Groupon (NASDAQ:GRPN) Stock Price Down 8.3% - Time to Sell?

Key Points

• Groupon's stock price fell by 8.3% to $33.84, with trading volume down 27% from the average daily volume.
• Analysts have mixed opinions, with some raising their price targets and giving a "buy" rating, while others maintain a "sell" rating; the average rating is a "Moderate Buy" with a consensus target price of $28.00.
• Groupon reported a positive earnings per share of $0.46 for the last quarter, surpassing expectations, but has a negative net margin of 1.89% and a negative return on equity of 20.65%.

Groupon, Inc. (NASDAQ:GRPN - Get Free Report)'s stock price was down 8.3% during trading on Friday . The company traded as low as $34.09 and last traded at $33.84. Approximately 1,069,923 shares changed hands during trading, a decline of 27% from the average daily volume of 1,470,842 shares. The stock had previously closed at $36.89.

Wall Street Analyst Weigh In

Several brokerages have weighed in on GRPN. Roth Mkm increased their price target on shares of Groupon from $21.00 to $24.00 and gave the company a "buy" rating in a research report on Tuesday, April 29th. Northland Securities raised their target price on Groupon from $30.00 to $35.00 and gave the stock an "outperform" rating in a research note on Tuesday, June 3rd. Roth Capital boosted their price target on Groupon from $33.00 to $47.00 and gave the company a "buy" rating in a report on Friday, June 20th. The Goldman Sachs Group increased their price objective on Groupon from $9.00 to $15.00 and gave the stock a "sell" rating in a report on Monday, May 12th. Finally, UBS Group began coverage on Groupon in a research note on Thursday. They set a "mixed" rating on the stock. One analyst has rated the stock with a sell rating and five have given a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $28.00.

Groupon Stock Performance

The firm has a market capitalization of $1.31 billion, a P/E ratio of -137.41 and a beta of 1.15. The company has a 50-day simple moving average of $33.73 and a two-hundred day simple moving average of $22.64. The company has a debt-to-equity ratio of 4.23, a quick ratio of 0.89 and a current ratio of 0.89.

Groupon (NASDAQ:GRPN - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The coupon company reported $0.46 earnings per share for the quarter, beating analysts' consensus estimates of ($0.02) by $0.48. The business had revenue of $125.70 million during 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 20.65%. As a group, equities analysts forecast that Groupon, Inc. will post -0.31 EPS for the current year.

Institutional Trading of Groupon

Institutional investors have recently added to or reduced their stakes in the business. American Century Companies Inc. boosted its position in shares of Groupon by 90.3% during the fourth quarter. American Century Companies Inc. now owns 22,596 shares of the coupon company's stock valued at $275,000 after buying an additional 10,722 shares during the last quarter. KLP Kapitalforvaltning AS bought a new position in shares of Groupon in the 4th quarter worth approximately $41,000. JPMorgan Chase & Co. grew its position in Groupon by 115.6% during the fourth quarter. JPMorgan Chase & Co. now owns 10,559 shares of the coupon company's stock valued at $128,000 after buying an additional 78,423 shares during the period. Wells Fargo & Company MN increased its holdings in Groupon by 36.4% during the fourth quarter. Wells Fargo & Company MN now owns 12,519 shares of the coupon company's stock valued at $152,000 after buying an additional 3,342 shares during the last quarter. Finally, Barclays PLC increased its holdings in Groupon by 25.6% during the fourth quarter. Barclays PLC now owns 69,330 shares of the coupon company's stock valued at $842,000 after buying an additional 14,120 shares during the last quarter. 90.05% of the stock is currently 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.

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