Groupon (NASDAQ:GRPN) Trading Up 7.5% - What's Next?

Key Points

• Groupon shares rose 7.5% on Tuesday, trading as high as $25.27, though volume was well below average at about 553,410 shares versus the normal 1.64 million.
• Analyst sentiment remains mixed: recent moves included a downgrade to sell from Wall Street Zen, while Citigroup reiterated an outperform rating. MarketBeat says the stock currently has an average rating of Hold with a $19.50 price target.
• The company’s latest earnings missed expectations, reporting -$0.32 EPS versus a consensus loss of $0.02, and revenue of $117.2 million was slightly below estimates. Groupon also has a negative full-year earnings outlook of -$0.16 EPS.

Groupon, Inc. (NASDAQ:GRPN - Get Free Report) shares traded up 7.5% on Tuesday . The company traded as high as $25.27 and last traded at $25.3140. Approximately 553,410 shares were traded during trading, a decline of 66% from the average session volume of 1,636,607 shares. The stock had previously closed at $23.54.

Analyst Ratings Changes

GRPN has been the topic of several research reports. Wall Street Zen downgraded shares of Groupon from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. Northland Securities set a $26.00 price target on shares of Groupon in a research report on Wednesday, May 27th. The Goldman Sachs Group reiterated a "sell" rating and issued a $13.00 price objective (up from $10.00) on shares of Groupon in a research note on Tuesday, May 12th. Weiss Ratings reissued a "sell (d-)" rating on shares of Groupon in a report on Tuesday, June 9th. Finally, Citigroup restated an "outperform" rating on shares of Groupon in a research report on Tuesday, June 9th. Two investment analysts have 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, Groupon currently has an average rating of "Hold" and an average price target of $19.50.

Groupon Trading Up 5.7%

The stock has a market cap of $945.17 million, a P/E ratio of -9.52 and a beta of 0.23. The stock has a 50 day simple moving average of $19.53 and a 200 day simple moving average of $15.77.

Groupon (NASDAQ:GRPN - Get Free Report) last released its earnings results on Thursday, May 7th. The coupon company reported ($0.32) earnings per share for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.30). The firm had revenue of $117.20 million during the quarter, compared to analysts' expectations of $117.65 million. Equities analysts anticipate that Groupon, Inc. will post -0.16 earnings per share for the current year.

Institutional Investors Weigh In On Groupon

A number of large investors have recently bought and sold shares of the company. Versant Capital Management Inc increased its holdings in Groupon by 92.7% in the 2nd 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. Caitong International Asset Management Co. Ltd bought a new position in Groupon in the third quarter valued at approximately $32,000. Johnson Financial Group Inc. acquired a new position in Groupon during the fourth quarter valued at approximately $35,000. Quarry LP raised its position in Groupon by 48.1% during the third quarter. Quarry LP now owns 1,938 shares of the coupon company's stock valued at $45,000 after purchasing an additional 629 shares in the last quarter. Finally, Raymond James Financial Inc. bought a new stake in Groupon during the second quarter worth $69,000. 90.05% of the stock is currently owned by institutional investors and hedge funds.

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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