Grocery Outlet Holding Corp. (NASDAQ:GO) Receives Consensus Rating of “Reduce” from Analysts

Grocery Outlet Holding Corp. (NASDAQ:GO) has been assigned an average recommendation of “Reduce” from the fourteen brokerages that are covering the company, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation and twelve have given a hold recommendation to the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $10.5909.

Several equities research analysts have issued reports on GO shares. Weiss Ratings raised shares of Grocery Outlet from a “sell (d-)” rating to a “sell (d)” rating in a research note on Thursday, August 13th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $9.00 price target on shares of Grocery Outlet in a research report on Thursday, August 13th. Telsey Advisory Group reissued a “market perform” rating on shares of Grocery Outlet in a research note on Thursday, August 13th. Morgan Stanley boosted their target price on Grocery Outlet from $7.00 to $11.00 and gave the stock an “equal weight” rating in a report on Thursday, August 13th. Finally, Wells Fargo & Company increased their price target on Grocery Outlet from $9.00 to $11.00 and gave the company an “equal weight” rating in a report on Thursday, August 13th.

Insider Transactions at Grocery Outlet

In other news, insider Paul Blaine Miller purchased 8,000 shares of the stock in a transaction dated Thursday, August 20th. The shares were purchased at an average price of $10.90 per share, with a total value of $87,200.00. Following the transaction, the insider owned 72,171 shares in the company, valued at $786,663.90. The trade was a 12.47% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In the last three months, insiders acquired 23,000 shares of company stock valued at $228,400. 5.60% of the stock is owned by corporate insiders.

Institutional Trading of Grocery Outlet

Several hedge funds have recently made changes to their positions in the company. Aster Capital Management DIFC Ltd raised its position in shares of Grocery Outlet by 1,030.4% during the 4th 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 during the period. Kestra Advisory Services LLC purchased a new position in Grocery Outlet in the fourth quarter worth approximately $35,000. Allworth Financial LP purchased a new position in Grocery Outlet in the second quarter worth approximately $40,000. Quantbot Technologies LP acquired a new stake in Grocery Outlet during the second quarter worth $46,000. Finally, Public Employees Retirement System of Ohio acquired a new stake in Grocery Outlet during the second quarter worth $58,000. Hedge funds and other institutional investors own 99.87% of the company’s stock.

Grocery Outlet Stock Performance

GO stock opened at $12.17 on Monday. Grocery Outlet has a 12-month low of $5.66 and a 12-month high of $18.79. The business’s 50-day moving average is $10.15 and its 200 day moving average is $8.78. The company has a current ratio of 1.29, a quick ratio of 0.30 and a debt-to-equity ratio of 0.60. The stock has a market cap of $1.21 billion, a price-to-earnings ratio of -3.14, a PEG ratio of 8.46 and a beta of 0.65.

Grocery Outlet (NASDAQ:GO) last released its earnings results on Wednesday, August 12th. The company reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.07. Grocery Outlet had a positive return on equity of 5.84% and a negative net margin of 8.04%.The business had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter last year, the business posted $0.23 earnings per share. The business’s quarterly revenue was up 1.1% compared to the same quarter last year. On average, sell-side analysts anticipate that Grocery Outlet will post 0.42 EPS for the current fiscal year.

Trending Headlines about Grocery Outlet

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

• Positive Sentiment: Higher full-year and long-term EPS forecasts: Zacks Research raised its FY2026 EPS estimate to $0.41 from $0.37 and its FY2028 estimate to $0.56 from $0.50. Estimates for Q1 2027 and Q1 2028 were also increased, suggesting analysts see potential for earnings improvement beyond the immediate outlook. Zacks Research estimate changes
• Positive Sentiment: Recent earnings beat supports sentiment: Grocery Outlet’s latest quarterly results exceeded consensus estimates for both earnings and revenue, with EPS of $0.20 versus expectations of $0.13 and revenue of $1.19 billion versus $1.17 billion. However, revenue growth was modest at 1.1% year over year. Grocery Outlet earnings report
• Neutral Sentiment: Options activity is drawing attention: Recent movements in the options market have prompted investors to watch GO for a potential increase in volatility or a sharp move. Options positioning can signal heightened expectations, but it does not establish the direction of the stock’s next move. Is the Options Market Predicting a Spike in Grocery Outlet Holding Stock?
• Negative Sentiment: Near-term earnings estimates were reduced: Zacks cut its Q3 2026 EPS forecast to $0.11 from $0.16 and its Q3 2027 estimate to $0.16 from $0.18. These reductions indicate continued uncertainty about Grocery Outlet’s near-term profitability.
• Negative Sentiment: Retail-sector caution remains a risk: Recent market commentary notes that retailers are facing consumer price anxiety and pressure on discretionary spending. Grocery Outlet’s negative net margin and low quick ratio add to the importance of sustained operational improvement.

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.