Groupon (NASDAQ:GRPN) Trading Down 6.3% - What's Next?

Key Points

• Groupon shares fell 6.3% to about $19.06 in midday trading, with volume down 91% from the stock’s average daily level.
• Northland Securities raised its 2026 and 2027 earnings forecasts and set a $30 price target, but analyst sentiment remains mixed; Groupon’s consensus rating is “Reduce” with an average target of $26.
• Groupon’s latest quarterly loss of $0.04 per share beat expectations, although revenue of $124.67 million fell short of estimates. Analysts still expect a full-year 2026 loss of $0.17 per share.

Shares of Groupon, Inc. (NASDAQ:GRPN - Get Free Report) were down 6.3% during mid-day trading on Thursday . The company traded as low as $19.28 and last traded at $19.0630. 153,143 shares were traded during mid-day trading, a decline of 91% from the average daily volume of 1,612,537 shares. The stock had previously closed at $20.35.

Key Groupon News

Here are the key news stories impacting Groupon this week:

• Positive Sentiment: Northland Securities raised its FY2026 EPS forecast to a loss of $0.06 from a loss of $0.20, while projecting positive EPS of $0.02 in the third quarter. The firm also lifted its FY2027 forecast to $1.13 per share from $0.98, with higher estimates for each quarter of 2027. The revisions suggest improving operating momentum and a potentially stronger earnings recovery. Northland Securities earnings estimates for Groupon
• Positive Sentiment: Groupon’s “mystery vacations” are reportedly going viral, giving the company increased consumer attention and potentially supporting bookings, revenue growth, and engagement if the trend converts into sustained demand. Groupon's mystery vacations are going viral
• Neutral Sentiment: The improved FY2026 and FY2027 projections come from a single analyst, while the broader consensus still expects Groupon to post a full-year 2026 loss of $0.17 per share. Investors may therefore want additional evidence from upcoming results before fully crediting the recovery outlook.
• Negative Sentiment: Northland slightly reduced its fourth-quarter 2026 EPS estimate to $0.28 from $0.29. Although the change is small and still implies profitability, it introduces some near-term caution and may be contributing to the weaker share performance.

Analysts Set New Price Targets

GRPN has been the subject of several recent analyst reports. Citigroup restated an "outperform" rating on shares of Groupon in a research report on Tuesday, June 9th. The Goldman Sachs Group reaffirmed a "sell" rating and issued a $22.00 price target on shares of Groupon in a report on Monday, August 10th. Wall Street Zen raised Groupon from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Weiss Ratings restated a "sell (d-)" rating on shares of Groupon in a research report on Tuesday, June 9th. Finally, Northland Securities set a $30.00 target price on shares of Groupon in a research note on Monday. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average price target of $26.00.

Groupon Trading Down 6.8%

The business's fifty day moving average price is $23.56 and its 200-day moving average price is $17.42. The company has a market capitalization of $771.10 million, a P/E ratio of -6.10 and a beta of 0.23.

Groupon (NASDAQ:GRPN - Get Free Report) last released its earnings results on Thursday, August 6th. The coupon company reported ($0.04) EPS for the quarter, beating analysts' consensus estimates 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, equities research analysts forecast that Groupon, Inc. will post -0.17 EPS for the current year.

Hedge Funds Weigh In On Groupon

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