Grocery Outlet (NASDAQ:GO) Hits New 1-Year High - What's Next?

Key Points

• Grocery Outlet shares hit a 52-week high, trading around $14.03, above their 50-day and 200-day averages.
• Analyst sentiment remains cautious despite Bank of America upgrading the stock to Buy: consensus is “Reduce,” with an average price target of $10.50—below the current share price.
• The company beat quarterly earnings and revenue estimates, while two insiders recently bought shares, including a director who purchased 15,000 shares.

Grocery Outlet Holding Corp. (NASDAQ:GO - Get Free Report) shares reached a new 52-week high during mid-day trading on Tuesday. The stock traded as high as $14.02 and last traded at $14.0310, with a volume of 1,007,644 shares changing hands. The stock had previously closed at $13.87.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $9.00 price objective on shares of Grocery Outlet in a research report on Thursday, August 13th. Bank of America raised Grocery Outlet from a "neutral" rating to a "buy" rating and lifted their target price for the company from $12.50 to $15.00 in a research report on Wednesday, September 30th. DA Davidson upped their price target on Grocery Outlet from $9.00 to $12.00 and gave the stock a "neutral" rating in a research report on Thursday, August 13th. Wells Fargo & Company raised their price target on shares of Grocery Outlet from $9.00 to $11.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 13th. Finally, Roth Capital reiterated a "neutral" rating and issued a $10.00 price objective on shares of Grocery Outlet in a report on Thursday, August 13th. One equities research analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $10.50.

Grocery Outlet Price Performance

The company has a market cap of $1.40 billion, a P/E ratio of -3.66, a PEG ratio of 9.52 and a beta of 0.64. The company has a fifty day moving average price of $12.17 and a two-hundred day moving average price of $9.68. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.30 and a current ratio of 1.29.

Grocery Outlet (NASDAQ:GO - Get Free Report) last released its earnings results on Wednesday, August 12th. The company reported $0.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.13 by $0.07. Grocery Outlet had a positive return on equity of 5.84% and a negative net margin of 8.04%. The business had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same quarter in the prior year, the company posted $0.23 earnings per share. Grocery Outlet's revenue was up 1.1% on a year-over-year basis. On average, sell-side analysts anticipate that Grocery Outlet Holding Corp. will post 0.42 earnings per share for the current fiscal year.

Insider Buying and Selling at Grocery Outlet

In other news, Director Carey Jaros bought 15,000 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were acquired at an average cost of $11.70 per share, for a total transaction of $175,500.00. Following the completion of the acquisition, the director owned 60,000 shares in the company, valued at approximately $702,000. This represents a 33.33% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Paul Miller purchased 8,000 shares of the company's stock in a transaction on Thursday, August 20th. The shares were purchased at an average cost of $10.90 per share, for a total transaction of $87,200.00. Following the completion of the transaction, the insider directly owned 72,171 shares of the company's stock, valued at approximately $786,663.90. This represents a 12.47% increase in their position. The disclosure for this purchase is available in the SEC filing. 5.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Grocery Outlet

A number of institutional investors and hedge funds have recently modified their holdings of the company. Edgestream Partners L.P. bought a new position in Grocery Outlet during the third quarter worth about $387,000. Intech Investment Management LLC lifted its position in shares of Grocery Outlet by 23.2% in the third quarter. Intech Investment Management LLC now owns 23,431 shares of the company's stock valued at $264,000 after buying an additional 4,417 shares during the last quarter. Russell Investments Group Ltd. lifted its position in shares of Grocery Outlet by 5.0% in the third quarter. Russell Investments Group Ltd. now owns 56,809 shares of the company's stock valued at $639,000 after buying an additional 2,682 shares during the last quarter. Maryland State Retirement & Pension System lifted its position in shares of Grocery Outlet by 54.7% in the third quarter. Maryland State Retirement & Pension System now owns 22,102 shares of the company's stock valued at $249,000 after buying an additional 7,818 shares during the last quarter. Finally, Fulcrum Asset Management LLP boosted its stake in shares of Grocery Outlet by 3,509.1% during the 3rd quarter. Fulcrum Asset Management LLP now owns 11,838 shares of the company's stock worth $130,000 after acquiring an additional 11,510 shares during the period. 99.87% of the stock is owned by institutional investors.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. operates Grocery Outlet Bargain Market, a discount grocery chain offering brand-name products and private-label items at value-oriented prices. Its stores carry a range of goods, including groceries, fresh produce, meat, dairy, frozen foods and household products. The company uses opportunistic buying to source products, which can result in changing assortments and limited-time deals. Founded in 1946 by Jim Read, Grocery Outlet has grown from a California-based business into a retailer serving communities across the western United States and parts of the East Coast.

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