Grocery Outlet (NASDAQ:GO) Trading Up 5.7% – What’s Next?

Grocery Outlet Holding Corp. (NASDAQ:GO)’s share price was up 5.7% during mid-day trading on Tuesday . The stock traded as high as $7.75 and last traded at $8.0260. Approximately 174,450 shares changed hands during trading, a decline of 95% from the average daily volume of 3,452,232 shares. The stock had previously closed at $7.59.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on GO shares. Telsey Advisory Group lowered Grocery Outlet from an “outperform” rating to a “market perform” rating and dropped their price objective for the stock from $15.00 to $9.00 in a research note on Thursday, March 5th. Jefferies Financial Group reiterated a “hold” rating and set a $7.00 price objective (down from $18.00) on shares of Grocery Outlet in a research note on Thursday, March 5th. Morgan Stanley dropped their price objective on shares of Grocery Outlet from $11.00 to $7.00 and set an “equal weight” rating for the company in a report on Thursday, March 5th. The Goldman Sachs Group lowered their target price on Grocery Outlet from $12.00 to $9.00 and set a “sell” rating for the company in a research note on Thursday, February 19th. Finally, DA Davidson raised their price target on shares of Grocery Outlet from $7.00 to $9.00 and gave the company a “neutral” rating in a report on Thursday, May 14th. Eleven analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus price target of $10.32.

Grocery Outlet Stock Up 0.1%

The company has a market cap of $804.24 million, a price-to-earnings ratio of -2.10, a price-to-earnings-growth ratio of 12.76 and a beta of 0.66. The company has a current ratio of 1.28, a quick ratio of 0.27 and a debt-to-equity ratio of 0.59. The firm’s fifty day moving average price is $7.20 and its 200-day moving average price is $9.20.

Grocery Outlet (NASDAQ:GO) last announced its earnings results on Wednesday, May 13th. The company reported $0.05 earnings per share for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same period in the prior year, the business earned $0.13 EPS. The company’s revenue for the quarter was up 3.6% compared to the same quarter last year. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Sell-side analysts predict that Grocery Outlet Holding Corp. will post 0.37 earnings per share for the current year.

Insider Buying and Selling at Grocery Outlet

In related news, Director Jeffrey York acquired 120,000 shares of the firm’s stock in a transaction dated Monday, March 9th. The stock was bought at an average price of $5.82 per share, for a total transaction of $698,400.00. Following the acquisition, the director directly owned 120,000 shares of the company’s stock, valued at approximately $698,400. The trade was a ? increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Jason J. N. Potter acquired 286,097 shares of the firm’s stock in a transaction dated Thursday, March 19th. The stock was bought at an average price of $5.90 per share, with a total value of $1,687,972.30. Following the acquisition, the chief executive officer directly owned 574,366 shares in the company, valued at $3,388,759.40. This represents a 99.25% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders acquired 899,905 shares of company stock worth $5,396,307 and sold 89,493 shares worth $524,431. Corporate insiders own 4.50% of the company’s stock.

Hedge Funds Weigh In On Grocery Outlet

Hedge funds have recently modified their holdings of the stock. Royal Bank of Canada grew its stake in shares of Grocery Outlet by 5.8% in the first quarter. Royal Bank of Canada now owns 122,565 shares of the company’s stock valued at $1,713,000 after buying an additional 6,736 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Grocery Outlet by 14.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 357,856 shares of the company’s stock valued at $5,003,000 after buying an additional 44,214 shares in the last quarter. Creative Planning grew its stake in shares of Grocery Outlet by 25.4% in the second quarter. Creative Planning now owns 16,104 shares of the company’s stock valued at $200,000 after buying an additional 3,263 shares in the last quarter. JPMorgan Chase & Co. grew its stake in shares of Grocery Outlet by 13.8% in the second quarter. JPMorgan Chase & Co. now owns 220,432 shares of the company’s stock valued at $2,738,000 after buying an additional 26,725 shares in the last quarter. Finally, Franklin Resources Inc. bought a new position in shares of Grocery Outlet in the second quarter valued at $149,000. Institutional investors 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.