Grocery Outlet Holding Corp. (NASDAQ:GO) Given Consensus Recommendation of “Reduce” by Brokerages

Shares of Grocery Outlet Holding Corp. (NASDAQ:GO) have received an average rating of “Reduce” from the thirteen ratings firms that are covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating and eleven have issued a hold rating on the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $10.3182.

A number of brokerages have weighed in on GO. Morgan Stanley decreased their target price on Grocery Outlet from $11.00 to $7.00 and set an “equal weight” rating on the stock in a research note on Thursday, March 5th. DA Davidson upped their target price on Grocery Outlet from $7.00 to $9.00 and gave the stock a “neutral” rating in a research note on Thursday, May 14th. Craig Hallum lowered Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research report on Thursday, March 5th. TD Cowen increased their price objective on Grocery Outlet from $6.00 to $8.00 and gave the company a “hold” rating in a research report on Thursday, May 14th. Finally, Wells Fargo & Company increased their price objective on Grocery Outlet from $7.00 to $9.00 and gave the company an “equal weight” rating in a research report on Thursday, May 14th.

Insider Activity at Grocery Outlet

In other news, insider Paul Blaine Miller acquired 10,000 shares of Grocery Outlet stock in a transaction dated Thursday, June 18th. The shares were purchased at an average cost of $9.37 per share, for a total transaction of $93,700.00. Following the transaction, the insider owned 59,171 shares of the company’s stock, valued at $554,432.27. This trade represents a 20.34% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Company insiders own 4.50% of the company’s stock.

Hedge Funds Weigh In On Grocery Outlet

Several institutional investors have recently modified their holdings of the company. Heartland Advisors Inc. bought a new position in Grocery Outlet during the 3rd quarter worth approximately $4,448,000. Boothbay Fund Management LLC grew its position in Grocery Outlet by 562.1% during the 3rd quarter. Boothbay Fund Management LLC now owns 284,979 shares of the company’s stock worth $4,574,000 after acquiring an additional 241,936 shares during the last quarter. UBS Group AG grew its position in Grocery Outlet by 87.6% during the 4th quarter. UBS Group AG now owns 2,726,299 shares of the company’s stock worth $27,536,000 after acquiring an additional 1,272,859 shares during the last quarter. Vanguard Group Inc. grew its position in Grocery Outlet by 1.9% during the 4th quarter. Vanguard Group Inc. now owns 11,255,936 shares of the company’s stock worth $113,685,000 after acquiring an additional 213,325 shares during the last quarter. Finally, Dana Investment Advisors Inc. bought a new position in Grocery Outlet during the 3rd quarter worth approximately $5,925,000. 99.87% of the stock is currently owned by institutional investors.

Grocery Outlet Price Performance

Shares of NASDAQ GO opened at $9.47 on Wednesday. The firm has a market capitalization of $936.80 million, a P/E ratio of -2.44, a P/E/G ratio of 14.48 and a beta of 0.67. The company has a quick ratio of 0.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.59. The stock’s 50-day simple moving average is $8.26 and its two-hundred day simple moving average is $8.73. Grocery Outlet has a twelve month low of $5.66 and a twelve month high of $19.41.

Grocery Outlet (NASDAQ:GO) last announced its earnings results on Wednesday, May 13th. The company reported $0.05 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.03. The business had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.15 billion. Grocery Outlet had a positive return on equity of 5.69% and a negative net margin of 8.08%.The company’s quarterly revenue was up 3.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.13 EPS. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. As a group, equities analysts anticipate that Grocery Outlet will post 0.38 EPS for the current fiscal year.

Grocery Outlet Company Profile

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.