Grocery Outlet Holding Corp. (NASDAQ:GO) Stock Rated “Reduce” by Wall Street Brokerages

Grocery Outlet Holding Corp. (NASDAQ:GO) has received a consensus rating of “Reduce” from the fourteen ratings firms that are currently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, eleven have assigned a hold recommendation and one has issued a buy recommendation on the company. The average 1-year target price among brokers that have covered the stock in the last year is $10.50.

Several equities research analysts recently weighed in on the stock. TD Cowen reiterated a “hold” rating on shares of Grocery Outlet in a research note on Tuesday, August 18th. Wells Fargo & Company boosted their price target on shares of Grocery Outlet from $9.00 to $11.00 and gave the company an “equal weight” rating in a report on Thursday, August 13th. Bank of America upgraded shares of Grocery Outlet from a “neutral” rating to a “buy” rating and increased their price objective for the company from $12.50 to $15.00 in a research note on Wednesday, September 30th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $9.00 price objective on shares of Grocery Outlet in a report on Thursday, August 13th. Finally, Weiss Ratings upgraded shares of Grocery Outlet from a “sell (d-)” rating to a “sell (d)” rating in a research report on Thursday, August 13th.

Grocery Outlet Stock Performance

Shares of NASDAQ GO opened at $12.79 on Tuesday. Grocery Outlet has a 12 month low of $5.66 and a 12 month high of $15.92. The company has a market cap of $1.27 billion, a P/E ratio of -3.30, a P/E/G ratio of 8.95 and a beta of 0.66. The business’s 50 day moving average is $11.64 and its two-hundred day moving average is $9.73. The company has a quick ratio of 0.30, a current ratio of 1.29 and a debt-to-equity ratio of 0.60.

Grocery Outlet (NASDAQ:GO) last posted its quarterly earnings data on Wednesday, August 12th. The company reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.07. The company had revenue of $1.19 billion during the quarter, compared to analysts’ expectations of $1.17 billion. Grocery Outlet had a positive return on equity of 5.84% and a negative net margin of 8.04%. Grocery Outlet’s revenue for the quarter was up 1.1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.23 earnings per share. On average, equities analysts expect that Grocery Outlet will post 0.42 EPS for the current year.

Insider Buying and Selling

In related news, insider Paul Miller acquired 8,000 shares of the business’s stock in a transaction on Thursday, August 20th. The stock was bought at an average cost of $10.90 per share, with a total value of $87,200.00. Following the completion of the acquisition, the insider owned 72,171 shares in the company, valued at $786,663.90. The trade was a 12.47% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Carey F. Jaros bought 15,000 shares of Grocery Outlet stock in a transaction dated Thursday, August 27th. The stock was purchased at an average price of $11.70 per share, for a total transaction of $175,500.00. Following the purchase, the director directly owned 60,000 shares in the company, valued at $702,000. This represents a 33.33% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 5.60% of the company’s stock.

Institutional Investors Weigh In On Grocery Outlet

Large investors have recently bought and sold shares of the business. Abel Hall LLC increased its holdings in shares of Grocery Outlet by 7.1% in the third quarter. Abel Hall LLC now owns 19,607 shares of the company’s stock valued at $221,000 after purchasing an additional 1,298 shares in the last quarter. NorthCrest Asset Manangement LLC lifted its position in Grocery Outlet by 13.5% during the 3rd quarter. NorthCrest Asset Manangement LLC now owns 15,282 shares of the company’s stock valued at $182,000 after purchasing an additional 1,821 shares during the period. GAMMA Investing LLC lifted its position in Grocery Outlet by 23.4% during the 3rd quarter. GAMMA Investing LLC now owns 10,615 shares of the company’s stock valued at $119,000 after purchasing an additional 2,016 shares during the period. Tidal Investments LLC bought a new position in shares of Grocery Outlet in the 2nd quarter valued at about $784,000. Finally, Engineers Gate Manager LP bought a new position in shares of Grocery Outlet in the 2nd quarter valued at about $310,000. 99.87% of the stock is currently owned by institutional investors.

About Grocery Outlet

Grocery Outlet Holding Corp. operates a network of discount grocery stores in the United States under the Grocery Outlet banner. The company offers a broad selection of food and household products, including fresh produce, meat, dairy, packaged groceries, beverages, health and beauty items, and general merchandise.

Grocery Outlet’s business model is based on purchasing excess inventory, discontinued products, seasonal goods, and other opportunistic merchandise from manufacturers and distributors.