DA Davidson Cuts Grocery Outlet (NASDAQ:GO) Price Target to $7.00

Grocery Outlet (NASDAQ:GO) had its price objective lowered by equities research analysts at DA Davidson from $11.00 to $7.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. DA Davidson’s price objective would suggest a potential upside of 10.76% from the stock’s current price.

Several other research firms also recently commented on GO. Zacks Research downgraded shares of Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 14th. Deutsche Bank Aktiengesellschaft set a $11.00 price objective on shares of Grocery Outlet in a report on Thursday, January 8th. Morgan Stanley reduced their price target on Grocery Outlet from $11.00 to $7.00 and set an “equal weight” rating for the company in a research report on Thursday. Telsey Advisory Group downgraded Grocery Outlet from an “outperform” rating to a “market perform” rating and decreased their price target for the stock from $15.00 to $9.00 in a research note on Thursday. Finally, The Goldman Sachs Group dropped their price target on shares of Grocery Outlet from $12.00 to $9.00 and set a “sell” rating on the stock in a research report on Thursday, February 19th. One equities research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus price target of $10.68.

Grocery Outlet Stock Down 28.1%

Shares of Grocery Outlet stock traded down $2.47 on Thursday, hitting $6.32. 14,453,331 shares of the company traded hands, compared to its average volume of 2,667,967. Grocery Outlet has a 12-month low of $6.20 and a 12-month high of $19.41. The company has a quick ratio of 0.25, a current ratio of 1.30 and a debt-to-equity ratio of 0.40. The company has a market cap of $620.24 million, a PE ratio of -126.40, a PEG ratio of 1.80 and a beta of 0.50. The company has a 50-day moving average price of $9.79 and a 200 day moving average price of $12.74.

Grocery Outlet (NASDAQ:GO) last issued its earnings results on Wednesday, March 4th. The company reported $0.19 EPS for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.02). Grocery Outlet had a negative net margin of 0.10% and a positive return on equity of 5.86%. The firm had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same quarter last year, the firm earned $0.15 EPS. The business’s revenue for the quarter was up 10.7% compared to the same quarter last year. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Sell-side analysts predict that Grocery Outlet will post 0.63 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of GO. Aster Capital Management DIFC Ltd lifted its stake in shares of Grocery Outlet by 1,030.4% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company’s stock valued at $26,000 after buying an additional 2,308 shares in the last quarter. Bayforest Capital Ltd purchased a new stake in shares of Grocery Outlet during the 3rd quarter worth approximately $29,000. Hantz Financial Services Inc. increased its holdings in Grocery Outlet by 591.5% in the 3rd quarter. Hantz Financial Services Inc. now owns 2,033 shares of the company’s stock worth $33,000 after acquiring an additional 1,739 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in Grocery Outlet in the 4th quarter valued at about $35,000. Finally, PNC Financial Services Group Inc. raised its position in shares of Grocery Outlet by 32.3% in the second quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company’s stock valued at $37,000 after purchasing an additional 719 shares during the period. 99.87% of the stock is owned by institutional investors and hedge funds.

Grocery Outlet News Roundup

Here are the key news stories impacting Grocery Outlet this week:

• Positive Sentiment: The company announced a business optimization plan and engaged Gordon Brothers to market retail leasehold opportunities — a sign management is taking active steps to monetize underperforming locations and improve cash flow. Gordon Brothers Retained
• Positive Sentiment: Operating cash flow improved year-over-year (reported cash from operations rose), which can help liquidity while the company executes its optimization plan. QuiverQuant Cash Flow
• Neutral Sentiment: Top‑line growth: revenue was up ~10.7% y/y to $1.22B for Q4, but it narrowly missed Street revenue expectations — a mixed signal for demand. MarketBeat Q4 Summary
• Neutral Sentiment: Management hosted an earnings call and released slides/transcript outlining the quarter and the optimization plan; listeners should review management’s remediation timeline and cost savings targets. Earnings Call Transcript
• Negative Sentiment: Earnings and guidance miss: Q4 EPS was $0.19 vs. consensus $0.21 and FY‑2026 EPS guidance was cut to $0.45–$0.55 (well below the ~$0.77 consensus), which drove the immediate negative reaction. Zacks: Earnings Miss
• Negative Sentiment: Comparable-store sales weakened and management signaled increased promotions to drive traffic, which pressures margins and suggests the company is losing some “value perception” versus competitors. Seeking Alpha: Value Perception
• Negative Sentiment: Analyst reaction: multiple firms cut targets and ratings (Wells Fargo, Morgan Stanley, Jefferies, Telsey) and several analysts revised forecasts lower after the Q4 print, increasing selling pressure. Benzinga: Analyst Cuts
• Negative Sentiment: Severity of the reaction: third‑party data noted a large operating loss and a sharp net‑loss swing in 2025 (presentation/data require verification), and institutional selling was visible in recent filings — both increase near‑term downside risk. QuiverQuant: Loss & Selling

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.