Groupon (GRPN) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of Groupon (NASDAQ:GRPN) from a buy rating to a hold rating in a research note released on Tuesday morning.

According to Zacks, “Groupon operates a website that offers daily discount deals. Groupon’s proper mix of products along with accelerating consumer activities is a key catalyst. The company’s partnership with Grubhub and ParkWhiz along with ongoing brand awareness programs is anticipated to boost revenues. These deals are helping the company to enhance its product features, adding functionality to the application and enriching user experience. Rising e-commerce spending on mobile devices is another positive for Groupon. Notably, shares of Groupon have underperformed the industry in the past year. Nonetheless, the company has been trying to reduce dependence on goods deals and is shifting focus toward local services market. The transition to high margined local services market is hurting revenues. Further, intensifying competition amid increased uncertainty remain headwinds.”

Several other equities analysts also recently commented on the stock. BidaskClub raised shares of Groupon from a strong sell rating to a sell rating in a research note on Tuesday, October 2nd. TheStreet downgraded shares of Groupon from a c- rating to a d+ rating in a research note on Wednesday, September 26th. Wedbush reaffirmed a neutral rating and set a $4.00 price objective on shares of Groupon in a research note on Thursday, September 13th. Barclays reaffirmed a sell rating and set a $4.50 price objective on shares of Groupon in a research note on Sunday, August 5th. Finally, Morgan Stanley upped their price objective on shares of Groupon from $4.60 to $4.80 and gave the company an equal weight rating in a research note on Wednesday, July 11th. Two equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating, four have issued a buy rating and one has given a strong buy rating to the company’s stock. Groupon presently has a consensus rating of Hold and an average price target of $5.40.

NASDAQ GRPN opened at $3.48 on Tuesday. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.72. Groupon has a 12-month low of $3.31 and a 12-month high of $5.99. The stock has a market cap of $2.14 billion, a price-to-earnings ratio of -116.00, a price-to-earnings-growth ratio of 16.04 and a beta of 1.57.

Groupon (NASDAQ:GRPN) last issued its quarterly earnings data on Friday, August 3rd. The coupon company reported $0.02 EPS for the quarter, missing the consensus estimate of $0.03 by ($0.01). The firm had revenue of $617.40 million for the quarter, compared to the consensus estimate of $632.20 million. Groupon had a negative net margin of 1.97% and a negative return on equity of 27.12%. The business’s revenue was down 6.8% on a year-over-year basis. During the same period last year, the company posted $0.02 earnings per share. Sell-side analysts predict that Groupon will post 0.08 earnings per share for the current fiscal year.

In related news, Director Eric P. Lefkofsky sold 1,500,000 shares of the stock in a transaction dated Thursday, September 13th. The shares were sold at an average price of $3.82, for a total value of $5,730,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 16.90% of the stock is owned by corporate insiders.

Hedge funds have recently added to or reduced their stakes in the stock. Swiss National Bank raised its stake in Groupon by 7.7% in the second quarter. Swiss National Bank now owns 782,066 shares of the coupon company’s stock worth $3,363,000 after buying an additional 55,800 shares in the last quarter. Mackay Shields LLC grew its holdings in Groupon by 860.5% in the second quarter. Mackay Shields LLC now owns 1,072,900 shares of the coupon company’s stock worth $4,614,000 after purchasing an additional 961,200 shares during the period. Ivory Investment Management LLC grew its holdings in Groupon by 70.0% in the second quarter. Ivory Investment Management LLC now owns 1,978,499 shares of the coupon company’s stock worth $8,507,000 after purchasing an additional 814,821 shares during the period. Zacks Investment Management purchased a new stake in Groupon in the second quarter worth about $717,000. Finally, CWM LLC grew its holdings in Groupon by 2.3% in the second quarter. CWM LLC now owns 660,215 shares of the coupon company’s stock worth $2,839,000 after purchasing an additional 14,592 shares during the period. 66.81% of the stock is owned by institutional investors.

Groupon Company Profile

Groupon, Inc operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount in North America and internationally. The company provides deals in various categories, including events and activities, beauty and spa, health and fitness, food and drink, home and garden, and automotive; and deals on various product lines, such as electronics, sporting goods, jewelries, toys, household items, and apparel, as well as provides discounted and market rates for hotel, airfare, and package deals.

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