Grocery Outlet (NASDAQ:GO) Downgraded by Wells Fargo & Company to Equal Weight

Grocery Outlet (NASDAQ:GO) was downgraded by research analysts at Wells Fargo & Company from an “overweight” rating to an “equal weight” rating in a report released on Wednesday, Marketbeat Ratings reports. They currently have a $10.50 price objective on the stock, down from their previous price objective of $16.00. Wells Fargo & Company‘s price target indicates a potential upside of 4.06% from the stock’s current price.

Several other equities analysts have also recently issued reports on the stock. DA Davidson reaffirmed a “neutral” rating and issued a $15.00 price objective on shares of Grocery Outlet in a research note on Thursday, December 4th. Deutsche Bank Aktiengesellschaft set a $11.00 price objective on Grocery Outlet in a research note on Thursday, January 8th. Morgan Stanley reduced their target price on Grocery Outlet from $14.00 to $11.00 and set an “equal weight” rating for the company in a report on Thursday, January 15th. Telsey Advisory Group decreased their price target on Grocery Outlet from $17.00 to $15.00 and set an “outperform” rating for the company in a research report on Tuesday, February 17th. Finally, Zacks Research downgraded Grocery Outlet from a “strong-buy” rating to a “hold” rating in a report on Friday, November 14th. Three equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $13.64.

Grocery Outlet Stock Performance

Shares of NASDAQ GO opened at $10.09 on Wednesday. Grocery Outlet has a 1 year low of $8.96 and a 1 year high of $19.41. The firm has a market cap of $990.20 million, a P/E ratio of -201.80, a PEG ratio of 2.03 and a beta of 0.49. The stock has a fifty day moving average price of $9.87 and a two-hundred day moving average price of $13.08. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.25 and a current ratio of 1.30.

Hedge Funds Weigh In On Grocery Outlet

Several institutional investors and hedge funds have recently modified their holdings of GO. T. Rowe Price Investment Management Inc. raised its holdings in shares of Grocery Outlet by 54.0% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 15,763,945 shares of the company’s stock worth $159,216,000 after acquiring an additional 5,528,722 shares in the last quarter. Millennium Management LLC increased its position in Grocery Outlet by 3,558.0% in the 3rd quarter. Millennium Management LLC now owns 1,825,407 shares of the company’s stock worth $29,298,000 after purchasing an additional 1,775,505 shares during the last quarter. UBS Group AG raised its stake in shares of Grocery Outlet by 87.6% during the 4th quarter. UBS Group AG now owns 2,726,299 shares of the company’s stock worth $27,536,000 after purchasing an additional 1,272,859 shares in the last quarter. Boston Partners lifted its holdings in shares of Grocery Outlet by 219.7% during the 3rd quarter. Boston Partners now owns 1,462,633 shares of the company’s stock valued at $23,475,000 after buying an additional 1,005,126 shares during the last quarter. Finally, Invesco Ltd. grew its stake in shares of Grocery Outlet by 106.5% in the 4th 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. 99.87% of the stock is currently owned by hedge funds and other institutional investors.

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.