Groupon (NASDAQ:GRPN) Stock Crosses Above 200 Day Moving Average - Here's Why

Key Points

• Groupon shares rose above their 200-day moving average of $17.38, reaching $20.73 and closing around $20.22 on volume of approximately 1.3 million shares.
• Analyst sentiment remains cautious: Groupon has a consensus “Reduce” rating and a $26 target price, with ratings ranging from Buy to Sell. Goldman Sachs maintained a Sell rating, while Northland Securities set a $30 target.
• Groupon’s latest quarter showed an adjusted loss of $0.04 per share, better than the $0.06 loss expected, but revenue of $124.67 million fell short of the $127.09 million consensus estimate; institutional investors own about 90.05% of the stock.

Shares of Groupon, Inc. (NASDAQ:GRPN - Get Free Report) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $17.38 and traded as high as $20.73. Groupon shares last traded at $20.22, with a volume of 1,296,059 shares trading hands.

Analysts Set New Price Targets

Several research firms have recently weighed in on GRPN. The Goldman Sachs Group restated a "sell" rating and set a $22.00 price objective on shares of Groupon in a research note on Monday, August 10th. Citigroup reiterated an "outperform" rating on shares of Groupon in a research note on Tuesday, June 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Groupon in a report on Tuesday, June 9th. Northland Securities set a $30.00 price target on Groupon in a research report on Monday. Finally, Wall Street Zen upgraded Groupon from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $26.00.

Groupon Price Performance

The stock's 50-day simple moving average is $23.48 and its 200 day simple moving average is $17.38. The stock has a market capitalization of $822.25 million, a P/E ratio of -6.50 and a beta of 0.23.

Groupon (NASDAQ:GRPN - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The coupon company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.02. The company had revenue of $124.67 million during the quarter, compared to the consensus estimate of $127.09 million. As a group, analysts expect that Groupon, Inc. will post -0.17 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Versant Capital Management Inc boosted its stake in shares of Groupon by 92.7% in the second quarter. Versant Capital Management Inc now owns 1,299 shares of the coupon company's stock valued at $31,000 after buying an additional 625 shares during the period. Quarry LP increased its stake in Groupon by 48.1% during the 3rd quarter. Quarry LP now owns 1,938 shares of the coupon company's stock worth $45,000 after acquiring an additional 629 shares during the period. Royal Bank of Canada raised its holdings in Groupon by 10.6% in the 1st quarter. Royal Bank of Canada now owns 7,618 shares of the coupon company's stock valued at $90,000 after acquiring an additional 731 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in Groupon in the 3rd quarter valued at $32,000. Finally, Franklin Resources Inc. lifted its position in shares of Groupon by 6.9% during the 4th quarter. Franklin Resources Inc. now owns 21,340 shares of the coupon company's stock valued at $376,000 after acquiring an additional 1,377 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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