Zacks Research Lowers Earnings Estimates for Grocery Outlet

Grocery Outlet Holding Corp. (NASDAQ:GO) – Analysts at Zacks Research reduced their FY2024 EPS estimates for shares of Grocery Outlet in a research note issued to investors on Tuesday, November 19th. Zacks Research analyst S. Singh now expects that the company will post earnings of $0.63 per share for the year, down from their prior forecast of $0.67. The consensus estimate for Grocery Outlet’s current full-year earnings is $0.63 per share. Zacks Research also issued estimates for Grocery Outlet’s Q4 2024 earnings at $0.13 EPS, Q1 2025 earnings at $0.09 EPS, Q2 2025 earnings at $0.19 EPS, Q3 2025 earnings at $0.30 EPS, Q4 2025 earnings at $0.21 EPS, FY2025 earnings at $0.79 EPS, Q1 2026 earnings at $0.10 EPS, Q2 2026 earnings at $0.23 EPS, Q3 2026 earnings at $0.34 EPS and FY2026 earnings at $0.91 EPS.

Grocery Outlet (NASDAQ:GO) last released its earnings results on Tuesday, November 5th. The company reported $0.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.01. Grocery Outlet had a return on equity of 5.25% and a net margin of 1.20%. The firm had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.10 billion. During the same quarter last year, the firm posted $0.25 EPS. The company’s revenue was up 10.4% on a year-over-year basis.

A number of other analysts have also recently issued reports on the company. Bank of America cut Grocery Outlet from a “buy” rating to a “neutral” rating and lowered their price objective for the company from $29.00 to $17.00 in a research report on Wednesday, October 30th. Telsey Advisory Group dropped their price objective 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, November 6th. Roth Mkm lowered their target price on shares of Grocery Outlet from $20.00 to $16.00 and set a “neutral” rating on the stock in a research note on Wednesday, November 6th. Loop Capital began coverage on shares of Grocery Outlet in a research note on Thursday, October 17th. They set a “hold” rating and a $17.00 price target for the company. Finally, The Goldman Sachs Group lowered their price objective on Grocery Outlet from $17.00 to $15.00 and set a “sell” rating on the stock in a research note on Friday, November 1st. One research analyst has rated the stock with a sell rating, eight have issued a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, Grocery Outlet presently has an average rating of “Hold” and an average price target of $18.00.

Grocery Outlet Price Performance

NASDAQ:GO opened at $18.65 on Friday. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.46 and a quick ratio of 0.33. The stock has a market cap of $1.81 billion, a P/E ratio of 36.57, a PEG ratio of 4.65 and a beta of 0.13. The company has a fifty day moving average price of $16.76 and a 200 day moving average price of $19.15. Grocery Outlet has a one year low of $13.60 and a one year high of $29.80.

Insiders Place Their Bets

In other Grocery Outlet news, Director Eric J. Jr. Lindberg sold 200,095 shares of the stock in a transaction dated Thursday, September 19th. The stock was sold at an average price of $16.29, for a total transaction of $3,259,547.55. Following the completion of the transaction, the director now owns 70,938 shares in the company, valued at approximately $1,155,580.02. This represents a 73.83 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Erik D. Ragatz purchased 110,000 shares of the company’s stock in a transaction on Friday, November 15th. The stock was purchased at an average cost of $18.25 per share, for a total transaction of $2,007,500.00. Following the purchase, the director now directly owns 539,785 shares in the company, valued at approximately $9,851,076.25. This trade represents a 25.59 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of GO. Blue Trust Inc. increased its stake in Grocery Outlet by 76.6% in the 3rd quarter. Blue Trust Inc. now owns 1,665 shares of the company’s stock valued at $29,000 after buying an additional 722 shares during the last quarter. Innealta Capital LLC bought a new stake in shares of Grocery Outlet during the 2nd quarter worth approximately $38,000. Capital Performance Advisors LLP bought a new position in shares of Grocery Outlet in the third quarter valued at $32,000. Arizona State Retirement System increased its holdings in Grocery Outlet by 7.2% during the second quarter. Arizona State Retirement System now owns 27,779 shares of the company’s stock worth $614,000 after buying an additional 1,862 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD raised its position in Grocery Outlet by 5.9% during the first quarter. Price T Rowe Associates Inc. MD now owns 53,616 shares of the company’s stock worth $1,544,000 after acquiring an additional 2,968 shares in the last quarter. 99.87% of the stock is currently owned by institutional investors.

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.