Wells Fargo & Company Lowers Grocery Outlet (NASDAQ:GO) Price Target to $7.00

Grocery Outlet (NASDAQ:GO) had its price objective dropped by Wells Fargo & Company from $10.50 to $7.00 in a report issued on Thursday,Benzinga reports. The firm presently has an “equal weight” rating on the stock. Wells Fargo & Company‘s price target suggests a potential upside of 6.54% from the stock’s previous close.

Several other analysts have also recently commented on the stock. UBS Group reiterated a “neutral” rating and set a $11.50 target price on shares of Grocery Outlet in a research report on Thursday, December 18th. TD Cowen restated a “hold” rating on shares of Grocery Outlet in a research report on Thursday. Telsey Advisory Group cut Grocery Outlet from an “outperform” rating to a “market perform” rating and decreased their price objective for the stock from $15.00 to $9.00 in a research note on Thursday. Morgan Stanley dropped their price objective on Grocery Outlet from $11.00 to $7.00 and set an “equal weight” rating for the company in a report on Thursday. Finally, The Goldman Sachs Group reduced their target price on Grocery Outlet from $12.00 to $9.00 and set a “sell” rating on the stock in a report on Thursday, February 19th. Eleven analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Grocery Outlet has a consensus rating of “Reduce” and an average price target of $10.68.

Grocery Outlet Stock Up 3.6%

Shares of NASDAQ:GO opened at $6.57 on Thursday. Grocery Outlet has a one year low of $6.20 and a one year high of $19.41. The company has a 50 day moving average of $9.64 and a 200-day moving average of $12.62. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.37 and a quick ratio of 0.25. The stock has a market cap of $644.85 million, a price-to-earnings ratio of -2.87, a P/E/G ratio of 1.29 and a beta of 0.50.

Grocery Outlet (NASDAQ:GO) last announced its quarterly earnings data on Wednesday, March 4th. The company reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.02). Grocery Outlet had a negative net margin of 4.80% and a positive return on equity of 5.93%. The business had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same quarter in the prior year, the company earned $0.15 earnings per share. The company’s quarterly revenue was up 10.7% on a year-over-year basis. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. On average, sell-side analysts forecast that Grocery Outlet will post 0.63 earnings per share for the current year.

Hedge Funds Weigh In On Grocery Outlet

Hedge funds and other institutional investors have recently made changes to their positions in the company. Royal Bank of Canada raised its stake in Grocery Outlet by 5.8% during the 1st quarter. Royal Bank of Canada now owns 122,565 shares of the company’s stock worth $1,713,000 after buying an additional 6,736 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Grocery Outlet by 14.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 357,856 shares of the company’s stock worth $5,003,000 after acquiring an additional 44,214 shares in the last quarter. AlphaQuest LLC grew its stake in Grocery Outlet by 327.7% in the second quarter. AlphaQuest LLC now owns 5,761 shares of the company’s stock valued at $72,000 after acquiring an additional 4,414 shares during the period. Bank of Montreal Can increased its holdings in shares of Grocery Outlet by 5.1% in the second quarter. Bank of Montreal Can now owns 16,525 shares of the company’s stock worth $205,000 after acquiring an additional 803 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its holdings in shares of Grocery Outlet by 7.4% in the second quarter. Bank of New York Mellon Corp now owns 642,806 shares of the company’s stock worth $7,984,000 after acquiring an additional 44,427 shares in the last quarter. 99.87% of the stock is owned by institutional investors.

More Grocery Outlet News

Here are the key news stories impacting Grocery Outlet this week:

• Positive Sentiment: Grocery Outlet retained Gordon Brothers to market retail leasehold opportunities as part of its store-portfolio optimization, which could recover value from closed or underperforming locations. Gordon Brothers Retained by Grocery Outlet
• Neutral Sentiment: Management set FY2026 EPS guidance (about $0.45–$0.55), giving a baseline for expectations but signaling a recovery path that will depend on fixing value perception and comp trends. Q4 2025 earnings call transcript
• Negative Sentiment: Q4 results missed expectations: EPS of $0.19 vs. $0.21 estimate, revenue slightly below estimates, comps weakened. Management reported a large operating loss driven by $113.8M long‑lived asset impairment, $149.0M goodwill impairment and $45.9M of restructuring charges — contributing to a FY2025 net loss (reported coverage highlights these write‑downs). Investor Alert / Impairment Details
• Negative Sentiment: Company announced plans to close 36 stores after a $224.9M FY2025 net loss — a sign management is accelerating portfolio cuts but also acknowledging execution and merchandising issues that hurt traffic and margins. Grocery Outlet To Close 36 Stores
• Negative Sentiment: Multiple brokerages cut ratings and price targets (Jefferies, Morgan Stanley, Wells Fargo, DA Davidson, Telsey, Craig Hallum), citing the downbeat quarter, weaker comps and the need to restore value perception — analyst downgrades amplify selling pressure. Analysts Slash Forecasts After Q4
• Negative Sentiment: Shareholder‑side investigations have been announced (multiple firms), alleging possible misstatements around financials and operations — legal risk and potential disclosures add uncertainty. Ademi LLP Investigation
• Negative Sentiment: Market commentary and analysis point to weakening customer perception of value, increased promotional activity and competitive pressure — all factors that suggest the recovery could be prolonged. Why Grocery Outlet Stock Crashed Today

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.