Grocery Outlet (NASDAQ:GO) Shares Down 4.7% – What’s Next?

Grocery Outlet Holding Corp. (NASDAQ:GO) shares were down 4.7% on Thursday . The company traded as low as $11.65 and last traded at $11.64. Approximately 717,381 shares changed hands during mid-day trading, a decline of 77% from the average session volume of 3,121,413 shares. The stock had previously closed at $12.21.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on GO. Telsey Advisory Group reaffirmed a “market perform” rating on shares of Grocery Outlet in a research note on Thursday, August 13th. Roth Capital reaffirmed a “neutral” rating and set a $10.00 price objective on shares of Grocery Outlet in a research report on Thursday, August 13th. Morgan Stanley increased their price objective on Grocery Outlet from $7.00 to $11.00 and gave the stock an “equal weight” rating in a report on Thursday, August 13th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $9.00 target price on shares of Grocery Outlet in a research report on Thursday, August 13th. Finally, Weiss Ratings upgraded Grocery Outlet from a “sell (d-)” rating to a “sell (d)” rating in a research note on Thursday, August 13th. Twelve analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Grocery Outlet has an average rating of “Reduce” and an average price target of $10.59.

Grocery Outlet Trading Down 5.1%

The company has a market cap of $1.15 billion, a P/E ratio of -2.99, a PEG ratio of 8.54 and a beta of 0.65. The company has a current ratio of 1.29, a quick ratio of 0.30 and a debt-to-equity ratio of 0.60. The business has a 50 day moving average price of $10.05 and a 200-day moving average price of $8.76.

Grocery Outlet (NASDAQ:GO) last released its earnings results 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 business had revenue of $1.19 billion during the quarter, compared to analysts’ expectations of $1.17 billion. Grocery Outlet had a negative net margin of 8.04% and a positive return on equity of 5.84%. The firm’s revenue was up 1.1% on a year-over-year basis. During the same period last year, the business earned $0.23 earnings per share. Analysts forecast that Grocery Outlet Holding Corp. will post 0.42 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Paul Blaine Miller acquired 8,000 shares of the firm’s stock in a transaction dated Thursday, August 20th. The stock was bought at an average price of $10.90 per share, with a total value of $87,200.00. Following the transaction, the insider directly owned 72,171 shares in the company, valued at approximately $786,663.90. The trade was a 12.47% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders have acquired a total of 23,000 shares of company stock valued at $228,400 in the last ninety days. Company insiders own 5.60% of the company’s stock.

Institutional Investors Weigh In On Grocery Outlet

Hedge funds have recently bought and sold shares of the company. UBS Group AG grew its position in shares of Grocery Outlet by 87.6% during the 4th quarter. UBS Group AG now owns 2,726,299 shares of the company’s stock worth $27,536,000 after purchasing an additional 1,272,859 shares in the last quarter. Vanguard Group Inc. increased its holdings in shares of Grocery Outlet by 1.9% during the fourth quarter. Vanguard Group Inc. now owns 11,255,936 shares of the company’s stock worth $113,685,000 after purchasing an additional 213,325 shares during the period. CenterBook Partners LP raised its position in shares of Grocery Outlet by 262.2% in the fourth quarter. CenterBook Partners LP now owns 645,159 shares of the company’s stock valued at $6,516,000 after buying an additional 467,019 shares in the last quarter. Bank of America Corp DE raised its position in shares of Grocery Outlet by 31.3% in the first quarter. Bank of America Corp DE now owns 1,083,541 shares of the company’s stock valued at $7,639,000 after buying an additional 258,292 shares in the last quarter. Finally, Clearbridge Investments LLC boosted its stake in shares of Grocery Outlet by 6.6% in the fourth quarter. Clearbridge Investments LLC now owns 2,816,721 shares of the company’s stock valued at $28,449,000 after buying an additional 173,308 shares during the period. 99.87% of the stock is currently owned by institutional investors and hedge funds.

Grocery Outlet Company Profile

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.