Grocery Outlet (NASDAQ:GO) Shares Down 4.6% – What’s Next?

Grocery Outlet Holding Corp. (NASDAQ:GO)’s share price dropped 4.6% during trading on Wednesday . The stock traded as low as $15.18 and last traded at $15.22. Approximately 984,858 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 1,555,644 shares. The stock had previously closed at $15.95.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on GO. Wells Fargo & Company reduced their price objective on shares of Grocery Outlet from $26.00 to $23.00 and set an “overweight” rating for the company in a research report on Wednesday, November 6th. TD Cowen cut Grocery Outlet from a “buy” rating to a “hold” rating and cut their target price for the stock from $25.00 to $16.00 in a research report on Wednesday, November 6th. The Goldman Sachs Group reduced their target price on Grocery Outlet from $17.00 to $15.00 and set a “sell” rating for the company in a report on Friday, November 1st. Deutsche Bank Aktiengesellschaft dropped their price target on Grocery Outlet from $29.00 to $26.00 and set a “buy” rating on the stock in a research note on Wednesday, November 6th. Finally, UBS Group decreased their price objective on Grocery Outlet from $21.00 to $16.00 and set a “neutral” rating for the company in a report on Wednesday, November 6th. One analyst has rated the stock with a sell rating, eight have given a hold rating, two have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Grocery Outlet currently has an average rating of “Hold” and a consensus target price of $18.00.

Grocery Outlet Price Performance

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’s 50 day moving average is $17.66 and its 200 day moving average is $17.85. The stock has a market cap of $1.48 billion, a price-to-earnings ratio of 29.82, a PEG ratio of 16.92 and a beta of 0.31.

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

Insider Buying and Selling at Grocery Outlet

In other news, Director Erik D. Ragatz acquired 110,000 shares of the business’s stock in a transaction dated Friday, November 15th. The stock was acquired at an average price of $18.25 per share, with a total value of $2,007,500.00. Following the completion of the transaction, the director now directly owns 539,785 shares in the company, valued at approximately $9,851,076.25. This represents a 25.59 % increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. 4.50% of the stock is currently owned by insiders.

Institutional Trading of Grocery Outlet

Several hedge funds and other institutional investors have recently bought and sold shares of GO. Millennium Management LLC grew its holdings in Grocery Outlet by 677.6% in the second quarter. Millennium Management LLC now owns 1,981,558 shares of the company’s stock valued at $43,832,000 after purchasing an additional 1,726,741 shares during the period. Solel Partners LP acquired a new stake in shares of Grocery Outlet during the 2nd quarter worth $35,980,000. Point72 Asset Management L.P. raised its position in shares of Grocery Outlet by 159.8% in the 3rd quarter. Point72 Asset Management L.P. now owns 1,235,078 shares of the company’s stock worth $21,676,000 after buying an additional 759,697 shares during the period. Dimensional Fund Advisors LP boosted its holdings in Grocery Outlet by 22.1% in the second quarter. Dimensional Fund Advisors LP now owns 3,613,617 shares of the company’s stock valued at $79,933,000 after acquiring an additional 655,065 shares during the last quarter. Finally, Jane Street Group LLC grew its position in Grocery Outlet by 357.7% during the third quarter. Jane Street Group LLC now owns 519,542 shares of the company’s stock valued at $9,118,000 after acquiring an additional 406,039 shares during the period. 99.87% of the stock is owned by hedge funds and other institutional investors.

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.