Grocery Outlet Holding Corp. (NASDAQ:GO) Given Consensus Recommendation of “Reduce” by Analysts

Grocery Outlet Holding Corp. (NASDAQ:GO) has earned a consensus recommendation of “Reduce” from the thirteen brokerages that are presently covering the company, Marketbeat reports. Two analysts have rated the stock with a sell recommendation and eleven have issued a hold recommendation on the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $10.6818.

Several brokerages have recently commented on GO. Wells Fargo & Company reduced their target price on shares of Grocery Outlet from $10.50 to $7.00 and set an “equal weight” rating on the stock in a research note on Thursday, March 5th. Morgan Stanley decreased 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, March 5th. Deutsche Bank Aktiengesellschaft set a $11.00 price objective on shares of Grocery Outlet in a report on Thursday, January 8th. Telsey Advisory Group downgraded Grocery Outlet from an “outperform” rating to a “market perform” rating and reduced their target price for the stock from $15.00 to $9.00 in a report on Thursday, March 5th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Grocery Outlet in a report on Thursday, January 22nd.

Grocery Outlet News Roundup

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

• Positive Sentiment: Company directors bought sizable blocks of stock in the last few days, which can be read as a signal of insider confidence: Director Erik Ragatz purchased 125,000 shares at an average $6.00. Insider Buying: Grocery Outlet (NASDAQ:GO) Director Purchases 125,000 Shares of Stock
• Positive Sentiment: Additional insider buys this week: Director Carey Jaros bought 40,000 shares at about $6.26 and director Jeffrey York bought 120,000 shares at about $5.82 — more insider accumulation that likely supported the intraday rally. Director Purchases / Insider Filings
• Neutral Sentiment: Large institutional holders remain dominant (T. Rowe Price, Vanguard among the largest owners), which can stabilize trading but also concentrate downside if institutions sell. See the MarketBeat company page for institutional holdings and analyst consensus. Grocery Outlet (GO) — MarketBeat
• Negative Sentiment: Multiple law firms (Holzer & Holzer, Pomerantz, Glancy Prongay Wolke & Rotter, The Law Offices of Frank R. Cruz) have launched securities‑fraud investigations tied to the company’s March 4 quarter results; such probes increase legal uncertainty and headline risk. Holzer & Holzer Investigation Notice
• Negative Sentiment: The company reported a large operating loss for the fiscal year that included significant non‑cash charges (long‑lived asset impairments, restructuring charges and goodwill impairment). Those items materially depressed earnings and sparked the investigations and the prior selloff. Details on Impairments (Holzer & Holzer)
• Negative Sentiment: Analysts have trimmed ratings and price targets in recent weeks (several “hold/market perform” or “sell” views and lower targets), reinforcing downside pressure until clarity on results and legal exposure improves. Analyst notes and consensus (MarketBeat)

Insider Activity at Grocery Outlet

In other news, EVP Steven K. Wilson sold 5,141 shares of the firm’s stock in a transaction on Monday, March 9th. The stock was sold at an average price of $5.84, for a total value of $30,023.44. Following the completion of the sale, the executive vice president directly owned 124,892 shares in the company, valued at approximately $729,369.28. This trade represents a 3.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Christopher M. Miller sold 5,024 shares of Grocery Outlet stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $5.84, for a total value of $29,340.16. Following the completion of the transaction, the executive vice president directly owned 38,675 shares of the company’s stock, valued at $225,862. This represents a 11.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have purchased 301,000 shares of company stock valued at $1,802,160 and have sold 81,347 shares valued at $475,066. Company insiders own 4.50% of the company’s stock.

Hedge Funds Weigh In On Grocery Outlet

A number of large investors have recently modified their holdings of GO. Hussman Strategic Advisors Inc. acquired a new stake in shares of Grocery Outlet in the 3rd quarter valued at $2,696,000. Intech Investment Management LLC acquired a new position in shares of Grocery Outlet during the second quarter valued at $3,835,000. Eisler Capital Management Ltd. lifted its stake in shares of Grocery Outlet by 178.5% during the second quarter. Eisler Capital Management Ltd. now owns 227,101 shares of the company’s stock valued at $2,821,000 after acquiring an additional 145,554 shares during the period. Rice Hall James & Associates LLC boosted its holdings in Grocery Outlet by 165.1% in the third quarter. Rice Hall James & Associates LLC now owns 315,898 shares of the company’s stock valued at $5,070,000 after acquiring an additional 196,737 shares during the last quarter. Finally, Heartland Advisors Inc. acquired a new stake in Grocery Outlet in the third quarter worth about $4,448,000. 99.87% of the stock is currently owned by institutional investors and hedge funds.

Grocery Outlet Trading Up 5.3%

Shares of GO opened at $6.40 on Monday. The company has a current ratio of 1.37, a quick ratio of 0.32 and a debt-to-equity ratio of 0.49. The stock has a market cap of $628.16 million, a PE ratio of -2.79, a PEG ratio of 1.84 and a beta of 0.50. Grocery Outlet has a 1 year low of $5.66 and a 1 year high of $19.41. The stock has a 50 day simple moving average of $9.25 and a 200-day simple moving average of $12.11.

Grocery Outlet (NASDAQ:GO) last announced its quarterly earnings results on Wednesday, March 4th. The company reported $0.19 EPS for the quarter, missing the consensus estimate of $0.21 by ($0.02). Grocery Outlet had a negative net margin of 4.80% and a positive return on equity of 5.93%. The company had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same period in the prior year, the firm earned $0.15 EPS. Grocery Outlet’s quarterly revenue 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. On average, sell-side analysts predict that Grocery Outlet will post 0.63 EPS for the current fiscal year.

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.