Grocery Outlet (NASDAQ:GO) Stock Price Down 4.7% - What's Next?

Shares of Grocery Outlet Holding Corp. (NASDAQ:GO - Get Free Report) fell 4.7% during mid-day trading on Thursday . The company traded as low as $11.65 and last traded at $11.64. Approximately 717,381 shares were traded during mid-day trading, a decline of 77% from the average session volume of 3,121,413 shares. The stock had previously closed at $12.21.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on GO. UBS Group increased their price objective on Grocery Outlet from $10.00 to $11.50 and gave the stock a "neutral" rating in a report on Monday, August 17th. Wells Fargo & Company raised their price target on Grocery Outlet from $9.00 to $11.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 13th. Weiss Ratings upgraded Grocery Outlet from a "sell (d-)" rating to a "sell (d)" rating in a report on Thursday, August 13th. Roth Capital reissued a "neutral" rating and issued a $10.00 price target on shares of Grocery Outlet in a research note on Thursday, August 13th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $9.00 target price on shares of Grocery Outlet in a research note on Thursday, August 13th. Twelve investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $10.59.

Grocery Outlet Price Performance

The firm has a market capitalization of $1.15 billion, a P/E ratio of -2.99, a P/E/G ratio of 8.54 and a beta of 0.65. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.30 and a current ratio of 1.29. The stock has a 50 day moving average of $10.05 and a two-hundred day moving average of $8.76.

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

Insider Transactions at Grocery Outlet

In other news, insider Paul Blaine Miller bought 10,000 shares of the company's stock in a transaction that occurred on Thursday, June 18th. The shares were purchased at an average price of $9.37 per share, for a total transaction of $93,700.00. Following the acquisition, the insider directly owned 59,171 shares of the company's stock, valued at $554,432.27. The trade was a 20.34% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In the last quarter, insiders have acquired 23,000 shares of company stock valued at $228,400. Company insiders own 5.60% of the company's stock.

Hedge Funds Weigh In On Grocery Outlet

Several large investors have recently made changes to their positions in GO. BlackRock Inc. acquired a new position in Grocery Outlet during the 2nd quarter worth $152,440,000. T. Rowe Price Investment Management Inc. grew its position in shares of Grocery Outlet by 54.0% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 15,763,945 shares of the company's stock worth $159,216,000 after buying an additional 5,528,722 shares during the period. Millennium Management LLC increased its stake in Grocery Outlet by 3,558.0% in the third quarter. Millennium Management LLC now owns 1,825,407 shares of the company's stock valued at $29,298,000 after purchasing an additional 1,775,505 shares in the last quarter. UBS Group AG increased its position in shares of Grocery Outlet by 87.6% in the 4th quarter. UBS Group AG now owns 2,726,299 shares of the company's stock valued at $27,536,000 after buying an additional 1,272,859 shares in the last quarter. Finally, Solas Capital Management LLC bought a new stake in shares of Grocery Outlet in the second quarter worth about $11,368,000. Institutional investors and hedge funds own 99.87% of the company's stock.

About Grocery Outlet

Grocery Outlet Holding Corp. NASDAQ: GO is a specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. Headquartered in Emeryville, California, the company operates two primary banners—Grocery Outlet and Fresh2Go—with a combined footprint of more than 400 stores. Its product assortment spans fresh produce, meat, dairy, bakery items, household staples, natural and organic offerings, and select specialty products, all sold at significant markdowns compared to conventional supermarkets.

The company's unique buying model enables it to source inventory through opportunistic purchases of surplus freight, discontinued items, and closeout deals, which it then passes on as savings to its customers.

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