Grocery Outlet Holding Corp. (NASDAQ:GO) Given Consensus Rating of “Reduce” by Analysts

Shares of Grocery Outlet Holding Corp. (NASDAQ:GO) have received a consensus rating of “Reduce” from the thirteen analysts that are presently covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a sell recommendation and eleven have issued a hold recommendation on the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $10.3182.

Several research analysts recently commented on the stock. Weiss Ratings downgraded shares of Grocery Outlet from a “sell (d)” rating to a “sell (d-)” rating in a research note on Friday, May 15th. Craig Hallum downgraded shares of Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research note on Thursday, March 5th. The Goldman Sachs Group decreased their target price on shares of Grocery Outlet from $12.00 to $9.00 and set a “sell” rating on the stock in a research note on Thursday, February 19th. Jefferies Financial Group reaffirmed a “hold” rating and issued a $7.00 target price (down from $18.00) on shares of Grocery Outlet in a research note on Thursday, March 5th. Finally, TD Cowen lifted their target price on shares of Grocery Outlet from $6.00 to $8.00 and gave the stock a “hold” rating in a research note on Thursday, May 14th.

Grocery Outlet Stock Up 0.1%

Shares of NASDAQ GO opened at $8.02 on Friday. The company has a quick ratio of 0.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.59. Grocery Outlet has a 52 week low of $5.66 and a 52 week high of $19.41. The firm’s fifty day moving average is $7.27 and its 200 day moving average is $9.15. The company has a market cap of $793.34 million, a price-to-earnings ratio of -2.07, a PEG ratio of 12.59 and a beta of 0.66.

Grocery Outlet (NASDAQ:GO) last issued its earnings results on Wednesday, May 13th. The company reported $0.05 EPS for the quarter, topping the consensus estimate of $0.02 by $0.03. Grocery Outlet had a negative net margin of 8.08% and a positive return on equity of 5.69%. The company had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.15 billion. During the same period in the previous year, the firm earned $0.13 earnings per share. The firm’s revenue for the quarter was up 3.6% on a year-over-year basis. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. On average, equities research analysts expect that Grocery Outlet will post 0.37 earnings per share for the current year.

Insider Activity

In other news, Director Erik D. Ragatz bought 125,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 11th. The shares were bought at an average cost of $6.00 per share, with a total value of $750,000.00. Following the completion of the purchase, the director directly owned 326,500 shares in the company, valued at $1,959,000. This represents a 62.03% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, Director Carey F. Jaros acquired 40,000 shares of Grocery Outlet stock in a transaction on Tuesday, March 10th. The shares were bought at an average cost of $6.26 per share, for a total transaction of $250,400.00. Following the completion of the transaction, the director owned 76,066 shares in the company, valued at approximately $476,173.16. This trade represents a 110.91% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders purchased 899,905 shares of company stock valued at $5,396,307 and sold 89,493 shares valued at $524,431. 4.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. T. Rowe Price Investment Management Inc. increased its position in Grocery Outlet by 54.0% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 15,763,945 shares of the company’s stock valued at $159,216,000 after purchasing an additional 5,528,722 shares during the period. Vanguard Group Inc. increased its position in Grocery Outlet by 1.9% during the 4th quarter. Vanguard Group Inc. now owns 11,255,936 shares of the company’s stock valued at $113,685,000 after purchasing an additional 213,325 shares during the period. Mackenzie Financial Corp increased its position in Grocery Outlet by 0.5% during the 4th quarter. Mackenzie Financial Corp now owns 4,709,721 shares of the company’s stock valued at $47,757,000 after purchasing an additional 22,418 shares during the period. Dimensional Fund Advisors LP increased its position in Grocery Outlet by 5.0% during the 3rd quarter. Dimensional Fund Advisors LP now owns 4,619,851 shares of the company’s stock valued at $74,149,000 after purchasing an additional 221,693 shares during the period. Finally, Marshall Wace LLP increased its position in Grocery Outlet by 0.5% during the 3rd quarter. Marshall Wace LLP now owns 4,577,371 shares of the company’s stock valued at $73,467,000 after purchasing an additional 20,819 shares during the period. 99.87% of the stock is owned by hedge funds and other institutional investors.

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.