Groupon (NASDAQ:GRPN) Shares Gap Down - What's Next?

Key Points

• Groupon shares fell 3.3%, opening at $17.89 versus the prior close of $18.84 and last trading near $18.02. The stock remains below its 50-day moving average of $20.96.
• Analyst views remain mixed, with a consensus rating of “Reduce” and an average price target of $23.00; individual targets range from $16.00 to $30.00.
• Groupon reported a quarterly loss of $0.04 per share, better than the expected $0.06 loss, while revenue of $124.67 million came in below the $127.09 million estimate. Institutional investors own approximately 90.05% of the company.

Groupon, Inc. (NASDAQ:GRPN - Get Free Report) gapped down prior to trading on Wednesday. The stock had previously closed at $18.84, but opened at $17.89. Groupon shares last traded at $18.02, with a volume of 269,673 shares.

Analysts Set New Price Targets

Several research firms have issued reports on GRPN. Wall Street Zen upgraded Groupon from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Groupon in a report on Friday, September 4th. Citigroup reissued an "outperform" rating on shares of Groupon in a research report on Tuesday, June 9th. The Goldman Sachs Group set a $16.00 price objective on shares of Groupon in a report on Wednesday. Finally, Northland Securities set a $30.00 target price on shares of Groupon in a research note on Monday, August 17th. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus price target of $23.00.

Groupon Stock Down 3.3%

The company has a 50 day moving average of $20.96 and a two-hundred day moving average of $19.13. The firm has a market cap of $740.55 million, a P/E ratio of -5.85 and a beta of 0.20.

Groupon (NASDAQ:GRPN - Get Free Report) last issued its earnings results on Thursday, August 6th. The coupon company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.06) by $0.02. The company had revenue of $124.67 million during the quarter, compared to analyst estimates of $127.09 million. Research analysts expect that Groupon, Inc. will post -0.14 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Groupon

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Versant Capital Management Inc increased its position in shares of Groupon by 92.7% in the second quarter. Versant Capital Management Inc now owns 1,299 shares of the coupon company's stock valued at $31,000 after buying an additional 625 shares in the last quarter. Royal Bank of Canada raised its position in shares of Groupon by 10.6% in the first quarter. Royal Bank of Canada now owns 7,618 shares of the coupon company's stock valued at $90,000 after buying an additional 731 shares during the last quarter. Headlands Technologies LLC lifted its stake in Groupon by 10.1% in the 2nd quarter. Headlands Technologies LLC now owns 15,054 shares of the coupon company's stock worth $362,000 after purchasing an additional 1,382 shares in the last quarter. Hennion & Walsh Asset Management Inc. lifted its position in Groupon by 13.4% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 13,129 shares of the coupon company's stock worth $316,000 after buying an additional 1,553 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd boosted its position in shares of Groupon by 135.9% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,185 shares of the coupon company's stock valued at $56,000 after acquiring an additional 1,835 shares during the last quarter. Institutional investors own 90.05% of the company's stock.

Groupon Company Profile

Groupon, Inc operates a global e-commerce marketplace that connects consumers with local businesses and merchants. Through its website and mobile applications, the company offers discounts and promotions on experiences, dining, beauty and wellness, entertainment, travel, and other products and services.

Groupon's platform enables merchants to reach new customers, promote their offerings, and manage digital marketing campaigns. Consumers can search for deals by location, category, and activity, while participating businesses use Groupon's marketplace and promotional tools to support customer acquisition.

Founded in 2008, Groupon initially became known for its “daily deals” model and subsequently expanded into a broader local commerce marketplace.

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