Telsey Advisory Group Reiterates Market Perform Rating for Grocery Outlet (NASDAQ:GO)

Key Points

• Telsey Advisory Group has reiterated a "market perform" rating for Grocery Outlet with a target price of $16.00, indicating a potential decrease of 6.3% from the current stock price.
• Other brokerages, including Craig Hallum and Jefferies Financial Group, have upgraded their ratings for Grocery Outlet, with price targets now ranging between $17.00 and $19.00.
• Insider activity showed that Director Erik D. Ragatz purchased 19,000 shares at an average price of $14.46, significantly increasing their stake in the company.

Grocery Outlet (NASDAQ:GO - Get Free Report)'s stock had its "market perform" rating reiterated by equities research analysts at Telsey Advisory Group in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $16.00 target price on the stock. Telsey Advisory Group's price objective points to a potential downside of 6.30% from the company's current price.

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

Grocery Outlet Stock Performance

Shares of GO stock opened at $17.08 on Wednesday. The company has a quick ratio of 0.25, a current ratio of 1.25 and a debt-to-equity ratio of 0.39. The business has a 50 day moving average of $13.38 and a two-hundred day moving average of $14.17. Grocery Outlet has a 52 week low of $10.26 and a 52 week high of $21.67. The company has a market cap of $1.67 billion, a P/E ratio of 106.78, a PEG ratio of 4.31 and a beta of 0.27.

Grocery Outlet (NASDAQ:GO - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.06. The business had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.20 billion. Grocery Outlet had a return on equity of 6.21% and a net margin of 0.39%. The business's revenue was up 4.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.25 earnings per share. As a group, analysts anticipate that Grocery Outlet will post 0.63 EPS for the current year.

Insiders Place Their Bets

In other Grocery Outlet news, Director Erik D. Ragatz purchased 19,000 shares of the company's stock in a transaction that occurred on Friday, May 9th. The shares were bought at an average cost of $14.46 per share, for a total transaction of $274,740.00. Following the purchase, the director owned 19,000 shares of the company's stock, valued at $274,740. This represents a ∞ increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 4.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Grocery Outlet

A number of institutional investors have recently made changes to their positions in GO. Vanguard Group Inc. grew its stake in shares of Grocery Outlet by 5.8% during the first quarter. Vanguard Group Inc. now owns 10,717,454 shares of the company's stock valued at $149,830,000 after buying an additional 582,822 shares during the last quarter. FPR Partners LLC raised its stake in Grocery Outlet by 15.2% in the fourth quarter. FPR Partners LLC now owns 5,991,474 shares of the company's stock worth $93,527,000 after buying an additional 791,474 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in Grocery Outlet by 0.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,833,955 shares of the company's stock worth $59,845,000 after buying an additional 35,938 shares in the last quarter. Simcoe Capital Management LLC bought a new position in Grocery Outlet in the fourth quarter worth about $53,185,000. Finally, T. Rowe Price Investment Management Inc. raised its stake in Grocery Outlet by 1,577.2% in the first quarter. T. Rowe Price Investment Management Inc. now owns 3,262,956 shares of the company's stock worth $45,617,000 after buying an additional 3,068,405 shares in the last quarter. 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.

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