Credit Suisse Group Downgrades GrubHub Inc (GRUB) to Neutral
GrubHub Inc (NASDAQ:GRUB) was downgraded by analysts at Credit Suisse Group from an “outperform” rating to a “neutral” rating in a research report issued on Monday. They currently have a $53.00 price objective on the information services provider’s stock, up from their previous price objective of $50.00. Credit Suisse Group’s target price points to a potential downside of 5.42% from the company’s previous close.
The analysts wrote, “healthy” 39x P/E multiple, Bieber commented in his downgrade note. The stock’s multiple is also assuming the company will report future results near the high end of management’s own estimates and doesn’t assume a discount for management conservatism or execution risk.Specifically, when Grubhub offers its 2018 EBITDA outlook in January it will likely be conservative and at the low end of the analyst’s accretion range for four reasons:The ongoing migration of the Eat24 platform implies a delay of accretion until late 2018 if not 2019.The pace of delivery mix shift creates some uncertainty regarding EBITDA.The company could choose to invest some of the accretions in marketing to drive higher growth.Management does have a history of being conservative when offering annual guidance.”While we are positive on Grubhub’s leadership position in a market that remains early in the online share shift, we are lowering our rating to Neutral as we believe shares embed an optimistic scenario on the magnitude of accretion from recent acquisitions,”
A number of other equities analysts have also weighed in on the company. Vetr raised GrubHub from a “sell” rating to a “strong-buy” rating and set a $62.06 price objective on the stock in a research note on Monday, July 17th. Roth Capital boosted their price objective on GrubHub from $47.00 to $55.00 and gave the stock a “buy” rating in a research note on Monday, July 17th. Zacks Investment Research raised GrubHub from a “hold” rating to a “buy” rating and set a $50.00 price objective on the stock in a research note on Tuesday, June 27th. Morgan Stanley lowered GrubHub from an “overweight” rating to an “equal weight” rating and lowered their price objective for the stock from $47.00 to $43.00 in a research note on Monday, June 26th. Finally, Oppenheimer Holdings, Inc. boosted their price objective on GrubHub from $52.00 to $60.00 and gave the stock an “outperform” rating in a research note on Thursday, August 24th. Two research analysts have rated the stock with a sell rating, ten have assigned a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company. The stock presently has an average rating of “Buy” and a consensus target price of $50.87.
Shares of GrubHub (NASDAQ GRUB) opened at 56.04 on Monday. The company has a 50-day moving average price of $52.98 and a 200-day moving average price of $43.35. GrubHub has a 12 month low of $32.43 and a 12 month high of $57.61. The company has a market capitalization of $4.84 billion and a P/E ratio of 82.41.
GrubHub (NASDAQ:GRUB) last released its quarterly earnings data on Thursday, August 3rd. The information services provider reported $0.22 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.21 by $0.01. The company had revenue of $158.79 million for the quarter, compared to analyst estimates of $158.13 million. GrubHub had a return on equity of 5.84% and a net margin of 9.29%. On average, analysts forecast that GrubHub will post $1.10 EPS for the current fiscal year.
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In other GrubHub news, CEO Matthew M. Maloney sold 6,250 shares of the company’s stock in a transaction dated Monday, June 19th. The stock was sold at an average price of $44.69, for a total transaction of $279,312.50. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Adam Dewitt sold 2,000 shares of the company’s stock in a transaction dated Monday, June 19th. The stock was sold at an average price of $44.05, for a total value of $88,100.00. Following the sale, the chief financial officer now owns 25,557 shares in the company, valued at approximately $1,125,785.85. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 400,318 shares of company stock worth $20,825,433.
A number of hedge funds and other institutional investors have recently modified their holdings of GRUB. BlackRock Inc. increased its holdings in GrubHub by 75,703.7% during the 1st quarter. BlackRock Inc. now owns 5,080,365 shares of the information services provider’s stock worth $167,094,000 after purchasing an additional 5,073,663 shares during the period. Alliancebernstein L.P. increased its holdings in GrubHub by 1,761.3% during the 1st quarter. Alliancebernstein L.P. now owns 2,343,605 shares of the information services provider’s stock worth $77,081,000 after purchasing an additional 2,217,695 shares during the period. Carmignac Gestion increased its holdings in GrubHub by 55.4% during the 2nd quarter. Carmignac Gestion now owns 4,976,545 shares of the information services provider’s stock worth $216,977,000 after purchasing an additional 1,773,959 shares during the period. Clearbridge Investments LLC increased its holdings in GrubHub by 132.0% during the 1st quarter. Clearbridge Investments LLC now owns 2,596,093 shares of the information services provider’s stock worth $85,385,000 after purchasing an additional 1,477,241 shares during the period. Finally, Caledonia Private Investments Pty Ltd increased its holdings in GrubHub by 14.0% during the 1st quarter. Caledonia Private Investments Pty Ltd now owns 9,582,509 shares of the information services provider’s stock worth $315,169,000 after purchasing an additional 1,174,124 shares during the period.
GrubHub Company Profile
Grubhub Inc provides an online and mobile platform for restaurant pick-up and delivery orders. Its products include Grubhub and Seamless Mobile Applications and Mobile Website, Grubhub and Seamless Websites, Corporate Program, Delivery, Allmenus and MenuPages, Grubhub for Restaurants, and Restaurant Websites.
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