Grab (NASDAQ:GRAB) Shares Down 5.4% - Should You Sell?

Key Points

• Grab shares fell 5.4% to $2.98 in mid-day trading, below both the 50-day ($3.32) and 200-day ($3.53) moving averages.
• Despite the decline, analysts maintain a consensus “Buy” rating with an average price target of $6.11; the company recently beat quarterly earnings and revenue estimates.
• Institutional investors own 55.52% of Grab, while insiders own 3.60%; CEO Ping Tan significantly increased his stake by purchasing 10.35 million shares, although insiders collectively sold shares over the past 90 days.

Grab Holdings Limited (NASDAQ:GRAB - Get Free Report) traded down 5.4% on Tuesday. The stock traded as low as $2.98 and last traded at $2.98. 48,296,508 shares traded hands during mid-day trading, a decline of 8% from the average daily volume of 52,746,508 shares. The stock had previously closed at $3.15.

Analyst Ratings Changes

A number of research firms recently issued reports on GRAB. Benchmark reissued a "buy" rating on shares of Grab in a research report on Tuesday, August 4th. Barclays reduced their target price on shares of Grab from $7.00 to $5.00 and set an "overweight" rating on the stock in a report on Thursday, July 9th. Morgan Stanley reaffirmed an "overweight" rating and set a $6.25 price target on shares of Grab in a research report on Tuesday, June 30th. KeyCorp set a $7.00 price target on Grab in a report on Wednesday, September 16th. Finally, Bank of America reissued a "buy" rating on shares of Grab in a research report on Friday, September 25th. Two 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. According to MarketBeat.com, Grab has a consensus rating of "Buy" and an average target price of $6.11.

Grab Price Performance

The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.51 and a current ratio of 1.52. The business's fifty day simple moving average is $3.32 and its 200 day simple moving average is $3.53. The stock has a market cap of $12.21 billion, a price-to-earnings ratio of 49.67, a price-to-earnings-growth ratio of 0.56 and a beta of 0.91.

Grab (NASDAQ:GRAB - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $0.06 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.01. The firm had revenue of $997.00 million during the quarter, compared to the consensus estimate of $994.97 million. Grab had a return on equity of 8.83% and a net margin of 15.97%. Research analysts predict that Grab Holdings Limited will post 0.14 EPS for the current fiscal year.

Insider Activity

In related news, CEO Ping Tan acquired 10,350,000 shares of Grab stock in a transaction on Monday, September 21st. The shares were purchased at an average cost of $2.89 per share, for a total transaction of $29,911,500.00. Following the purchase, the chief executive officer directly owned 10,778,498 shares of the company's stock, valued at $31,149,859.22. The trade was a 2,415.41% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Chin Ong sold 38,000 shares of the firm's 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 of the company's stock, valued at approximately $11,107,347.99. This represents a 1.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 819,349 shares of company stock worth $2,865,355 over the last ninety days. Insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On Grab

Hedge funds have recently bought and sold shares of the company. Assenagon Asset Management S.A. boosted its holdings in shares of Grab by 58.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 54,906,371 shares of the company's stock valued at $200,957,000 after buying an additional 20,152,535 shares during the period. Coronation Fund Managers Ltd. grew its position in shares of Grab by 74.5% during the 1st quarter. Coronation Fund Managers Ltd. now owns 32,601,355 shares of the company's stock valued at $119,321,000 after buying an additional 13,919,053 shares during the last quarter. Renaissance Technologies LLC bought a new stake in shares of Grab during the 1st quarter valued at about $48,731,000. Bank of America Corp DE lifted its holdings in Grab by 80.2% in the first quarter. Bank of America Corp DE now owns 23,993,894 shares of the company's stock worth $87,818,000 after acquiring an additional 10,681,810 shares during the last quarter. Finally, 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 during the period. 55.52% of the stock is currently owned by institutional investors and hedge funds.

Grab Company Profile

Grab Holdings Limited is a Singapore-based technology company that operates a superapp serving consumers, drivers, merchants and businesses across Southeast Asia. Its platform connects users with everyday services through a single digital application.

The company's main businesses include mobility services such as ride-hailing and taxi bookings, food and grocery delivery, and digital payments. Grab also provides financial services, including digital wallets, lending, insurance and other financial products, subject to local regulations.

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