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

Grocery Outlet Holding Corp. (NASDAQ:GO)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $6.78, but opened at $7.18. Grocery Outlet shares last traded at $6.9560, with a volume of 294,209 shares changing hands.

Analysts Set New Price Targets

A number of analysts have recently issued reports on GO shares. Telsey Advisory Group lowered Grocery Outlet from an “outperform” rating to a “market perform” rating and lowered their price target for the stock from $15.00 to $9.00 in a research note on Thursday, March 5th. Weiss Ratings reissued a “sell (d)” rating on shares of Grocery Outlet in a research note on Thursday, January 22nd. Deutsche Bank Aktiengesellschaft set a $11.00 target price on shares of Grocery Outlet in a research note on Thursday, January 8th. Morgan Stanley dropped their target price on shares of Grocery Outlet from $11.00 to $7.00 and set an “equal weight” rating for the company in a report on Thursday, March 5th. Finally, Jefferies Financial Group reiterated a “hold” rating and issued a $7.00 target price (down from $18.00) on shares of Grocery Outlet in a research report on Thursday, March 5th. Eleven analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Reduce” and a consensus price target of $10.68.

Grocery Outlet Stock Performance

The firm has a fifty day moving average price of $8.55 and a 200 day moving average price of $11.20. The company has a current ratio of 1.37, a quick ratio of 0.32 and a debt-to-equity ratio of 0.49. The firm has a market cap of $679.39 million, a PE ratio of -3.01, a price-to-earnings-growth ratio of 2.06 and a beta of 0.50.

Grocery Outlet (NASDAQ:GO) last announced its quarterly earnings data on Wednesday, March 4th. The company reported $0.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.02). Grocery Outlet had a negative net margin of 4.80% and a positive return on equity of 5.93%. The firm had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same period in the prior year, the company posted $0.15 EPS. The company’s revenue for the quarter was up 10.7% compared to the same quarter last year. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. As a group, equities research analysts expect 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 Jeffrey York purchased 120,000 shares of the business’s stock in a transaction dated Monday, March 9th. The stock was acquired at an average price of $5.82 per share, for a total transaction of $698,400.00. Following the acquisition, the director directly owned 120,000 shares of the company’s stock, valued at approximately $698,400. This represents a ? increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Steven K. Wilson sold 4,721 shares of Grocery Outlet stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $6.06, for a total transaction of $28,609.26. Following the sale, the executive vice president directly owned 120,171 shares in the company, valued at approximately $728,236.26. The trade was a 3.78% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have acquired 899,905 shares of company stock worth $5,396,307 and have sold 89,493 shares worth $524,431. 4.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Grocery Outlet

Several large investors have recently modified their holdings of GO. PNC Financial Services Group Inc. grew its holdings in shares of Grocery Outlet by 32.3% during the 2nd quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company’s stock worth $37,000 after purchasing an additional 719 shares during the period. Thrivent Financial for Lutherans lifted its position in Grocery Outlet by 1.0% in the second quarter. Thrivent Financial for Lutherans now owns 72,087 shares of the company’s stock valued at $895,000 after buying an additional 739 shares during the last quarter. Amalgamated Bank lifted its position in Grocery Outlet by 3.5% in the third quarter. Amalgamated Bank now owns 28,875 shares of the company’s stock valued at $463,000 after buying an additional 967 shares during the last quarter. Natixis Advisors LLC boosted its stake in Grocery Outlet by 5.5% during the third quarter. Natixis Advisors LLC now owns 30,320 shares of the company’s stock worth $487,000 after buying an additional 1,591 shares during the period. Finally, Hantz Financial Services Inc. boosted its stake in Grocery Outlet by 591.5% during the third quarter. Hantz Financial Services Inc. now owns 2,033 shares of the company’s stock worth $33,000 after buying an additional 1,739 shares during the period. Institutional investors and hedge funds own 99.87% of the company’s stock.

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.