Grocery Outlet (NASDAQ:GO) Releases Earnings Results, Beats Expectations By $0.07 EPS

Grocery Outlet (NASDAQ:GO) announced its earnings results on Wednesday. The company reported $0.20 EPS for the quarter, topping the consensus estimate of $0.13 by $0.07, FiscalAI reports. Grocery Outlet had a negative net margin of 8.08% and a positive return on equity of 5.69%. The business had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.17 billion.

Grocery Outlet Stock Performance

NASDAQ GO traded up $0.34 during trading on Wednesday, reaching $10.17. The company’s stock had a trading volume of 4,294,964 shares, compared to its average volume of 3,145,219. The company has a current ratio of 1.28, a quick ratio of 0.27 and a debt-to-equity ratio of 0.59. The firm has a market capitalization of $1.01 billion, a price-to-earnings ratio of -2.62, a price-to-earnings-growth ratio of 15.51 and a beta of 0.65. Grocery Outlet has a 12 month low of $5.66 and a 12 month high of $19.23. The firm has a 50 day moving average price of $9.55 and a 200 day moving average price of $8.63.

Insider Activity

In other Grocery Outlet news, insider Paul Blaine Miller bought 10,000 shares of the stock in a transaction dated Thursday, June 18th. The shares were bought at an average cost of $9.37 per share, with a total value of $93,700.00. Following the completion of the acquisition, the insider owned 59,171 shares of the company’s stock, valued at $554,432.27. This trade represents a 20.34% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. 5.60% of the stock is currently owned by insiders.

Institutional Trading of Grocery Outlet

Several large investors have recently made changes to their positions in GO. T. Rowe Price Investment Management Inc. raised its holdings in shares of Grocery Outlet by 54.0% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 15,763,945 shares of the company’s stock worth $159,216,000 after buying an additional 5,528,722 shares in the last quarter. Invesco Ltd. boosted its stake in Grocery Outlet by 106.5% in the fourth quarter. Invesco Ltd. now owns 1,914,410 shares of the company’s stock valued at $19,336,000 after buying an additional 987,367 shares in the last quarter. Vident Advisory LLC grew its position in Grocery Outlet by 19.9% in the fourth quarter. Vident Advisory LLC now owns 16,965 shares of the company’s stock valued at $171,000 after acquiring an additional 2,817 shares during the last quarter. Mackenzie Financial Corp grew its position in Grocery Outlet by 0.5% in the fourth quarter. Mackenzie Financial Corp now owns 4,709,721 shares of the company’s stock valued at $47,757,000 after acquiring an additional 22,418 shares during the last quarter. Finally, Empowered Funds LLC raised its stake in Grocery Outlet by 4.6% during the fourth quarter. Empowered Funds LLC now owns 435,665 shares of the company’s stock worth $4,400,000 after acquiring an additional 19,183 shares in the last quarter. Institutional investors and hedge funds own 99.87% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have issued reports on GO. Wells Fargo & Company raised their price objective on shares of Grocery Outlet from $7.00 to $9.00 and gave the stock an “equal weight” rating in a research report on Thursday, May 14th. TD Cowen increased their target price on Grocery Outlet from $6.00 to $8.00 and gave the stock a “hold” rating in a research note on Thursday, May 14th. DA Davidson lifted their price target on Grocery Outlet from $7.00 to $9.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Finally, Weiss Ratings downgraded Grocery Outlet from a “sell (d)” rating to a “sell (d-)” rating in a research note on Thursday, July 30th. Eleven analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Reduce” and a consensus price target of $9.65.

About Grocery Outlet

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.