Groupon (NASDAQ:GRPN) Shares Down 8.3% - Should You 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) shares dropped 8.3% on Friday . The stock traded as low as $34.09 and last traded at $33.84. Approximately 1,069,923 shares traded hands during mid-day 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

GRPN has been the topic of several research reports. Wall Street Zen upgraded shares of Groupon from a "buy" rating to a "strong-buy" rating in a research report on Saturday. The Goldman Sachs Group lifted their price objective on shares of Groupon from $9.00 to $15.00 and gave the stock a "sell" rating in a research note on Monday, May 12th. Roth Capital lifted their price objective on shares of Groupon from $33.00 to $47.00 and gave the stock a "buy" rating in a research note on Friday, June 20th. Roth Mkm lifted their price objective on shares of Groupon from $21.00 to $24.00 and gave the stock a "buy" rating in a research note on Tuesday, April 29th. Finally, Northland Securities lifted their price objective on shares of Groupon from $39.00 to $44.00 and gave the stock an "outperform" rating in a research note on Monday. One research analyst has rated the stock with a sell rating, four have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, Groupon presently has a consensus rating of "Moderate Buy" and a consensus price target of $29.80.

Groupon Trading Down 1.6%

The stock has a 50-day moving average of $33.75 and a 200 day moving average of $23.16. The stock has a market cap of $1.21 billion, a PE ratio of -124.79 and a beta of 1.15. 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 issued its earnings results on Wednesday, August 6th. The coupon company reported $0.46 EPS for the quarter, beating analysts' consensus estimates of ($0.02) by $0.48. Groupon had a negative return on equity of 19.61% and a negative net margin of 1.89%. The firm had revenue of $125.70 million for the quarter, compared to analyst estimates of $122.46 million. As a group, sell-side analysts anticipate that Groupon, Inc. will post -0.31 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in GRPN. USA Financial Formulas purchased a new position in Groupon in the 2nd quarter valued at $57,000. AlphaQuest LLC raised its holdings in shares of 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 during the period. JPMorgan Chase & Co. raised its holdings in shares of Groupon by 115.6% during the 4th quarter. JPMorgan Chase & Co. now owns 10,559 shares of the coupon company's stock worth $128,000 after acquiring an additional 78,423 shares during the period. Wells Fargo & Company MN raised its holdings in shares of Groupon by 36.4% during the 4th quarter. Wells Fargo & Company MN now owns 12,519 shares of the coupon company's stock worth $152,000 after acquiring an additional 3,342 shares during the period. Finally, KLP Kapitalforvaltning AS purchased a new position in shares of Groupon during the 2nd quarter worth $177,000. Hedge funds and other institutional investors own 90.05% of the company's stock.

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.