Groupon (NASDAQ:GRPN) Shares Gap Down - Should You Sell?

Groupon, Inc. (NASDAQ:GRPN - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $29.45, but opened at $28.42. Groupon shares last traded at $28.80, with a volume of 155,308 shares changing hands.

Analysts Set New Price Targets

Several equities research analysts have commented on GRPN shares. The Goldman Sachs Group upped their price target on shares of Groupon from $9.00 to $15.00 and gave the company a "sell" rating in a report on Monday, May 12th. Roth Mkm upped their target price on Groupon from $21.00 to $24.00 and gave the stock a "buy" rating in a research note on Tuesday, April 29th. Wall Street Zen lowered Groupon from a "strong-buy" rating to a "buy" rating in a report on Thursday, May 22nd. Ascendiant Capital Markets lifted their price target on Groupon from $14.00 to $19.00 and gave the company a "buy" rating in a research report on Monday, March 17th. Finally, Northland Securities upped their price objective on Groupon from $30.00 to $35.00 and gave the stock an "outperform" rating in a research report on Tuesday. One research analyst has rated the stock with a sell rating, four have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $23.25.

Groupon Stock Performance

The business's 50-day simple moving average is $21.39 and its two-hundred day simple moving average is $15.14. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 5.66. The firm has a market cap of $1.30 billion, a price-to-earnings ratio of 63.94 and a beta of 0.83.

Groupon (NASDAQ:GRPN - Get Free Report) last announced its quarterly earnings results on Wednesday, May 7th. The coupon company reported $0.18 earnings per share for the quarter, beating the consensus estimate of ($0.20) by $0.38. The firm had revenue of $117.19 million during the quarter, compared to analyst estimates of $115.51 million. Groupon had a return on equity of 91.94% and a net margin of 3.87%. As a group, sell-side analysts expect that Groupon, Inc. will post -0.31 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in GRPN. Continental General Insurance Co. purchased a new stake in shares of Groupon during the first quarter worth about $42,847,000. Tyro Capital Management LLC purchased a new position in shares of Groupon in the fourth quarter valued at approximately $20,964,000. Prentice Capital Management LP boosted its stake in shares of Groupon by 291.3% in the fourth quarter. Prentice Capital Management LP now owns 781,694 shares of the coupon company's stock worth $9,498,000 after acquiring an additional 581,943 shares during the last quarter. Prospect Capital Advisors LLC acquired a new stake in shares of Groupon in the fourth quarter worth approximately $2,935,000. Finally, Informed Momentum Co LLC purchased a new stake in shares of Groupon during the first quarter worth $4,148,000. 90.05% of the stock is owned by institutional investors and hedge funds.

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.