Grocery Outlet (NASDAQ:GO) Price Target Lowered to $7.00 at Wells Fargo & Company

Grocery Outlet (NASDAQ:GO) had its price target reduced by analysts at Wells Fargo & Company from $10.50 to $7.00 in a report released on Thursday,Benzinga reports. The firm currently has an “equal weight” rating on the stock. Wells Fargo & Company‘s target price points to a potential upside of 0.86% from the stock’s current price.

A number of other analysts have also recently weighed in on GO. Bank of America dropped their target price on shares of Grocery Outlet from $19.00 to $16.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. Morgan Stanley dropped their price objective on shares of Grocery Outlet from $11.00 to $7.00 and set an “equal weight” rating on the stock in a research note on Thursday. The Goldman Sachs Group decreased their target price on Grocery Outlet from $12.00 to $9.00 and set a “sell” rating for the company in a research note on Thursday, February 19th. Zacks Research cut Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 14th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Grocery Outlet in a report on Thursday, January 22nd. One equities research analyst has rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Reduce” and an average price target of $10.77.

Grocery Outlet Stock Down 21.0%

Shares of Grocery Outlet stock traded down $1.85 during trading on Thursday, reaching $6.94. The company had a trading volume of 7,841,833 shares, compared to its average volume of 2,545,879. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.25 and a current ratio of 1.30. Grocery Outlet has a fifty-two week low of $6.53 and a fifty-two week high of $19.41. The firm’s fifty day moving average is $9.79 and its 200-day moving average is $12.74. The company has a market cap of $681.09 million, a price-to-earnings ratio of -138.80, a price-to-earnings-growth ratio of 1.80 and a beta of 0.50.

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

Institutional Investors Weigh In On Grocery Outlet

A number of institutional investors and hedge funds have recently modified their holdings of GO. Royal Bank of Canada grew its holdings in shares of Grocery Outlet by 5.8% in the 1st quarter. Royal Bank of Canada now owns 122,565 shares of the company’s stock worth $1,713,000 after acquiring an additional 6,736 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Grocery Outlet by 14.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 357,856 shares of the company’s stock worth $5,003,000 after purchasing an additional 44,214 shares in the last quarter. AlphaQuest LLC raised its holdings in Grocery Outlet by 327.7% during the 2nd quarter. AlphaQuest LLC now owns 5,761 shares of the company’s stock worth $72,000 after buying an additional 4,414 shares during the period. Bank of Montreal Can lifted its stake in Grocery Outlet by 5.1% during the second quarter. Bank of Montreal Can now owns 16,525 shares of the company’s stock valued at $205,000 after buying an additional 803 shares in the last quarter. Finally, Bank of New York Mellon Corp lifted its stake in Grocery Outlet by 7.4% during the second quarter. Bank of New York Mellon Corp now owns 642,806 shares of the company’s stock valued at $7,984,000 after buying an additional 44,427 shares in the last quarter. Institutional investors and hedge funds own 99.87% of the company’s stock.

Key Headlines Impacting Grocery Outlet

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

• Positive Sentiment: Revenue growth and cash-flow improvement: FYQ4 revenue rose ~10.7% year‑over‑year and the company reported a meaningful increase in cash from operations (reported up ~83%), which provides liquidity while management executes its plan. Grocery Outlet Holding Corp. (GO) stock falls on Q4 2025 Earnings
• Neutral Sentiment: Company announced an Optimization Plan and retained Gordon Brothers to market retail leasehold opportunities — this is a portfolio/real‑estate move intended to improve long‑term profitability but signals ongoing operational challenges. Gordon Brothers Retained by Grocery Outlet to Market Retail Leasehold Opportunities as Part of Store Portfolio Optimization
• Neutral Sentiment: Earnings call and management commentary are available for detail — the transcript/highlights contain color on promotions, margin pressure and the one‑time items that affected GAAP results. Investors should review the call for guidance context. Grocery Outlet Holding Corp. (GO) Q4 2025 Earnings Call Transcript
• Negative Sentiment: FY2026 guidance missed expectations: management gave EPS guidance of $0.45–$0.55 (consensus ~$0.77) and revenue guidance below consensus — that downward guidance is a primary driver of the negative market reaction. Grocery Outlet FY2026 guidance (press materials)
• Negative Sentiment: Q4 results missed estimates: Q4 EPS missed consensus (reported $0.19 vs. est. $0.21) and revenue slightly missed; some GAAP metrics showed a large net loss on a reported basis, which amplified selling. Grocery Outlet Holding Corp. (GO) Q4 Earnings and Revenues Lag Estimates
• Negative Sentiment: Analysts slashed forecasts and cut price targets: multiple firms trimmed estimates and downgraded the stock following the results and weak guidance, increasing near‑term downside risk from reduced sell‑side support. These Analysts Slash Their Forecasts On Grocery Outlet Following Downbeat Q4 Results
• Negative Sentiment: Street commentary is skeptical about a near‑term turnaround: independent analysis highlights weakening comparable-store trends, heavier promotions and margin pressure, suggesting restoring value perception will be challenging. Grocery Outlet: No Turnaround In Sight

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.