Groupon (NASDAQ:GRPN) Stock Price Down 7.8% - Should You Sell?

Key Points

• Groupon shares fell 7.8% to about $23.09 in mid-day trading, with volume down 78% from the average. The stock remains above its 50-day and 200-day moving averages.
• Analyst sentiment is mixed, with an overall “Hold” consensus and an average price target of $24.00. Goldman Sachs maintained a Sell rating with a $22 target, while Citigroup reiterated Outperform.
• Groupon’s latest quarterly results beat EPS expectations, reporting a loss of $0.04 per share versus the projected $0.06 loss, but revenue of $124.67 million fell short of estimates. Institutional investors own approximately 90.05% of the company’s shares.

Groupon, Inc. (NASDAQ:GRPN - Get Free Report) shares traded down 7.8% during mid-day trading on Monday . The stock traded as low as $23.00 and last traded at $23.09. Approximately 355,267 shares traded hands during mid-day trading, a decline of 78% from the average daily volume of 1,621,708 shares. The stock had previously closed at $25.03.

Analyst Upgrades and Downgrades

A number of research analysts have commented on GRPN shares. Citigroup reiterated an "outperform" rating on shares of Groupon in a research report on Tuesday, June 9th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Groupon in a research note on Tuesday, June 9th. Northland Securities set a $26.00 target price on shares of Groupon in a report on Wednesday, May 27th. Wall Street Zen upgraded shares of Groupon from a "sell" rating to a "hold" rating in a research report on Saturday. Finally, The Goldman Sachs Group reissued a "sell" rating and issued a $22.00 price target on shares of Groupon in a research note on Monday. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Groupon currently has an average rating of "Hold" and a consensus price target of $24.00.

Groupon Stock Down 7.9%

The stock has a market cap of $875.42 million, a P/E ratio of -7.43 and a beta of 0.23. The company has a 50-day simple moving average of $22.91 and a two-hundred day simple moving average of $17.11.

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

Hedge Funds Weigh In On Groupon

Several hedge funds and other institutional investors have recently modified their holdings of GRPN. Versant Capital Management Inc grew 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 worth $31,000 after purchasing an additional 625 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new position in Groupon during the 3rd quarter valued at approximately $32,000. Johnson Financial Group Inc. bought a new position in Groupon during the 4th quarter valued at approximately $35,000. Quarry LP lifted its holdings in Groupon by 48.1% in the 3rd quarter. Quarry LP now owns 1,938 shares of the coupon company's stock worth $45,000 after buying an additional 629 shares during the period. Finally, Raymond James Financial Inc. purchased a new stake in Groupon in the 2nd quarter worth approximately $69,000. 90.05% of the stock is owned by institutional investors.

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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