Grocery Outlet (NASDAQ:GO) Issues Quarterly Earnings Results

Grocery Outlet (NASDAQ:GO) announced its earnings results on Wednesday. The company reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.02), FiscalAI reports. The firm had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.23 billion. Grocery Outlet had a negative net margin of 0.10% and a positive return on equity of 5.86%.

Grocery Outlet Stock Performance

Shares of NASDAQ:GO traded down $0.08 during trading on Wednesday, reaching $8.79. 5,355,656 shares of the stock were exchanged, compared to its average volume of 2,400,754. Grocery Outlet has a 12 month low of $8.73 and a 12 month high of $19.41. The stock has a 50-day moving average price of $9.82 and a 200-day moving average price of $12.77. The company has a current ratio of 1.30, a quick ratio of 0.25 and a debt-to-equity ratio of 0.40. The firm has a market cap of $862.65 million, a PE ratio of -175.80, a PEG ratio of 1.88 and a beta of 0.50.

Wall Street Analysts Forecast Growth

GO has been the topic of a number of research reports. UBS Group reiterated a “neutral” rating and issued a $11.50 target price on shares of Grocery Outlet in a report on Thursday, December 18th. Zacks Research downgraded shares of Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 14th. The Goldman Sachs Group decreased their target price on shares of Grocery Outlet from $12.00 to $9.00 and set a “sell” rating for the company in a research note on Thursday, February 19th. Wells Fargo & Company downgraded shares of Grocery Outlet from an “overweight” rating to an “equal weight” rating and dropped their price target for the stock from $16.00 to $10.50 in a research note on Wednesday, February 25th. Finally, Bank of America lowered their target price on Grocery Outlet from $19.00 to $16.00 and set a “neutral” rating on the stock in a research note on Wednesday, November 5th. Three research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Grocery Outlet presently has a consensus rating of “Hold” and an average target price of $13.64.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GO. T. Rowe Price Investment Management Inc. boosted its position in shares of Grocery Outlet by 54.0% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 15,763,945 shares of the company’s stock valued at $159,216,000 after acquiring an additional 5,528,722 shares during the period. Mackenzie Financial Corp boosted its holdings in Grocery Outlet by 0.5% in the 4th quarter. Mackenzie Financial Corp now owns 4,709,721 shares of the company’s stock valued at $47,757,000 after purchasing an additional 22,418 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Grocery Outlet by 5.0% during the 3rd quarter. Dimensional Fund Advisors LP now owns 4,619,851 shares of the company’s stock worth $74,149,000 after purchasing an additional 221,693 shares in the last quarter. Marshall Wace LLP increased its holdings in shares of Grocery Outlet by 0.5% during the third quarter. Marshall Wace LLP now owns 4,577,371 shares of the company’s stock worth $73,467,000 after purchasing an additional 20,819 shares during the period. Finally, State Street Corp raised its position in shares of Grocery Outlet by 11.8% in the fourth quarter. State Street Corp now owns 4,375,319 shares of the company’s stock valued at $44,191,000 after buying an additional 462,212 shares in the last quarter. 99.87% of the stock is owned by institutional investors and hedge funds.

About Grocery Outlet

Grocery Outlet Holding Corp. (NASDAQ: GO) is a specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. Headquartered in Emeryville, California, the company operates two primary banners—Grocery Outlet and Fresh2Go—with a combined footprint of more than 400 stores. Its product assortment spans fresh produce, meat, dairy, bakery items, household staples, natural and organic offerings, and select specialty products, all sold at significant markdowns compared to conventional supermarkets.

The company’s unique buying model enables it to source inventory through opportunistic purchases of surplus freight, discontinued items, and closeout deals, which it then passes on as savings to its customers.