Groupon (GRPN) Cut to Sell at Zacks Investment Research

Groupon (NASDAQ:GRPN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.

According to Zacks, “Groupon operates a website that offers daily discount deals. Due to company’s operating model it has to continue spending on generating awareness about its offerings which ensures recurring expenditure weighing down profitability. Moreover, revenue growth has slowed down in the last couple of years. Reduced international footprint will continue to hurt top-line growth at least in the near term. Moreover, intensifying competition is a significant headwind. Shares of the company have also underperformed the industry over the past three months. However, the company’s partnership with Grubhub and ongoing brand awareness programs are anticipated to boost revenues. Moreover, the company’s policy of launching new products on a regular basis is a positive.”

A number of other brokerages have also commented on GRPN. Vetr lowered shares of Groupon from a “buy” rating to a “hold” rating and set a $6.09 price objective on the stock. in a report on Monday, December 11th. Piper Jaffray Companies reiterated an “overweight” rating and set a $6.25 price target on shares of Groupon in a report on Tuesday, December 12th. DA Davidson reissued a “buy” rating on shares of Groupon in a report on Thursday, November 30th. TheStreet raised shares of Groupon from a “d” rating to a “c-” rating in a report on Thursday, November 2nd. Finally, BidaskClub lowered shares of Groupon from a “buy” rating to a “hold” rating in a report on Friday, December 15th. Six analysts have rated the stock with a sell rating, nine have issued a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company. The company currently has an average rating of “Hold” and a consensus target price of $5.06.

Shares of Groupon (GRPN) traded down $0.03 during trading hours on Monday, reaching $5.02. 19,159,400 shares of the company’s stock were exchanged, compared to its average volume of 8,878,577. Groupon has a 12-month low of $2.90 and a 12-month high of $5.99. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.99. The company has a market cap of $2,803.18, a price-to-earnings ratio of -33.46, a P/E/G ratio of 26.42 and a beta of 1.47.

In related news, CAO Brian Stevens sold 20,000 shares of the stock in a transaction that occurred on Friday, November 24th. The shares were sold at an average price of $5.71, for a total value of $114,200.00. Following the sale, the chief accounting officer now directly owns 222,354 shares in the company, valued at approximately $1,269,641.34. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Eric P. Lefkofsky sold 1,500,000 shares of the firm’s stock in a transaction that occurred on Thursday, December 7th. The stock was sold at an average price of $5.77, for a total transaction of $8,655,000.00. The disclosure for this sale can be found here. Insiders sold a total of 1,545,000 shares of company stock worth $8,901,450 over the last quarter. 23.40% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently made changes to their positions in GRPN. Pictet Asset Management Ltd. acquired a new stake in Groupon during the 3rd quarter worth approximately $37,704,000. SG Capital Management LLC acquired a new stake in Groupon during the 3rd quarter worth approximately $16,741,000. State Street Corp raised its holdings in Groupon by 38.2% during the 2nd quarter. State Street Corp now owns 8,827,043 shares of the coupon company’s stock worth $33,898,000 after buying an additional 2,440,783 shares during the period. Vanguard Group Inc. raised its holdings in Groupon by 8.1% during the 2nd quarter. Vanguard Group Inc. now owns 32,453,440 shares of the coupon company’s stock worth $124,620,000 after buying an additional 2,430,907 shares during the period. Finally, Sumitomo Mitsui Asset Management Company LTD raised its holdings in Groupon by 40.2% during the 3rd quarter. Sumitomo Mitsui Asset Management Company LTD now owns 8,451,180 shares of the coupon company’s stock worth $43,946,000 after buying an additional 2,421,825 shares during the period. Hedge funds and other institutional investors own 59.81% of the company’s stock.

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About Groupon

Groupon, Inc operates online local commerce marketplaces around the world that connect merchants to consumers by offering goods and services at a discount. The Company operates through three segments: North America, which represents the United States and Canada; EMEA, which consists of Europe, and the Middle East and Africa, and the remainder of its international operations (Rest of World).

Analyst Recommendations for Groupon (NASDAQ:GRPN)

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