GrowGeneration (NASDAQ:GRWG) Rating Increased to Buy at Alliance Global Partners

Key Points

• Alliance Global Partners upgraded GrowGeneration to “buy” from “neutral” and set a $2.50 price target, implying approximately 68% upside from the reported share price.
• GrowGeneration’s second-quarter results exceeded estimates, with $43.2 million in revenue and an adjusted loss of $0.03 per share; adjusted EBITDA improved to a $0.3 million profit, and management raised full-year EBITDA guidance to $2 million–$3 million.
• The outlook remains mixed: third-quarter revenue guidance of $44 million–$46 million trails consensus, the company remains unprofitable, and analyst opinions average a “hold” despite the upgrade.

GrowGeneration (NASDAQ:GRWG - Get Free Report) was upgraded by analysts at Alliance Global Partners from a "neutral" rating to a "buy" rating in a research report issued to clients and investors on Wednesday, Marketbeat Ratings reports. The brokerage presently has a $2.50 target price on the stock. Alliance Global Partners' price objective points to a potential upside of 67.79% from the stock's current price.

Separately, Weiss Ratings cut shares of GrowGeneration from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, GrowGeneration has an average rating of "Hold" and a consensus target price of $2.50.

GrowGeneration Stock Up 4.2%

Shares of NASDAQ GRWG opened at $1.49 on Wednesday. GrowGeneration has a 52 week low of $1.00 and a 52 week high of $2.40. The business's 50 day moving average price is $1.48 and its 200 day moving average price is $1.34. The firm has a market cap of $89.54 million, a P/E ratio of -4.66 and a beta of 2.51.

GrowGeneration (NASDAQ:GRWG - Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.04) by $0.01. GrowGeneration had a negative net margin of 11.91% and a negative return on equity of 19.50%. The company had revenue of $43.22 million during the quarter, compared to analyst estimates of $42.75 million. As a group, research analysts expect that GrowGeneration will post -0.22 earnings per share for the current year.

Insider Activity at GrowGeneration

In other news, CEO Darren Lampert acquired 64,098 shares of the company's stock in a transaction dated Monday, May 18th. The shares were acquired at an average price of $1.55 per share, with a total value of $99,351.90. Following the purchase, the chief executive officer directly owned 1,765,800 shares of the company's stock, valued at $2,736,990. This trade represents a 3.77% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. 8.06% of the stock is owned by insiders.

Institutional Trading of GrowGeneration

Several hedge funds and other institutional investors have recently added to or reduced their stakes in GRWG. Bank of America Corp DE raised its position in shares of GrowGeneration by 36.7% in the fourth quarter. Bank of America Corp DE now owns 60,104 shares of the company's stock worth $102,000 after acquiring an additional 16,132 shares during the period. AQR Capital Management LLC acquired a new stake in shares of GrowGeneration during the 1st quarter valued at about $27,000. XTX Topco Ltd acquired a new stake in GrowGeneration in the 2nd quarter valued at about $55,000. Jane Street Group LLC lifted its stake in GrowGeneration by 1,193.2% in the 2nd quarter. Jane Street Group LLC now owns 792,229 shares of the company's stock worth $741,000 after purchasing an additional 730,968 shares in the last quarter. Finally, Engineers Gate Manager LP purchased a new stake in shares of GrowGeneration in the second quarter valued at approximately $26,000. Institutional investors and hedge funds own 36.02% of the company's stock.

Key Stories Impacting GrowGeneration

Here are the key news stories impacting GrowGeneration this week:

• Positive Sentiment: GrowGeneration reported second-quarter revenue of $43.2 million, up 5.5% year over year and above the $42.75 million analyst estimate. The company’s adjusted EBITDA improved to a $0.3 million profit from a $1.3 million loss a year earlier, while its net loss narrowed to $2.0 million from $4.8 million. GrowGeneration Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Adjusted EPS of -$0.03 beat the consensus estimate of -$0.04. Gross margin edged up to 28.5%, proprietary-brand penetration increased to 39.7% of cultivation and gardening revenue, and operating expenses declined significantly. GrowGeneration Reports Q2 Loss, Beats Revenue Estimates
• Positive Sentiment: Management raised full-year 2026 adjusted EBITDA guidance to $2 million-$3 million, reaffirmed revenue guidance of $162 million-$168 million, and ended the quarter with $41 million in cash and marketable securities and no debt. GrowGeneration Expects 2026 Adjusted EBITDA
• Neutral Sentiment: Analysts are comparing GrowGeneration with Winmark, highlighting differences in business models, valuation, growth prospects and risk. The comparison does not represent a new company-specific catalyst. Analyzing GrowGeneration and Winmark
• Negative Sentiment: Third-quarter revenue guidance of $44 million-$46 million is below the $46.9 million consensus estimate. GrowGeneration also remains unprofitable, with a negative net margin and negative return on equity, keeping execution and demand concerns in focus. GrowGeneration Q3 Guidance

GrowGeneration Company Profile

GrowGeneration Corp. is the largest chain of specialty hydroponic and organic garden centers in the United States, serving commercial and home growers of all experience levels. The company offers a broad assortment of cultivation supplies, including high-efficiency LED lighting, climate control systems, irrigation and fertigation equipment, growing media and nutrients. Through its retail outlets and e-commerce platform, GrowGeneration caters to indoor and outdoor horticultural operations, with a particular focus on the rapidly expanding legal cannabis market.

In addition to its product offerings, GrowGeneration provides design, consulting and project management services for turnkey cultivation facilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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