Grab (NASDAQ:GRAB) Stock Falls 2.3% - What's Next?

Key Points

• Grab shares fell 2.3% to $2.91 in heavy trading, below both the 50-day moving average of $3.31 and the 200-day average of $3.52.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and an average price target of $6.11, despite mixed revisions ranging from Barclays’ lower target to Zacks Research’s upgrade.
• Grab exceeded quarterly expectations with $0.06 in EPS versus $0.05 expected and $997 million in revenue; meanwhile, the CEO and COO made significant stock purchases, while institutional investors own 55.52% of the company.

Grab Holdings Limited (NASDAQ:GRAB - Get Free Report)'s stock price was down 2.3% on Wednesday. The stock traded as low as $2.85 and last traded at $2.91. 58,803,215 shares changed hands during mid-day trading, an increase of 11% from the average daily volume of 52,776,332 shares. The stock had previously closed at $2.98.

Analyst Ratings Changes

A number of brokerages have issued reports on GRAB. Zacks Research raised shares of Grab from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, October 6th. Barclays decreased their price objective on shares of Grab from $7.00 to $5.00 and set an "overweight" rating for the company in a report on Thursday, July 9th. Weiss Ratings cut shares of Grab from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, August 17th. Morgan Stanley reaffirmed an "overweight" rating and set a $6.25 target price on shares of Grab in a research note on Tuesday, June 30th. Finally, Benchmark reiterated a "buy" rating on shares of Grab in a research report 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 assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $6.11.

Grab Stock Performance

The company has a market capitalization of $11.92 billion, a PE ratio of 48.51, a PEG ratio of 0.55 and a beta of 0.91. The company has a 50 day moving average of $3.31 and a two-hundred day moving average of $3.52. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.52 and a quick ratio of 1.51.

Grab (NASDAQ:GRAB - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.05 by $0.01. The business 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%. As a group, equities research analysts predict that Grab Holdings Limited will post 0.14 earnings per share for the current year.

Insider Transactions at Grab

In other Grab news, CEO Ping Tan acquired 10,350,000 shares of the business's stock in a transaction on Monday, September 21st. The shares were acquired at an average price of $2.89 per share, for a total transaction of $29,911,500.00. Following the completion of the acquisition, the chief executive officer owned 10,778,498 shares in the company, valued at $31,149,859.22. This trade represents a 2,415.41% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Alexander Hungate bought 299,571 shares of the stock in a transaction dated Monday, September 21st. The shares were acquired at an average price of $2.89 per share, with a total value of $865,760.19. Following the completion of the acquisition, the chief operating officer directly owned 6,411,550 shares of the company's stock, valued at approximately $18,529,379.50. The trade was a 4.90% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders sold 819,349 shares of company stock worth $2,865,355. 3.60% of the stock is owned by insiders.

Institutional Trading of Grab

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Assenagon Asset Management S.A. grew its stake in shares of Grab by 58.0% in the first 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 during the period. Coronation Fund Managers Ltd. raised its holdings in shares of Grab by 74.5% during the first quarter. Coronation Fund Managers Ltd. now owns 32,601,355 shares of the company's stock valued at $119,321,000 after purchasing an additional 13,919,053 shares during the last quarter. Renaissance Technologies LLC purchased a new position in shares of Grab during the first quarter valued at approximately $48,731,000. Bank of America Corp DE raised its holdings in shares of Grab by 80.2% during the first quarter. Bank of America Corp DE now owns 23,993,894 shares of the company's stock valued at $87,818,000 after purchasing an additional 10,681,810 shares during the last quarter. Finally, BlackRock Inc. lifted its position in Grab by 6.4% during the second quarter. BlackRock Inc. now owns 156,175,807 shares of the company's stock valued at $588,783,000 after purchasing an additional 9,357,389 shares during the period. Hedge funds and other institutional investors own 55.52% of the company's stock.

About Grab

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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