0% in the 4th quarter. Millennium Management LLC now owns 791,498 shares of the coupon company's stock worth $13,938,000 after purchasing an additional 698,270 shares during the period. Vanguard Group Inc. boosted its holdings in 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. ExodusPoint Capital Management LP bought a new position in Groupon in the 4th quarter worth about $5,993,000. Finally, Generali Investments CEE investicni spolecnost a.s. grew its stake in Groupon by 147.7% in the fourth quarter. Generali Investments CEE investicni spolecnost a.s. now owns 528,089 shares of the coupon company's stock worth $9,300,000 after purchasing an additional 314,896 shares in the last quarter. Institutional investors own 90.05% of the company's stock.

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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