Groupon (NASDAQ:GRPN) Stock Falls 11.9% - Time to Sell?

Key Points

• Groupon shares fell 11.9% to about $16.23, with trading volume roughly 48% below its average. The stock traded below both its 50-day and 200-day moving averages, which were approximately $19.74 and $19.50, respectively.
• Analyst sentiment remains cautious: Groupon has a consensus rating of “Reduce” from four analysts, with two Sell, one Hold, and one Buy rating. Price targets range from $16 to $30, with a consensus target of $23.
• The company recently reported a quarterly loss of $0.04 per share, beating estimates, but revenue of $124.67 million missed expectations. Institutional investors own approximately 90.05% of Groupon’s stock and several increased their holdings during the first quarter.

Groupon, Inc. (NASDAQ:GRPN - Get Free Report)'s stock price dropped 11.9% on Friday. The stock traded as low as $16.41 and last traded at $16.2310. 780,273 shares changed hands during mid-day trading, a decline of 48% from the average daily volume of 1,503,151 shares. The stock had previously closed at $18.43.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Groupon in a research report on Friday, September 4th. Northland Securities set a $30.00 price target on Groupon in a report on Monday, August 17th. The Goldman Sachs Group set a $16.00 target price on shares of Groupon in a research report on Wednesday, October 7th. Finally, Wall Street Zen upgraded shares of Groupon from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus price target of $23.00.

Groupon Stock Down 11.9%

The business's fifty day moving average is $19.74 and its 200 day moving average is $19.50. The firm has a market capitalization of $660.03 million, a price-to-earnings ratio of -5.25 and a beta of 0.20.

Groupon (NASDAQ:GRPN - Get Free Report) last released its earnings results on Thursday, August 6th. The coupon company reported ($0.04) earnings per share (EPS) for the quarter, beating 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. Equities research analysts expect that Groupon, Inc. will post -0.14 EPS for the current year.

Institutional Investors Weigh In On Groupon

Several institutional investors and hedge funds have recently made changes to their positions in GRPN. Renaissance Technologies LLC boosted its holdings in shares of Groupon by 464.1% during the 1st quarter. Renaissance Technologies LLC now owns 619,413 shares of the coupon company's stock worth $7,371,000 after buying an additional 509,600 shares in the last quarter. Bank of America Corp DE increased its holdings in Groupon by 64.2% during the first quarter. Bank of America Corp DE now owns 636,480 shares of the coupon company's stock worth $7,574,000 after buying an additional 248,928 shares during the last quarter. Pacer Advisors Inc. bought a new position in shares of Groupon during the 1st quarter worth $2,416,000. Dimensional Fund Advisors LP lifted its stake in shares of Groupon by 28.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 580,873 shares of the coupon company's stock valued at $6,910,000 after buying an additional 128,097 shares in the last quarter. Finally, SG Americas Securities LLC boosted its stake in Groupon by 37.0% in the 1st quarter. SG Americas Securities LLC now owns 270,682 shares of the coupon company's stock worth $3,221,000 after purchasing an additional 73,136 shares during the period. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.