Grab (NASDAQ:GRAB) Shares Down 2.4% - Here's What Happened

Key Points

• Grab shares fell 2.4% to $2.87, with trading volume down 26% from the average daily level.
• Analyst sentiment remains broadly positive: the stock has a consensus “Buy” rating and a $6.01 target price, despite one downgrade to “Sell.”
• Grab exceeded quarterly expectations, reporting $0.06 EPS versus $0.05 expected and revenue of $997 million versus a $994.97 million consensus estimate; insiders showed mixed activity, including a large COO purchase and additional insider sales.

Grab Holdings Limited (NASDAQ:GRAB - Get Free Report) traded down 2.4% on Monday. The company traded as low as $2.86 and last traded at $2.87. 39,206,800 shares traded hands during trading, a decline of 26% from the average daily volume of 52,783,430 shares. The stock had previously closed at $2.94.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. Bank of America reissued a "buy" rating on shares of Grab in a research report on Friday, September 25th. Zacks Research upgraded Grab from a "hold" rating to a "strong-buy" rating in a report on Tuesday, October 6th. Morgan Stanley reissued an "overweight" rating and issued a $6.25 price target on shares of Grab in a research note on Tuesday, June 30th. Weiss Ratings lowered Grab from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, August 17th. Finally, Benchmark reiterated a "buy" rating on shares of Grab in a research note on Tuesday, August 4th. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $6.01.

Grab Price Performance

The firm has a market capitalization of $11.76 billion, a P/E ratio of 47.84, a price-to-earnings-growth ratio of 0.52 and a beta of 0.91. The business has a 50-day moving average of $3.26 and a 200 day moving average of $3.51. 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 released its quarterly earnings data on Tuesday, August 4th. The company reported $0.06 EPS for the quarter, beating the consensus estimate of $0.05 by $0.01. Grab had a return on equity of 8.83% and a net margin of 15.97%. The firm had revenue of $997.00 million during the quarter, compared to the consensus estimate of $994.97 million. On average, sell-side analysts predict that Grab Holdings Limited will post 0.14 earnings per share for the current fiscal year.

Insider Buying and Selling at Grab

In related news, COO Alexander Hungate purchased 299,571 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was acquired at an average cost of $2.89 per share, with a total value of $865,760.19. Following the transaction, the chief operating officer owned 6,411,550 shares of the company's stock, valued at $18,529,379.50. This represents a 4.90% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Chin Ong sold 38,000 shares of Grab stock in a transaction on Monday, October 5th. The stock was sold at an average price of $3.09, for a total transaction of $117,420.00. Following the transaction, the insider directly owned 3,594,611 shares in the company, valued at $11,107,347.99. This represents a 1.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 819,349 shares of company stock worth $2,865,355. 3.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Grab

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Grab in the fourth quarter worth $25,000. Montag A & Associates Inc. purchased a new position in shares of Grab in the 1st quarter worth about $27,000. Fermata Advisors LLC purchased a new position in shares of Grab in the 3rd quarter worth about $31,000. Strategic Global Advisors LLC bought a new position in Grab during the second quarter valued at about $41,000. Finally, 71 West Capital Partners bought a new position in Grab during the second quarter valued at about $43,000. Hedge funds and other institutional investors own 55.52% of the company's stock.

About Grab

Grab Holdings Inc NASDAQ: GRAB is a technology company that operates a superapp serving consumers, drivers, merchants and businesses across Southeast Asia. The company began as a ride-hailing service in Malaysia in 2012 and is headquartered in Singapore.

Grab's platform provides mobility services, including ride-hailing, taxi bookings and other transportation options. It also offers food, grocery and package deliveries, connecting users with restaurants, retailers and delivery partners through its digital marketplace.

In addition, Grab provides digital financial services in selected markets, including payments, consumer and merchant lending, digital banking and insurance-related products.

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