Grab (NASDAQ:GRAB) Sets New 1-Year Low - Should You Sell?

Key Points

• Grab shares fell to a new 52-week low of $2.96, below the stock’s 50-day and 200-day moving averages of $3.54 and $3.65, respectively.
• Despite the decline, analysts maintain a generally positive outlook: Grab has a consensus “Moderate Buy” rating and an average price target of $6.01, although Barclays recently lowered its target to $5.00 and Weiss Ratings downgraded the stock to “sell.”
• Grab exceeded quarterly expectations, reporting $0.06 in EPS versus $0.05 expected and revenue of $997 million. However, insiders sold 1.28 million shares worth approximately $4.7 million over the past 90 days.

Grab Holdings Limited (NASDAQ:GRAB - Get Free Report)'s share price reached a new 52-week low on Tuesday . The company traded as low as $2.96 and last traded at $2.9650, with a volume of 19959969 shares traded. The stock had previously closed at $3.02.

Wall Street Analysts Forecast Growth

GRAB has been the subject of a number of research analyst reports. Zacks Research upgraded Grab from a "strong sell" rating to a "hold" rating in a research note on Tuesday, June 2nd. Morgan Stanley reaffirmed an "overweight" rating and issued a $6.25 price objective on shares of Grab in a research report on Tuesday, June 30th. Benchmark reiterated a "buy" rating on shares of Grab in a research note on Tuesday, August 4th. Weiss Ratings downgraded shares of Grab from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, August 17th. Finally, Barclays cut their target price on Grab from $7.00 to $5.00 and set an "overweight" rating on the stock in a research report on Thursday, July 9th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $6.01.

Grab Price Performance

The firm has a market capitalization of $11.99 billion, a PE ratio of 48.76, a P/E/G ratio of 0.80 and a beta of 0.89. The firm's fifty day moving average price is $3.54 and its 200 day moving average price is $3.65. The company has a current ratio of 1.52, a quick ratio of 1.51 and a debt-to-equity ratio of 0.06.

Grab (NASDAQ:GRAB - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $0.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.05 by $0.01. The company had revenue of $997.00 million during the quarter, compared to the consensus estimate of $994.97 million. Grab had a net margin of 15.97% and a return on equity of 8.83%. As a group, equities analysts forecast that Grab Holdings Limited will post 0.13 earnings per share for the current year.

Insider Transactions at Grab

In related news, insider Chin Ong sold 38,000 shares of the stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $3.61, for a total transaction of $137,180.00. Following the sale, the insider directly owned 3,670,611 shares of the company's stock, valued at approximately $13,250,905.71. This represents a 1.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Alexander Hungate sold 145,349 shares of the firm's stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $3.48, for a total transaction of $505,814.52. Following the sale, the chief operating officer owned 6,111,979 shares in the company, valued at approximately $21,269,686.92. This represents a 2.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,283,442 shares of company stock worth $4,719,095. Insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On Grab

A number of large investors have recently bought and sold shares of the business. BlackRock Inc. boosted its stake in Grab by 6.4% in the second quarter. BlackRock Inc. now owns 156,175,807 shares of the company's stock valued at $588,783,000 after acquiring an additional 9,357,389 shares in the last quarter. Assenagon Asset Management S.A. boosted its stake in shares of Grab by 58.0% during the 1st quarter. Assenagon Asset Management S.A. now owns 54,906,371 shares of the company's stock worth $200,957,000 after acquiring an additional 20,152,535 shares in the last quarter. WFM ASIA BVI Ltd raised its stake in shares of Grab by 12.5% during the 4th quarter. WFM ASIA BVI Ltd now owns 37,675,992 shares of the company's stock worth $188,003,000 after buying an additional 4,194,477 shares during the last quarter. Norges Bank acquired a new stake in Grab during the 4th quarter valued at $161,484,000. Finally, Artisan Partners Limited Partnership raised its position in shares of Grab by 5.0% in the fourth quarter. Artisan Partners Limited Partnership now owns 27,977,786 shares of the company's stock valued at $139,609,000 after buying an additional 1,340,082 shares during the last quarter. Institutional investors and hedge funds own 55.52% of the company's stock.

Grab Company Profile

Grab Holdings Inc NASDAQ: GRAB is a technology company that operates a superapp serving consumers, drivers, merchants and businesses across Southeast Asia. Its platform connects users with transportation, food and grocery delivery, parcel and on-demand logistics, digital payments and other financial services.

The company began as a ride-hailing service in Malaysia in 2012, founded by Anthony Tan and Tan Hooi Ling, and expanded into a broader digital platform. Grab's consumer offerings include private-hire and taxi services, GrabFood, GrabMart and GrabExpress, while its financial-services products include digital payments, lending, insurance and digital banking services offered in selected markets.

Grab serves markets across Southeast Asia, including Singapore, Malaysia, Indonesia, Thailand, Vietnam, the Philippines and Cambodia.

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