Grocery Outlet (NASDAQ:GO) Stock Price Up 14.8% Following Better-Than-Expected Earnings

Grocery Outlet Holding Corp. (NASDAQ:GO)’s stock price shot up 14.8% on Wednesday following a stronger than expected earnings report. The stock traded as high as $16.74 and last traded at $16.72. 1,681,090 shares traded hands during mid-day trading, a decline of 7% from the average session volume of 1,802,749 shares. The stock had previously closed at $14.56.

The company reported $0.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.01. The firm had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $1.10 billion. Grocery Outlet had a return on equity of 5.18% and a net margin of 1.30%. The company’s revenue for the quarter was up 10.4% on a year-over-year basis. During the same quarter last year, the company posted $0.25 EPS.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Roth Capital raised shares of Grocery Outlet from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, August 7th. Melius Research began coverage on shares of Grocery Outlet in a research report on Monday, September 23rd. They set a “hold” rating and a $17.00 price target for the company. TD Cowen downgraded Grocery Outlet from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $25.00 to $16.00 in a report on Wednesday. Deutsche Bank Aktiengesellschaft dropped their target price on Grocery Outlet from $29.00 to $26.00 and set a “buy” rating for the company in a report on Wednesday. Finally, Wells Fargo & Company decreased their price target on Grocery Outlet from $26.00 to $23.00 and set an “overweight” rating on the stock in a research note on Wednesday. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating, two have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $18.17.

Insider Buying and Selling

In related news, Director Eric J. Jr. Lindberg sold 200,095 shares of the company’s stock in a transaction that occurred on Thursday, September 19th. The stock was sold at an average price of $16.29, for a total value of $3,259,547.55. Following the sale, the director now owns 70,938 shares in the company, valued at $1,155,580.02. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. In other news, Director Eric J. Jr. Lindberg sold 100,000 shares of the stock in a transaction that occurred on Wednesday, August 21st. The shares were sold at an average price of $18.44, for a total transaction of $1,844,000.00. Following the sale, the director now owns 70,938 shares in the company, valued at $1,308,096.72. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Eric J. Jr. Lindberg sold 200,095 shares of the firm’s stock in a transaction that occurred on Thursday, September 19th. The shares were sold at an average price of $16.29, for a total transaction of $3,259,547.55. Following the sale, the director now directly owns 70,938 shares of the company’s stock, valued at $1,155,580.02. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 500,095 shares of company stock valued at $8,876,548 over the last quarter. Corporate insiders own 4.50% of the company’s stock.

Hedge Funds Weigh In On Grocery Outlet

Hedge funds have recently bought and sold shares of the business. Capital World Investors lifted its holdings in shares of Grocery Outlet by 281.4% during the 1st quarter. Capital World Investors now owns 3,579,683 shares of the company’s stock valued at $103,023,000 after buying an additional 2,641,016 shares during the period. Millennium Management LLC lifted its holdings in Grocery Outlet by 677.6% in the second quarter. Millennium Management LLC now owns 1,981,558 shares of the company’s stock valued at $43,832,000 after acquiring an additional 1,726,741 shares during the period. CWM LLC lifted its holdings in Grocery Outlet by 505.6% in the third quarter. CWM LLC now owns 51,933 shares of the company’s stock valued at $911,000 after acquiring an additional 43,358 shares during the period. Bleakley Financial Group LLC purchased a new position in Grocery Outlet in the first quarter worth about $217,000. Finally, Thrivent Financial for Lutherans grew its stake in shares of Grocery Outlet by 137.5% during the 2nd quarter. Thrivent Financial for Lutherans now owns 197,916 shares of the company’s stock valued at $4,378,000 after purchasing an additional 114,576 shares during the period. Hedge funds and other institutional investors own 99.87% of the company’s stock.

Grocery Outlet Stock Up 10.6 %

The company’s 50-day moving average price is $16.66 and its 200 day moving average price is $19.75. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.29 and a current ratio of 1.29. The stock has a market cap of $1.58 billion, a PE ratio of 29.83, a price-to-earnings-growth ratio of 3.42 and a beta of 0.13.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products.