Grocery Outlet (NASDAQ:GO) Hits New 1-Year Low – Should You Sell?

Grocery Outlet Holding Corp. (NASDAQ:GO) reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $5.90 and last traded at $5.92, with a volume of 1553383 shares traded. The stock had previously closed at $6.59.

Wall Street Analyst Weigh In

GO has been the topic of a number of research reports. Deutsche Bank Aktiengesellschaft set a $11.00 price objective on Grocery Outlet in a research report on Thursday, January 8th. UBS Group reaffirmed a “neutral” rating and set a $11.50 target price on shares of Grocery Outlet in a research note on Thursday, December 18th. TD Cowen reiterated a “hold” rating on shares of Grocery Outlet in a report on Thursday. Zacks Research cut Grocery Outlet from a “strong-buy” rating to a “hold” rating in a report on Friday, November 14th. Finally, Morgan Stanley decreased their price objective on Grocery Outlet from $11.00 to $7.00 and set an “equal weight” rating for the company in a report on Thursday. Eleven research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Grocery Outlet currently has an average rating of “Reduce” and a consensus target price of $10.68.

Grocery Outlet Trading Down 13.1%

The company has a debt-to-equity ratio of 0.49, a current ratio of 1.37 and a quick ratio of 0.32. The company has a market cap of $562.42 million, a PE ratio of -2.50, a PEG ratio of 1.44 and a beta of 0.50. The firm’s 50 day moving average is $9.64 and its 200 day moving average is $12.54.

Grocery Outlet (NASDAQ:GO) last posted its quarterly earnings data on Wednesday, March 4th. The company reported $0.19 earnings per share (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 business had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the prior year, the business posted $0.15 EPS. Grocery Outlet’s quarterly revenue was up 10.7% on a year-over-year basis. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. On average, equities analysts anticipate that Grocery Outlet Holding Corp. will post 0.63 earnings per share for the current year.

Hedge Funds Weigh In On Grocery Outlet

Institutional investors have recently modified their holdings of the company. PNC Financial Services Group Inc. raised its stake in shares of Grocery Outlet by 32.3% during the second quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company’s stock worth $37,000 after acquiring an additional 719 shares in the last quarter. Thrivent Financial for Lutherans grew its position in shares of Grocery Outlet by 1.0% in the 2nd quarter. Thrivent Financial for Lutherans now owns 72,087 shares of the company’s stock worth $895,000 after buying an additional 739 shares during the last quarter. Bank of Montreal Can boosted its holdings in Grocery Outlet by 5.1% in the second quarter. Bank of Montreal Can now owns 16,525 shares of the company’s stock valued at $205,000 after acquiring an additional 803 shares in the last quarter. Amalgamated Bank increased its position in Grocery Outlet by 3.5% during the 3rd quarter. Amalgamated Bank now owns 28,875 shares of the company’s stock valued at $463,000 after purchasing an additional 967 shares during the period. Finally, Natixis Advisors LLC raised its holdings in Grocery Outlet by 5.5% in the 3rd quarter. Natixis Advisors LLC now owns 30,320 shares of the company’s stock worth $487,000 after purchasing an additional 1,591 shares in the last quarter. 99.87% of the stock is currently owned by institutional investors.

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.