Deutsche Bank Aktiengesellschaft Begins Coverage on Grocery Outlet (NASDAQ:GO)

Research analysts at Deutsche Bank Aktiengesellschaft started coverage on shares of Grocery Outlet (NASDAQ:GO) in a research report issued to clients and investors on Thursday. The brokerage set a “hold” rating on the stock.

Other analysts have also recently issued research reports about the company. Telsey Advisory Group reissued an “outperform” rating and issued a $17.00 price objective on shares of Grocery Outlet in a research report on Wednesday, December 3rd. TD Cowen lowered their target price on shares of Grocery Outlet from $18.00 to $16.00 and set a “hold” rating for the company in a research note on Wednesday, November 5th. Wells Fargo & Company dropped their price objective on shares of Grocery Outlet from $19.00 to $16.00 and set an “overweight” rating on the stock in a report on Friday, December 19th. Zacks Research cut Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 14th. Finally, UBS Group reissued a “neutral” rating and issued a $11.50 price objective on shares of Grocery Outlet in a report on Thursday, December 18th. Four equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $14.86.

Grocery Outlet Stock Performance

Grocery Outlet stock traded up $0.12 during midday trading on Thursday, reaching $9.26. 437,494 shares of the company traded hands, compared to its average volume of 2,767,269. The business has a 50 day moving average of $11.01 and a two-hundred day moving average of $14.03. Grocery Outlet has a 12 month low of $8.96 and a 12 month high of $19.41. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.30 and a quick ratio of 0.25. The firm has a market capitalization of $908.29 million, a price-to-earnings ratio of -185.08, a price-to-earnings-growth ratio of 1.51 and a beta of 0.47.

Grocery Outlet (NASDAQ:GO) last issued its earnings results on Tuesday, November 4th. The company reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.19 by $0.02. Grocery Outlet had a positive return on equity of 5.86% and a negative net margin of 0.10%.The firm had revenue of $1.17 billion for the quarter, compared to analysts’ expectations of $1.18 billion. During the same period in the previous year, the firm posted $0.28 earnings per share. The business’s revenue was up 5.4% compared to the same quarter last year. Grocery Outlet has set its FY 2025 guidance at 0.780-0.80 EPS. As a group, research analysts predict that Grocery Outlet will post 0.63 earnings per share for the current year.

Insider Buying and Selling

In related news, EVP Steven K. Wilson sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, November 7th. The shares were sold at an average price of $12.53, for a total value of $313,250.00. Following the sale, the executive vice president owned 116,923 shares of the company’s stock, valued at $1,465,045.19. This trade represents a 17.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 4.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Grocery Outlet

Institutional investors and hedge funds have recently modified their holdings of the company. Dimensional Fund Advisors LP lifted its position in shares of Grocery Outlet by 5.0% in the third quarter. Dimensional Fund Advisors LP now owns 4,619,851 shares of the company’s stock valued at $74,149,000 after acquiring an additional 221,693 shares in the last quarter. Marshall Wace LLP raised its holdings in shares of Grocery Outlet by 0.5% in the 3rd quarter. Marshall Wace LLP now owns 4,577,371 shares of the company’s stock worth $73,467,000 after purchasing an additional 20,819 shares during the period. Van Berkom & Associates Inc. lifted its position in Grocery Outlet by 16.9% during the third quarter. Van Berkom & Associates Inc. now owns 3,757,022 shares of the company’s stock valued at $60,300,000 after buying an additional 543,535 shares in the last quarter. Wellington Management Group LLP boosted its position in Grocery Outlet by 3.8% during the 3rd quarter. Wellington Management Group LLP now owns 3,548,106 shares of the company’s stock worth $56,947,000 after purchasing an additional 129,090 shares during the period. Finally, Geode Capital Management LLC grew its stake in shares of Grocery Outlet by 41.7% in the second quarter. Geode Capital Management LLC now owns 2,390,051 shares of the company’s stock valued at $29,688,000 after buying an additional 702,807 shares in the last quarter. 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.