Grocery Outlet Holding Corp. (NASDAQ:GO) Receives $10.59 Average Price Target from Analysts

Grocery Outlet Holding Corp. (NASDAQ:GO) has received an average rating of “Reduce” from the fourteen brokerages that are presently covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a sell rating and twelve have issued a hold rating on the company. The average 12 month price target among brokerages that have covered the stock in the last year is $10.5909.

Several equities analysts have recently weighed in on GO shares. Telsey Advisory Group restated a “market perform” rating on shares of Grocery Outlet in a research report on Thursday, August 13th. Roth Capital reiterated a “neutral” rating and issued a $10.00 target price on shares of Grocery Outlet in a report on Thursday, August 13th. Weiss Ratings raised shares of Grocery Outlet from a “sell (d-)” rating to a “sell (d)” rating in a research note on Thursday, August 13th. Wells Fargo & Company raised their target price on shares of Grocery Outlet from $9.00 to $11.00 and gave the stock an “equal weight” rating in a report on Thursday, August 13th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $9.00 price target on shares of Grocery Outlet in a report on Thursday, August 13th.

Grocery Outlet Price Performance

GO opened at $12.38 on Monday. Grocery Outlet has a one year low of $5.66 and a one year high of $18.35. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.30 and a current ratio of 1.29. The stock’s fifty day moving average is $10.41 and its 200-day moving average is $8.86. The company has a market capitalization of $1.23 billion, a PE ratio of -3.20, a P/E/G ratio of 8.61 and a beta of 0.72.

Grocery Outlet (NASDAQ:GO) last announced 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 positive return on equity of 5.84% and a negative net margin of 8.04%.The company’s quarterly revenue was up 1.1% on a year-over-year basis. During the same quarter last year, the business posted $0.23 earnings per share. On average, equities analysts predict that Grocery Outlet will post 0.42 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Paul Miller purchased 8,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The stock was acquired at an average price of $10.90 per share, for a total transaction of $87,200.00. Following the transaction, the insider directly owned 72,171 shares of the company’s stock, valued at $786,663.90. This trade represents a 12.47% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Carey Jaros purchased 15,000 shares of the company’s stock in a transaction that occurred on Thursday, August 27th. The stock was bought at an average cost 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. The SEC filing for this purchase provides additional information. Insiders have bought 38,000 shares of company stock worth $403,900 over the last ninety days. 5.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Grocery Outlet

Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in Grocery Outlet during the second quarter valued at $152,440,000. T. Rowe Price Investment Management Inc. boosted 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 worth $159,216,000 after acquiring an additional 5,528,722 shares during the period. Millennium Management LLC boosted its position in Grocery Outlet by 3,558.0% during the 3rd quarter. Millennium Management LLC now owns 1,825,407 shares of the company’s stock worth $29,298,000 after acquiring an additional 1,775,505 shares during the period. UBS Group AG grew its stake in Grocery Outlet by 87.6% during the 4th quarter. UBS Group AG now owns 2,726,299 shares of the company’s stock valued at $27,536,000 after acquiring an additional 1,272,859 shares in the last quarter. Finally, Solas Capital Management LLC purchased a new position in Grocery Outlet during the 2nd quarter valued at about $11,368,000. Hedge funds and other 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.