Grocery Outlet Holding Corp. (NASDAQ:GO) Given Average Recommendation of “Reduce” by Brokerages

Grocery Outlet Holding Corp. (NASDAQ:GO) has earned an average recommendation of “Reduce” from the fourteen brokerages that are currently covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating and twelve have given a hold rating to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $10.5909.

Several research firms recently weighed in on GO. Weiss Ratings upgraded shares of Grocery Outlet from a “sell (d-)” rating to a “sell (d)” rating in a report on Thursday, August 13th. Wells Fargo & Company lifted their price objective on Grocery Outlet from $9.00 to $11.00 and gave the company an “equal weight” rating in a research note on Thursday, August 13th. Morgan Stanley boosted their price objective on Grocery Outlet from $7.00 to $11.00 and gave the company an “equal weight” rating in a report on Thursday, August 13th. TD Cowen reissued a “hold” rating on shares of Grocery Outlet in a research note on Tuesday, August 18th. Finally, DA Davidson raised their target price on Grocery Outlet from $9.00 to $12.00 and gave the company a “neutral” rating in a report on Thursday, August 13th.

Grocery Outlet News Summary

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 Stock Performance

Shares of GO stock opened at $12.17 on Monday. Grocery Outlet has a 1-year low of $5.66 and a 1-year high of $18.79. The firm has a market cap of $1.21 billion, a PE ratio of -3.14, a price-to-earnings-growth ratio of 8.46 and a beta of 0.65. The company has a 50-day moving average of $10.15 and a two-hundred day moving average of $8.78. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.29 and a quick ratio of 0.30.

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

Insider Activity

In other Grocery Outlet news, insider Paul Blaine Miller acquired 8,000 shares of the stock in a transaction dated Thursday, August 20th. The stock was acquired at an average price of $10.90 per share, with a total value of $87,200.00. Following the completion of the purchase, the insider owned 72,171 shares in the company, valued at $786,663.90. This trade represents a 12.47% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders have bought a total of 23,000 shares of company stock worth $228,400 over the last 90 days. 5.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Grocery Outlet

A number of hedge funds have recently added to or reduced their stakes in GO. Royal Bank of Canada grew its stake in shares of Grocery Outlet by 5.8% in the first quarter. Royal Bank of Canada now owns 122,565 shares of the company’s stock worth $1,713,000 after acquiring an additional 6,736 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Grocery Outlet by 14.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 357,856 shares of the company’s stock valued at $5,003,000 after acquiring an additional 44,214 shares in the last quarter. Creative Planning boosted its holdings in Grocery Outlet by 25.4% in the second quarter. Creative Planning now owns 16,104 shares of the company’s stock valued at $200,000 after purchasing an additional 3,263 shares during the period. JPMorgan Chase & Co. grew its stake in Grocery Outlet by 13.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 220,432 shares of the company’s stock worth $2,738,000 after purchasing an additional 26,725 shares in the last quarter. Finally, Franklin Resources Inc. acquired a new position in Grocery Outlet during the 2nd quarter worth $149,000. 99.87% of the stock is currently owned by institutional investors and hedge funds.

About Grocery Outlet

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.