Groupon Inc. (GRPN) Upgraded to “Strong-Buy” 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 currently has a $5.75 target price on the coupon company’s stock. Zacks Investment Research’s price objective indicates a potential upside of 13.41% from the company’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.”
GRPN has been the subject of a number of other research reports. Vetr upgraded Groupon from a “sell” rating to a “buy” rating and set a $4.20 price target for the company in a research note on Monday, July 18th. Boenning Scattergood began coverage on Groupon in a research note on Thursday, September 29th. They set a “neutral” rating for the company. Jefferies Group reiterated a “hold” rating on shares of Groupon in a research note on Monday, July 11th. B. Riley reiterated a “neutral” rating and set a $4.50 price target on shares of Groupon in a research note on Tuesday, August 2nd. Finally, Goldman Sachs Group Inc. lifted their price target on Groupon from $4.10 to $4.40 and gave the company a “neutral” rating in a research note on Thursday, July 28th. Three research analysts have rated the stock with a sell rating, ten have given a hold rating, nine have given a buy rating and two have given a strong buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average price target of $6.70.
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Shares of Groupon (NASDAQ:GRPN) traded down 0.99% during mid-day trading on Wednesday, reaching $5.02. The company had a trading volume of 830,476 shares. Groupon has a 12-month low of $2.15 and a 12-month high of $5.94. The stock’s market capitalization is $2.88 billion. The firm’s 50 day moving average is $5.21 and its 200-day moving average is $4.36.
Groupon (NASDAQ:GRPN) last released its quarterly earnings results on Wednesday, July 27th. The coupon company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.02) by $0.01. The business earned $756.03 million during the quarter, compared to the consensus estimate of $710.94 million. Groupon had a negative return on equity of 14.95% and a negative net margin of 5.71%. The company’s quarterly revenue was up 2.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.02 EPS.
In other Groupon news, insider James Sullivan sold 20,000 shares of the company’s stock in a transaction dated Wednesday, August 10th. The shares were sold at an average price of $5.81, for a total transaction of $116,200.00. Following the completion of the sale, the insider now directly owns 299,778 shares in the company, valued at $1,741,710.18. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, General Counsel Dane A. Drobny sold 30,798 shares of the company’s stock in a transaction dated Wednesday, September 7th. The shares were sold at an average price of $5.48, for a total transaction of $168,773.04. Following the sale, the general counsel now owns 320,132 shares of the company’s stock, valued at $1,754,323.36. The disclosure for this sale can be found here. 23.86% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently bought and sold shares of the stock. Concourse Capital Management LLC acquired a new stake in Groupon during the second quarter valued at about $104,000. M&T Bank Corp acquired a new stake in Groupon during the first quarter valued at about $107,000. Jasper Ridge Partners L.P. acquired a new stake in Groupon during the second quarter valued at about $108,000. Royal Bank of Canada raised its stake in Groupon by 80.0% in the second quarter. Royal Bank of Canada now owns 33,375 shares of the coupon company’s stock valued at $109,000 after buying an additional 14,829 shares during the last quarter. Finally, Invictus RG raised its stake in Groupon by 79.9% in the first quarter. Invictus RG now owns 30,777 shares of the coupon company’s stock valued at $123,000 after buying an additional 13,670 shares during the last quarter. Institutional investors and hedge funds own 54.60% of the company’s stock.
Groupon Company Profile
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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