Groupon Inc. (GRPN) Stock Rating Upgraded by Zacks Investment Research
Groupon Inc. (NASDAQ:GRPN) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Wednesday. The brokerage presently has a $5.75 target price on the coupon company’s stock. Zacks Investment Research’s price target would suggest a potential upside of 13.41% from the stock’s current price.
According to Zacks, “Groupon is undergoing business transition as it shifts focus from rapid international expansion to developing local core business. The company continues to expand its On-Demand food delivery service, which will boost customer base. In April, the company got a boost with a sizeable investment from Atairos Management (through Comcast), which is a positive. Moreover, recent campaigns like #BuyDealsGiveMeals will improve the company's brand visibility. Meanwhile, estimates have been stable lately ahead of the company's Q3 earnings release. The company has positive record of earnings surprises in recent quarters. Though it has already started to benefit from business transition, the costs of the shift continue to weigh on its financials. Additionally, it remains dependent on daily deals which is a major concern.”
A number of other analysts also recently issued reports on the company. Vetr raised Groupon from a “sell” rating to a “buy” rating and set a $4.20 price target for the company in a report on Monday, July 18th. Boenning Scattergood initiated coverage on Groupon in a report on Thursday, September 29th. They set a “neutral” rating for the company. Jefferies Group reaffirmed a “hold” rating on shares of Groupon in a report on Monday, July 11th. B. Riley reaffirmed a “neutral” rating and set a $4.50 price target on shares of Groupon in a report on Tuesday, August 2nd. Finally, Goldman Sachs Group Inc. lifted their price target on Groupon from $4.10 to $4.40 and gave the stock a “neutral” rating in a report on Thursday, July 28th. Three research analysts have rated the stock with a sell rating, ten have issued a hold rating, nine have given a buy rating and two have assigned a strong buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $6.70.
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Shares of Groupon (NASDAQ:GRPN) opened at 5.07 on Wednesday. Groupon has a 52 week low of $2.15 and a 52 week high of $5.94. The stock’s market capitalization is $2.91 billion. The company’s 50 day moving average price is $5.21 and its 200-day moving average price is $4.36.
Groupon (NASDAQ:GRPN) last released its earnings results on Wednesday, July 27th. The coupon company reported ($0.01) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.02) by $0.01. The firm earned $756.03 million during the quarter, compared to analyst estimates of $710.94 million. Groupon had a negative return on equity of 14.95% and a negative net margin of 5.71%. Groupon’s revenue was up 2.4% compared to the same quarter last year. During the same period last year, the business posted $0.02 earnings per share.
In other Groupon news, CAO Brian Stevens sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, August 22nd. The shares were sold at an average price of $5.54, for a total value of $83,100.00. Following the sale, the chief accounting officer now owns 147,521 shares in the company, valued at $817,266.34. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Dane A. Drobny sold 30,798 shares of the firm’s stock in a transaction that occurred on Wednesday, September 7th. The shares were sold at an average price of $5.48, for a total transaction of $168,773.04. Following the completion of the sale, the general counsel now owns 320,132 shares in the company, valued at approximately $1,754,323.36. The disclosure for this sale can be found here. 23.86% of the stock is currently owned by company insiders.
Several large investors have recently made changes to their positions in the stock. Nomura Holdings Inc. raised its stake in shares of Groupon by 156.1% in the second quarter. Nomura Holdings Inc. now owns 727,310 shares of the coupon company’s stock valued at $2,361,000 after buying an additional 443,291 shares during the last quarter. Royal Bank of Canada raised its position in Groupon by 80.0% in the second quarter. Royal Bank of Canada now owns 33,375 shares of the coupon company’s stock worth $109,000 after buying an additional 14,829 shares in the last quarter. Amalgamated Bank raised its position in Groupon by 9.8% in the second quarter. Amalgamated Bank now owns 58,455 shares of the coupon company’s stock worth $344,000 after buying an additional 5,219 shares in the last quarter. Legal & General Group Plc raised its position in Groupon by 3.8% in the second quarter. Legal & General Group Plc now owns 37,848 shares of the coupon company’s stock worth $123,000 after buying an additional 1,369 shares in the last quarter. Finally, Numeric Investors LLC bought a new position in Groupon during the second quarter worth approximately $415,000. Institutional investors own 54.60% of the company’s stock.
Groupon, Inc operates online local commerce marketplaces throughout the world that connect merchants to consumers by offering goods and services at a discount. The Company operates through three segments: North America, which represents the United States and Canada; EMEA, which consists of Europe, the Middle East and Africa, and international operations (Rest of World).
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