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

Grocery Outlet Holding Corp. (NASDAQ:GO) gapped down before the market opened on Wednesday. The stock had previously closed at $14.02, but opened at $12.78. Grocery Outlet shares last traded at $12.6540, with a volume of 568,017 shares.

Trending Headlines about Grocery Outlet

These are some of the GO headlines that stood out recently:

• Positive Sentiment: Wells Fargo raised its price target to $13 from $11, while maintaining an Equal Weight rating. The new target indicates limited upside at the cited share price.
• Neutral Sentiment: Fiscal 2026 EPS guidance is $0.52–$0.55, versus a consensus estimate of $0.52—an improvement at the midpoint, but not a major upgrade relative to expectations.
• Negative Sentiment: Quarterly EPS of $0.16 was below the $0.21 reported a year earlier, while revenue grew just 0.9% year over year. Higher costs and promotional pricing are pressuring the profit outlook, limiting the impact of the sales beat. Profit outlook article

Analysts Set New Price Targets

Several analysts have recently commented on GO shares. Telsey Advisory Group set a $14.00 price objective on shares of Grocery Outlet in a research report on Wednesday. Wells Fargo & Company boosted their target price on shares of Grocery Outlet from $11.00 to $13.00 and gave the company an “equal weight” rating in a research report on Wednesday. TD Cowen boosted their target price on shares of Grocery Outlet from $12.00 to $14.00 and gave the company a “hold” rating in a research report on Wednesday. Bank of America raised shares of Grocery Outlet from a “neutral” rating to a “buy” rating and increased their target price for the stock from $12.50 to $15.00 in a research note on Wednesday, September 30th. Finally, Weiss Ratings upgraded shares of Grocery Outlet from a “sell (d-)” rating to a “sell (d)” rating in a report on Thursday, August 13th. One investment analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $11.41.

Grocery Outlet Stock Performance

The company has a debt-to-equity ratio of 0.60, a current ratio of 1.29 and a quick ratio of 0.30. The company’s fifty day simple moving average is $12.21 and its two-hundred day simple moving average is $9.71. The stock has a market cap of $1.27 billion, a price-to-earnings ratio of -3.31, a P/E/G ratio of 9.64 and a beta of 0.64.

Grocery Outlet (NASDAQ:GO) last posted its earnings results on Tuesday, November 10th. The company reported $0.16 EPS for the quarter, hitting the consensus estimate of $0.16. The company had revenue of $1.18 billion during the quarter, compared to the consensus estimate 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 for the quarter was up .9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.21 earnings per share. On average, analysts forecast that Grocery Outlet Holding Corp. will post 0.42 earnings per share for the current year.

Insider Transactions at Grocery Outlet

In related news, insider Paul Miller acquired 8,000 shares of the firm’s stock in a transaction on Thursday, August 20th. The stock was purchased at an average cost of $10.90 per share, with a total value of $87,200.00. Following the acquisition, the insider owned 72,171 shares of the company’s stock, valued at approximately $786,663.90. This trade represents a 12.47% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Carey Jaros acquired 15,000 shares of the firm’s stock in a transaction on Thursday, August 27th. The shares were bought at an average cost of $11.70 per share, with a total value of $175,500.00. Following the completion of the acquisition, the director directly owned 60,000 shares in the company, valued at approximately $702,000. This represents a 33.33% increase in their position. The SEC filing for this purchase provides additional information. 5.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Grocery Outlet

Institutional investors have recently bought and sold shares of the stock. HighTower Advisors LLC raised its position in Grocery Outlet by 2.3% in the 2nd quarter. HighTower Advisors LLC now owns 50,377 shares of the company’s stock valued at $503,000 after buying an additional 1,144 shares during the last quarter. Pinnacle Wealth Planning Services Inc. lifted its stake in Grocery Outlet by 103.3% during the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,511 shares of the company’s stock valued at $28,000 after acquiring an additional 1,276 shares in the last quarter. Abel Hall LLC boosted its holdings in Grocery Outlet by 7.1% during the 3rd quarter. Abel Hall LLC now owns 19,607 shares of the company’s stock worth $221,000 after acquiring an additional 1,298 shares during the last quarter. NorthCrest Asset Manangement LLC boosted its holdings in Grocery Outlet by 13.5% during the 3rd quarter. NorthCrest Asset Manangement LLC now owns 15,282 shares of the company’s stock worth $182,000 after acquiring an additional 1,821 shares during the last quarter. Finally, GAMMA Investing LLC boosted its holdings in Grocery Outlet by 23.4% during the 3rd quarter. GAMMA Investing LLC now owns 10,615 shares of the company’s stock worth $119,000 after acquiring an additional 2,016 shares during the last quarter. Institutional investors own 99.87% of the company’s stock.

About Grocery Outlet

Grocery Outlet Holding Corp. operates Grocery Outlet Bargain Market, a discount grocery chain offering brand-name products and private-label items at value-oriented prices. Its stores carry a range of goods, including groceries, fresh produce, meat, dairy, frozen foods and household products. The company uses opportunistic buying to source products, which can result in changing assortments and limited-time deals. Founded in 1946 by Jim Read, Grocery Outlet has grown from a California-based business into a retailer serving communities across the western United States and parts of the East Coast.