Grocery Outlet (NASDAQ:GO) Shares Up 14.8% on Strong Earnings

Grocery Outlet Holding Corp. (NASDAQ:GO)’s stock price rose 14.8% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $16.74 and last traded at $16.72. Approximately 1,681,090 shares changed hands during trading, a decline of 7% from the average daily 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, topping the consensus estimate of $0.27 by $0.01. Grocery Outlet had a return on equity of 5.18% and a net margin of 1.30%. The firm had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.10 billion. During the same quarter last year, the business posted $0.25 earnings per share. The firm’s revenue was up 10.4% on a year-over-year basis.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the stock. Telsey Advisory Group cut their target price on shares of Grocery Outlet from $19.00 to $18.00 and set a “market perform” rating for the company in a research note on Wednesday. Deutsche Bank Aktiengesellschaft cut their price objective on Grocery Outlet from $29.00 to $26.00 and set a “buy” rating for the company in a research report on Wednesday. Loop Capital assumed coverage on Grocery Outlet in a research report on Thursday, October 17th. They issued a “hold” rating and a $17.00 target price on the stock. Roth Capital upgraded Grocery Outlet from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 7th. Finally, UBS Group reduced their price objective on Grocery Outlet from $21.00 to $16.00 and set a “neutral” rating on the stock in a research note on Wednesday. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $18.17.

Insider Activity

In other Grocery Outlet news, Director Eric J. Jr. Lindberg sold 100,000 shares of the business’s stock in a transaction that occurred on Monday, August 19th. The stock was sold at an average price of $18.83, for a total transaction of $1,883,000.00. Following the completion of the transaction, the director now owns 70,938 shares in the company, valued at $1,335,762.54. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. In related news, Director Eric J. Jr. Lindberg sold 200,095 shares of the firm’s stock in a transaction dated Thursday, September 19th. The shares were sold at an average price of $16.29, for a total value of $3,259,547.55. Following the transaction, the director now 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 transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Eric J. Jr. Lindberg sold 100,000 shares of the company’s stock in a transaction dated Monday, August 19th. The stock was sold at an average price of $18.83, for a total transaction of $1,883,000.00. Following the completion of the transaction, the director now owns 70,938 shares in the company, valued at $1,335,762.54. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 500,095 shares of company stock valued at $8,876,548. 4.50% of the stock is currently owned by company insiders.

Institutional Trading of Grocery Outlet

A number of large investors have recently modified their holdings of the company. Blue Trust Inc. lifted its stake in Grocery Outlet by 76.6% in the third quarter. Blue Trust Inc. now owns 1,665 shares of the company’s stock worth $29,000 after acquiring an additional 722 shares during the period. Allspring Global Investments Holdings LLC bought a new position in shares of Grocery Outlet during the first quarter valued at approximately $25,000. Texas Permanent School Fund Corp increased its holdings in Grocery Outlet by 1.3% during the first quarter. Texas Permanent School Fund Corp now owns 86,879 shares of the company’s stock valued at $2,500,000 after buying an additional 1,126 shares during the period. Swiss National Bank increased its holdings in Grocery Outlet by 0.6% during the first quarter. Swiss National Bank now owns 186,100 shares of the company’s stock valued at $5,356,000 after buying an additional 1,200 shares during the period. Finally, Innealta Capital LLC bought a new position in Grocery Outlet in the second quarter worth approximately $38,000. Hedge funds and other institutional investors own 99.87% of the company’s stock.

Grocery Outlet Stock Performance

The company has a debt-to-equity ratio of 0.31, a current ratio of 1.29 and a quick ratio of 0.29. The company 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. The business has a fifty day simple moving average of $16.66 and a two-hundred day simple moving average of $19.75.

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.