Grocery Outlet (NASDAQ:GO) Trading Down 4.7% – Here’s Why

Grocery Outlet Holding Corp. (NASDAQ:GO) dropped 4.7% during trading on Monday . The stock traded as low as $18.14 and last traded at $18.22. Approximately 287,798 shares changed hands during mid-day trading, a decline of 84% from the average daily volume of 1,829,310 shares. The stock had previously closed at $19.11.

Analyst Upgrades and Downgrades

GO has been the subject of several research reports. UBS Group lowered their target price on Grocery Outlet from $21.00 to $16.00 and set a “neutral” rating for the company in a research note on Wednesday, November 6th. Roth Mkm decreased their price objective on Grocery Outlet from $20.00 to $16.00 and set a “neutral” rating for the company in a research note on Wednesday, November 6th. Loop Capital began coverage on Grocery Outlet in a research note on Thursday, October 17th. They set a “hold” rating and a $17.00 price objective for the company. Deutsche Bank Aktiengesellschaft decreased their price objective on Grocery Outlet from $29.00 to $26.00 and set a “buy” rating for the company in a research note on Wednesday, November 6th. Finally, TD Cowen cut Grocery Outlet from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $25.00 to $16.00 in a research note on Wednesday, November 6th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating, two have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $18.00.

Grocery Outlet Stock Down 8.9 %

The firm has a 50-day moving average price of $17.80 and a 200 day moving average price of $18.85. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.46 and a quick ratio of 0.33. The company has a market cap of $1.69 billion, a price-to-earnings ratio of 34.20, a P/E/G ratio of 4.74 and a beta of 0.25.

Grocery Outlet (NASDAQ:GO) last issued its quarterly earnings results on Tuesday, November 5th. The company reported $0.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.01. Grocery Outlet had a return on equity of 5.25% and a net margin of 1.20%. The business had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.10 billion. During the same quarter in the prior year, the business posted $0.25 earnings per share. The firm’s quarterly revenue was up 10.4% compared to the same quarter last year. Sell-side analysts predict that Grocery Outlet Holding Corp. will post 0.63 EPS for the current year.

Insiders Place Their Bets

In other news, Director Erik D. Ragatz acquired 110,000 shares of the business’s stock in a transaction that occurred on Friday, November 15th. The shares were bought at an average price of $18.25 per share, with a total value of $2,007,500.00. Following the acquisition, the director now directly owns 539,785 shares in the company, valued at $9,851,076.25. The trade was a 25.59 % increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Eric J. Jr. Lindberg sold 200,095 shares of the firm’s stock in a transaction on Thursday, September 19th. The shares were sold at an average price of $16.29, for a total value of $3,259,547.55. Following the sale, the director now directly owns 70,938 shares in the company, valued at approximately $1,155,580.02. This trade represents a 73.83 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of GO. Franklin Resources Inc. raised its position in shares of Grocery Outlet by 1.8% in the 3rd quarter. Franklin Resources Inc. now owns 29,987 shares of the company’s stock worth $526,000 after acquiring an additional 529 shares in the last quarter. Blue Trust Inc. raised its position in shares of Grocery Outlet by 76.6% in the 3rd quarter. Blue Trust Inc. now owns 1,665 shares of the company’s stock worth $29,000 after acquiring an additional 722 shares in the last quarter. Innealta Capital LLC bought a new position in shares of Grocery Outlet in the 2nd quarter worth about $38,000. Capital Performance Advisors LLP bought a new position in shares of Grocery Outlet in the 3rd quarter worth about $32,000. Finally, Arizona State Retirement System raised its position in shares of Grocery Outlet by 7.2% in the 2nd quarter. Arizona State Retirement System now owns 27,779 shares of the company’s stock worth $614,000 after acquiring an additional 1,862 shares in the last quarter. 99.87% of the stock is owned by institutional investors and hedge funds.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products.