Grocery Outlet Holding Corp. (NASDAQ:GO) Receives Average Rating of “Hold” from Analysts

Shares of Grocery Outlet Holding Corp. (NASDAQ:GO) have received an average recommendation of “Hold” from the thirteen brokerages that are currently covering the company, MarketBeat reports. Two analysts have rated the stock with a sell recommendation, seven have assigned a hold recommendation and four have given a buy recommendation to the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $14.8636.

A number of equities analysts have weighed in on the company. Zacks Research lowered Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 14th. Wells Fargo & Company reduced their price target on Grocery Outlet from $19.00 to $16.00 and set an “overweight” rating on the stock in a report on Friday. Morgan Stanley dropped their price objective on shares of Grocery Outlet from $15.00 to $14.00 and set an “equal weight” rating for the company in a report on Thursday, December 4th. DA Davidson restated a “neutral” rating and set a $15.00 price objective on shares of Grocery Outlet in a research report on Thursday, December 4th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Grocery Outlet in a report on Wednesday, October 8th.

Grocery Outlet Stock Performance

GO opened at $10.20 on Wednesday. Grocery Outlet has a twelve month low of $9.74 and a twelve month high of $19.41. The firm has a market capitalization of $1.00 billion, a PE ratio of -204.00, a PEG ratio of 1.60 and a beta of 0.47. The company has a current ratio of 1.30, a quick ratio of 0.25 and a debt-to-equity ratio of 0.40. The firm’s 50-day moving average price is $12.14 and its 200 day moving average price is $14.28.

Grocery Outlet (NASDAQ:GO) last released its earnings results on Tuesday, November 4th. The company reported $0.21 earnings per share for the quarter, topping analysts’ consensus estimates of $0.19 by $0.02. The business had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.18 billion. Grocery Outlet had a negative net margin of 0.10% and a positive return on equity of 5.86%. The business’s revenue was up 5.4% on a year-over-year basis. During the same period last year, the company posted $0.28 EPS. Grocery Outlet has set its FY 2025 guidance at 0.780-0.80 EPS. As a group, sell-side analysts expect that Grocery Outlet will post 0.63 EPS for the current fiscal year.

Insider Buying and Selling

In related news, EVP Steven K. Wilson sold 25,000 shares of the stock in a transaction that occurred on Friday, November 7th. The stock was sold at an average price of $12.53, for a total value of $313,250.00. Following the completion of the transaction, the executive vice president directly owned 116,923 shares in the company, valued at approximately $1,465,045.19. This represents a 17.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 4.50% of the company’s stock.

Hedge Funds Weigh In On Grocery Outlet

Large investors have recently modified their holdings of the business. PNC Financial Services Group Inc. boosted its position 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 valued at $37,000 after buying an additional 719 shares during the period. Thrivent Financial for Lutherans raised its stake in shares of Grocery Outlet by 1.0% in the second quarter. Thrivent Financial for Lutherans now owns 72,087 shares of the company’s stock valued at $895,000 after acquiring an additional 739 shares in the last quarter. Bank of Montreal Can boosted its holdings in Grocery Outlet by 5.1% in the second quarter. Bank of Montreal Can now owns 16,525 shares of the company’s stock valued at $205,000 after purchasing an additional 803 shares during the period. Amalgamated Bank grew its stake in Grocery Outlet by 3.5% during the 3rd quarter. Amalgamated Bank now owns 28,875 shares of the company’s stock worth $463,000 after purchasing an additional 967 shares in the last quarter. Finally, Parallel Advisors LLC increased its holdings in Grocery Outlet by 213.5% during the 2nd quarter. Parallel Advisors LLC now owns 2,025 shares of the company’s stock worth $25,000 after purchasing an additional 1,379 shares during the period. Institutional investors and hedge funds own 99.87% of the company’s stock.

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.