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

Grocery Outlet Holding Corp. (NASDAQ:GO)’s stock price 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.

Key Grocery Outlet News

These are some of the GO news items that stood out recently:

• Positive Sentiment: Third-quarter revenue was $1.18 billion, ahead of the roughly $1.17 billion consensus estimate. Comparable-store sales rose 0.5%, and fiscal 2026 revenue guidance of $4.70 billion–$4.72 billion is slightly above the $4.7 billion estimate. Company results
• 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.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on GO. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $9.00 target price on shares of Grocery Outlet in a research report on Thursday, August 13th. Wells Fargo & Company raised their price target on shares of Grocery Outlet from $11.00 to $13.00 and gave the stock an “equal weight” rating in a research report on Wednesday. Morgan Stanley lifted their price objective on shares of Grocery Outlet from $7.00 to $11.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 13th. UBS Group boosted their price objective on shares of Grocery Outlet from $10.00 to $11.50 and gave the company a “neutral” rating in a report on Monday, August 17th. Finally, Guggenheim restated a “neutral” rating on shares of Grocery Outlet in a research report on Wednesday. One research analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, Grocery Outlet presently has a consensus rating of “Reduce” and an average price target of $11.41.

Grocery Outlet Stock Down 8.6%

The company has a market capitalization 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. 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 firm’s fifty day moving average price is $12.21 and its 200-day moving average price is $9.71.

Grocery Outlet (NASDAQ:GO) last released its quarterly earnings results on Tuesday, November 10th. The company reported $0.16 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.16. Grocery Outlet had a negative net margin of 8.04% and a positive return on equity of 5.84%. The firm had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter last year, the firm earned $0.21 earnings per share. The company’s revenue for the quarter was up .9% on a year-over-year basis. Sell-side analysts expect that Grocery Outlet Holding Corp. will post 0.42 earnings per share for the current fiscal year.

Insider Transactions at Grocery Outlet

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

Institutional Investors Weigh In On Grocery Outlet

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

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.