Groupon (NASDAQ:GRPN) Trading Down 7.6% – Here’s Why

Groupon, Inc. (NASDAQ:GRPN)’s share price fell 7.6% during trading on Friday . The stock traded as low as $21.14 and last traded at $21.1450. Approximately 716,333 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 1,612,651 shares. The stock had previously closed at $22.88.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on GRPN. Wall Street Zen downgraded Groupon from a “hold” rating to a “sell” rating in a report on Saturday, May 9th. Citigroup reiterated an “outperform” rating on shares of Groupon in a research note on Tuesday, June 9th. The Goldman Sachs Group reissued a “sell” rating and set a $13.00 price objective (up from $10.00) on shares of Groupon in a research report on Tuesday, May 12th. Northland Securities set a $26.00 price objective on shares of Groupon in a research report on Wednesday, May 27th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Groupon in a research note on Tuesday, June 9th. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $19.50.

Groupon Stock Performance

The firm has a market capitalization of $858.27 million, a P/E ratio of -8.66 and a beta of 0.25. The firm has a 50-day moving average of $17.22 and a 200-day moving average of $15.10.

Groupon (NASDAQ:GRPN) last issued its earnings results on Thursday, May 7th. The coupon company reported ($0.32) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.30). Groupon had a negative net margin of 20.78% and a negative return on equity of 717.37%. The business had revenue of $117.20 million for the quarter, compared to analysts’ expectations of $117.65 million. On average, research analysts forecast that Groupon, Inc. will post -0.16 EPS for the current fiscal year.

Institutional Investors Weigh In On Groupon

Large investors have recently bought and sold shares of the business. Quantbot Technologies LP bought a new position in Groupon during the 3rd quarter valued at about $2,263,000. Generali Investments CEE investicni spolecnost a.s. boosted its holdings in shares of Groupon by 147.7% during the 4th quarter. Generali Investments CEE investicni spolecnost a.s. now owns 528,089 shares of the coupon company’s stock valued at $9,300,000 after acquiring an additional 314,896 shares during the last quarter. SG Americas Securities LLC grew its stake in shares of Groupon by 764.9% in the fourth quarter. SG Americas Securities LLC now owns 197,546 shares of the coupon company’s stock worth $3,479,000 after acquiring an additional 174,705 shares during the period. Potomac Capital Management Inc. bought a new stake in shares of Groupon in the fourth quarter worth approximately $2,633,000. Finally, Manatuck Hill Partners LLC purchased a new position in shares of Groupon during the fourth quarter valued at approximately $678,000. 90.05% of the stock is currently owned by institutional investors.

About Groupon

Groupon, Inc operates an online marketplace that connects subscribers with local merchants offering discounted goods, services and experiences. Through its website and mobile applications, Groupon provides time-limited deals across categories such as restaurants, travel, beauty and wellness, home services, and consumer products. Merchants partner with Groupon to attract new customers and drive foot traffic, leveraging the platform’s targeted marketing tools and large subscriber base to promote special offers and vouchers.

Founded in Chicago in 2008 by Andrew Mason, Eric Lefkofsky and Brad Keywell, Groupon pioneered the daily-deals model, quickly growing its user community and merchant network.