Groupon (NASDAQ:GRPN) Shares Gap Up - Should You Buy?

Key Points

• Groupon's stock price gapped up from **$22.83** to **$23.80** before market opening, with the last traded price at **$23.85** and a volume of **169,177** shares.
• Analysts have issued mixed ratings, with **Northland Securities** raising their price target to **$44.00** and **Roth Capital** to **$47.00**, while the company has a consensus rating of **"Moderate Buy"** with an average target price of **$29.80**.
• Groupon reported **$0.46 earnings per share**, significantly beating the consensus estimate of **($0.02)**, and had revenues of **$125.70 million** for the last quarter.

Shares of Groupon, Inc. (NASDAQ:GRPN - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $22.83, but opened at $23.80. Groupon shares last traded at $23.85, with a volume of 169,177 shares.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. UBS Group started coverage on Groupon in a report on Thursday, August 7th. They issued a "mixed" rating on the stock. Wall Street Zen lowered shares of Groupon from a "strong-buy" rating to a "buy" rating in a research report on Friday, September 5th. Northland Securities raised their target price on shares of Groupon from $39.00 to $44.00 and gave the company an "outperform" rating in a report on Monday, August 11th. Finally, Roth Capital upped their price target on shares of Groupon from $33.00 to $47.00 and gave the company a "buy" rating in a report on Friday, June 20th. Four research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $29.80.

Groupon Stock Up 0.4%

The firm has a fifty day moving average price of $28.45 and a 200-day moving average price of $25.72. The firm has a market cap of $910.48 million, a price-to-earnings ratio of -93.83 and a beta of 0.68. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 4.16.

Groupon (NASDAQ:GRPN - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The coupon company reported $0.46 earnings per share for the quarter, topping the consensus estimate of ($0.02) by $0.48. The business had revenue of $125.70 million for the quarter, compared to analyst estimates of $122.46 million. Groupon had a negative net margin of 1.89% and a negative return on equity of 19.61%. As a group, sell-side analysts forecast that Groupon, Inc. will post -0.31 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in GRPN. USA Financial Formulas purchased a new position in shares of Groupon in the second quarter valued at $57,000. Raymond James Financial Inc. bought a new stake in shares of Groupon in the second quarter worth $69,000. AlphaQuest LLC grew its holdings in Groupon by 383.5% during the 1st quarter. AlphaQuest LLC now owns 3,718 shares of the coupon company's stock worth $70,000 after acquiring an additional 2,949 shares in the last quarter. Tower Research Capital LLC TRC raised its stake in shares of Groupon by 386.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,547 shares of the coupon company's stock valued at $85,000 after purchasing an additional 2,023 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co acquired a new position in Groupon in the second quarter worth about $110,000. 90.05% of the stock is owned by hedge funds and other institutional investors.

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.