Grocery Outlet (NASDAQ:GO) Shares Gap Down Following Analyst Downgrade

Grocery Outlet Holding Corp. (NASDAQ:GO)’s stock price gapped down prior to trading on Wednesday after Wells Fargo & Company downgraded the stock from an overweight rating to an equal weight rating. The stock had previously closed at $10.09, but opened at $9.62. Wells Fargo & Company now has a $10.50 price target on the stock, down from their previous price target of $16.00. Grocery Outlet shares last traded at $9.94, with a volume of 277,490 shares trading hands.

GO has been the subject of several other research reports. Morgan Stanley cut their price target on Grocery Outlet from $14.00 to $11.00 and set an “equal weight” rating for the company in a research note on Thursday, January 15th. The Goldman Sachs Group dropped their price objective on shares of Grocery Outlet from $12.00 to $9.00 and set a “sell” rating on the stock in a report on Thursday, February 19th. Telsey Advisory Group reduced their target price on shares of Grocery Outlet from $17.00 to $15.00 and set an “outperform” rating for the company in a research note on Tuesday, February 17th. Zacks Research cut shares of Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 14th. Finally, TD Cowen cut their price objective on shares of Grocery Outlet from $18.00 to $16.00 and set a “hold” rating for the company in a report on Wednesday, November 5th. Three research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $13.64.

Institutional Trading of Grocery Outlet

Several institutional investors and hedge funds have recently bought and sold shares of GO. Bayforest Capital Ltd purchased a new position in shares of Grocery Outlet during the 3rd quarter valued at $29,000. Hantz Financial Services Inc. boosted its stake in Grocery Outlet by 591.5% during the third quarter. Hantz Financial Services Inc. now owns 2,033 shares of the company’s stock valued at $33,000 after buying an additional 1,739 shares during the period. Aster Capital Management DIFC Ltd grew its position in Grocery Outlet by 1,030.4% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company’s stock worth $26,000 after buying an additional 2,308 shares in the last quarter. PNC Financial Services Group Inc. increased its stake in Grocery Outlet by 32.3% in the 2nd quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company’s stock worth $37,000 after acquiring an additional 719 shares during the last quarter. Finally, Kestra Advisory Services LLC bought a new position in Grocery Outlet in the 4th quarter worth about $35,000. 99.87% of the stock is currently owned by hedge funds and other institutional investors.

Grocery Outlet Price Performance

The company has a debt-to-equity ratio of 0.40, a current ratio of 1.30 and a quick ratio of 0.25. The firm has a market capitalization of $973.42 million, a PE ratio of -198.24, a P/E/G ratio of 2.03 and a beta of 0.49. The business’s 50 day moving average is $9.87 and its two-hundred day moving average is $13.08.

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.