Grocery Outlet (NASDAQ:GO) Shares Gap Down – What’s Next?

Grocery Outlet Holding Corp. (NASDAQ:GO) shares gapped down before the market opened on Wednesday. The stock had previously closed at $14.02, but opened at $12.78. Grocery Outlet shares last traded at $12.6540, with a volume of 568,017 shares traded.

Key Headlines Impacting Grocery Outlet

Here are a few of the latest headlines about GO:

• Positive Sentiment: Grocery Outlet reported third-quarter revenue of $1.18 billion, above estimates, and comparable-store sales rose 0.5% as customer traffic improved. Management also raised its fiscal 2026 comparable-sales outlook. Zacks Q3 earnings article
• Neutral Sentiment: DA Davidson and TD Cowen raised their price targets to $14, while retaining neutral and hold ratings, respectively. Wells Fargo raised its target to $13 and kept an equal-weight rating—suggesting limited conviction despite the higher targets.
• Neutral Sentiment: One analysis maintained a Hold view, citing positive traffic and comps but smaller basket sizes and margin pressure. It also pointed to deli and frozen expansion, opportunistic product sourcing, and UGO integration as potential longer-term levers. Seeking Alpha analysis

Analysts Set New Price Targets

A number of research firms recently commented on GO. TD Cowen raised their price target on shares of Grocery Outlet from $12.00 to $14.00 and gave the stock a “hold” rating in a research report on Wednesday. Guggenheim reissued a “neutral” rating on shares of Grocery Outlet in a report on Wednesday. The Goldman Sachs Group boosted their price objective on shares of Grocery Outlet from $6.00 to $8.00 and gave the company a “sell” rating in a report on Thursday. Roth Capital restated a “neutral” rating and set a $10.00 target price on shares of Grocery Outlet in a research report on Thursday, August 13th. Finally, Deutsche Bank reaffirmed a “hold” rating and set a $9.00 target price on shares of Grocery Outlet in a report on Thursday, August 13th. One analyst has rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and an average target price of $11.50.

Grocery Outlet Price Performance

The company’s 50-day moving average is $12.24 and its two-hundred day moving average is $9.74. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.30 and a quick ratio of 0.30. The firm has a market cap of $1.27 billion, a P/E ratio of -3.33, a PEG ratio of 9.12 and a beta of 0.64.

Grocery Outlet (NASDAQ:GO) last released its earnings results on Tuesday, November 10th. The company reported $0.16 EPS for the quarter, meeting the consensus estimate of $0.16. Grocery Outlet had a negative net margin of 7.99% and a positive return on equity of 5.54%. The firm had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same period last year, the firm earned $0.21 EPS. The business’s quarterly revenue was up .9% compared to the same quarter last year. Sell-side analysts anticipate that Grocery Outlet Holding Corp. will post 0.42 EPS for the current fiscal year.

Insider Activity at Grocery Outlet

In other news, Director Carey F. Jaros acquired 15,000 shares of the stock in a transaction on Thursday, August 27th. The stock was acquired at an average cost of $11.70 per share, for a total transaction of $175,500.00. Following the completion of the transaction, the director directly owned 60,000 shares in the company, valued at approximately $702,000. This trade represents a 33.33% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Paul Miller bought 8,000 shares of the business’s stock in a transaction on Thursday, August 20th. The shares were acquired at an average price of $10.90 per share, with a total value of $87,200.00. Following the completion of the purchase, the insider directly owned 72,171 shares of the company’s stock, valued at approximately $786,663.90. The trade was a 12.47% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 5.60% of the company’s stock.

Institutional Trading of Grocery Outlet

Several institutional investors and hedge funds have recently modified their holdings of the business. Pinnacle Wealth Planning Services Inc. boosted its stake in Grocery Outlet by 103.3% in the third quarter. Pinnacle Wealth Planning Services Inc. now owns 2,511 shares of the company’s stock valued at $28,000 after buying an additional 1,276 shares in the last quarter. Allworth Financial LP acquired a new position in Grocery Outlet during the second quarter worth about $40,000. Quantbot Technologies LP bought a new position in shares of Grocery Outlet in the second quarter worth about $46,000. Public Employees Retirement System of Ohio bought a new position in shares of Grocery Outlet in the second quarter worth about $58,000. Finally, GAMMA Investing LLC lifted its holdings in shares of Grocery Outlet by 165.9% in the second quarter. GAMMA Investing LLC now owns 8,599 shares of the company’s stock worth $86,000 after acquiring an additional 5,365 shares during the last quarter. 99.87% of the stock is currently owned by institutional investors.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. operates Grocery Outlet Bargain Market, a discount grocery chain offering brand-name products and private-label items at value-oriented prices. Its stores carry a range of goods, including groceries, fresh produce, meat, dairy, frozen foods and household products. The company uses opportunistic buying to source products, which can result in changing assortments and limited-time deals. Founded in 1946 by Jim Read, Grocery Outlet has grown from a California-based business into a retailer serving communities across the western United States and parts of the East Coast.