Roth Capital Forecasts Reduced Earnings for Grocery Outlet

Key Points

• Roth Capital has lowered its Q3 2025 earnings per share estimate for Grocery Outlet from $0.24 to $0.18, while the current consensus for the full year's earnings stands at $0.63 per share.
• Multiple brokerages have recently adjusted their ratings and price targets, with Jefferies upgrading Grocery Outlet from a "hold" to a "buy" rating and increasing the price target from $13.00 to $18.00.
• Institutional investors own the majority of Grocery Outlet's stock, with 99.87% of shares held by institutions and hedge funds, indicating strong institutional interest in the company.

Grocery Outlet Holding Corp. (NASDAQ:GO - Free Report) - Equities research analysts at Roth Capital cut their Q3 2025 earnings per share (EPS) estimates for Grocery Outlet in a research report issued to clients and investors on Wednesday, August 6th. Roth Capital analyst W. Kirk now forecasts that the company will earn $0.18 per share for the quarter, down from their prior estimate of $0.24. The consensus estimate for Grocery Outlet's current full-year earnings is $0.63 per share.

A number of other analysts have also weighed in on the company. Jefferies Financial Group raised Grocery Outlet from a "hold" rating to a "buy" rating and increased their price objective for the company from $13.00 to $18.00 in a research note on Wednesday, April 16th. Morgan Stanley raised Grocery Outlet from an "underweight" rating to an "equal weight" rating and increased their price objective for the company from $13.00 to $16.00 in a research note on Wednesday. Craig Hallum raised Grocery Outlet from a "hold" rating to a "buy" rating and set a $17.00 price target for the company in a research note on Wednesday. UBS Group raised their price target on Grocery Outlet from $14.50 to $17.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 7th. Finally, Wells Fargo & Company raised their price target on Grocery Outlet from $18.00 to $19.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 7th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $16.08.

Grocery Outlet Trading Up 0.6%

Shares of NASDAQ:GO traded up $0.11 during trading on Friday, reaching $18.54. 5,619,094 shares of the company traded hands, compared to its average volume of 3,697,051. The firm has a market capitalization of $1.82 billion, a price-to-earnings ratio of 264.89, a P/E/G ratio of 4.25 and a beta of 0.27. Grocery Outlet has a 52-week low of $10.26 and a 52-week high of $21.67. The company has a current ratio of 1.21, a quick ratio of 0.25 and a debt-to-equity ratio of 0.38. The business's fifty day moving average is $13.67 and its 200-day moving average is $14.23.

Grocery Outlet (NASDAQ:GO - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.23 earnings per share for the quarter, beating analysts' consensus estimates of $0.17 by $0.06. The firm had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.20 billion. Grocery Outlet had a return on equity of 6.34% and a net margin of 0.18%. The business's quarterly revenue was up 4.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.25 earnings per share.

Hedge Funds Weigh In On Grocery Outlet

Several institutional investors and hedge funds have recently added to or reduced their stakes in GO. Simcoe Capital Management LLC bought a new position in shares of Grocery Outlet during the fourth quarter valued at $53,185,000. Wellington Management Group LLP bought a new position in shares of Grocery Outlet during the first quarter valued at $43,509,000. T. Rowe Price Investment Management Inc. increased its holdings in shares of Grocery Outlet by 1,577.2% during the first quarter. T. Rowe Price Investment Management Inc. now owns 3,262,956 shares of the company's stock valued at $45,617,000 after acquiring an additional 3,068,405 shares in the last quarter. Junto Capital Management LP bought a new position in shares of Grocery Outlet during the fourth quarter valued at $39,128,000. Finally, Solas Capital Management LLC bought a new position in shares of Grocery Outlet during the first quarter valued at $13,736,000. Hedge funds and other institutional investors own 99.87% of the company's stock.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products.