Wells Fargo & Company Lowers Grocery Outlet (NASDAQ:GO) Price Target to $7.00

Grocery Outlet (NASDAQ:GO) had its price target cut by analysts at Wells Fargo & Company from $10.50 to $7.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Wells Fargo & Company‘s price target would suggest a potential upside of 0.86% from the company’s current price.

GO has been the subject of a number of other research reports. UBS Group reissued a “neutral” rating and set a $11.50 target price on shares of Grocery Outlet in a research note on Thursday, December 18th. DA Davidson set a $8.00 price objective on Grocery Outlet in a research report on Thursday. Bank of America dropped their target price on Grocery Outlet from $19.00 to $16.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. Telsey Advisory Group lowered Grocery Outlet from an “outperform” rating to a “market perform” rating and reduced their price target for the company from $15.00 to $9.00 in a report on Thursday. Finally, The Goldman Sachs Group lowered their price target on Grocery Outlet from $12.00 to $9.00 and set a “sell” rating for the company in a research note on Thursday, February 19th. One investment analyst has rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Grocery Outlet presently has a consensus rating of “Reduce” and a consensus price target of $10.77.

Grocery Outlet Stock Down 21.0%

NASDAQ GO traded down $1.85 during trading on Thursday, reaching $6.94. 7,841,833 shares of the company’s stock were exchanged, compared to its average volume of 2,545,879. The company has a current ratio of 1.30, a quick ratio of 0.25 and a debt-to-equity ratio of 0.40. Grocery Outlet has a fifty-two week low of $6.53 and a fifty-two week high of $19.41. The company’s fifty day simple moving average is $9.79 and its 200-day simple moving average is $12.74. The firm has a market capitalization of $681.09 million, a PE ratio of -138.80, a P/E/G ratio of 1.80 and a beta of 0.50.

Grocery Outlet (NASDAQ:GO) last issued its earnings results on Wednesday, March 4th. The company reported $0.19 earnings per share for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.02). The business had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.23 billion. Grocery Outlet had a negative net margin of 0.10% and a positive return on equity of 5.86%. Grocery Outlet’s revenue for the quarter was up 10.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.15 EPS. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Sell-side analysts predict that Grocery Outlet will post 0.63 EPS for the current year.

Institutional Trading of Grocery Outlet

Institutional investors and hedge funds have recently modified their holdings of the company. Hussman Strategic Advisors Inc. acquired a new position in shares of Grocery Outlet in the third quarter valued at $2,696,000. Intech Investment Management LLC bought a new stake in Grocery Outlet in the 2nd quarter valued at $3,835,000. Eisler Capital Management Ltd. raised its stake in shares of Grocery Outlet by 178.5% in the 2nd quarter. Eisler Capital Management Ltd. now owns 227,101 shares of the company’s stock valued at $2,821,000 after buying an additional 145,554 shares in the last quarter. Rice Hall James & Associates LLC raised its position in Grocery Outlet by 165.1% in the third quarter. Rice Hall James & Associates LLC now owns 315,898 shares of the company’s stock worth $5,070,000 after purchasing an additional 196,737 shares in the last quarter. Finally, Heartland Advisors Inc. acquired a new position in shares of Grocery Outlet in the 3rd quarter worth approximately $4,448,000. 99.87% of the stock is currently owned by institutional investors and hedge funds.

Grocery Outlet News Roundup

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

• Positive Sentiment: Revenue growth and cash-flow improvement: FYQ4 revenue rose ~10.7% year‑over‑year and the company reported a meaningful increase in cash from operations (reported up ~83%), which provides liquidity while management executes its plan. Grocery Outlet Holding Corp. (GO) stock falls on Q4 2025 Earnings
• Neutral Sentiment: Company announced an Optimization Plan and retained Gordon Brothers to market retail leasehold opportunities — this is a portfolio/real‑estate move intended to improve long‑term profitability but signals ongoing operational challenges. Gordon Brothers Retained by Grocery Outlet to Market Retail Leasehold Opportunities as Part of Store Portfolio Optimization
• Neutral Sentiment: Earnings call and management commentary are available for detail — the transcript/highlights contain color on promotions, margin pressure and the one‑time items that affected GAAP results. Investors should review the call for guidance context. Grocery Outlet Holding Corp. (GO) Q4 2025 Earnings Call Transcript
• Negative Sentiment: FY2026 guidance missed expectations: management gave EPS guidance of $0.45–$0.55 (consensus ~$0.77) and revenue guidance below consensus — that downward guidance is a primary driver of the negative market reaction. Grocery Outlet FY2026 guidance (press materials)
• Negative Sentiment: Q4 results missed estimates: Q4 EPS missed consensus (reported $0.19 vs. est. $0.21) and revenue slightly missed; some GAAP metrics showed a large net loss on a reported basis, which amplified selling. Grocery Outlet Holding Corp. (GO) Q4 Earnings and Revenues Lag Estimates
• Negative Sentiment: Analysts slashed forecasts and cut price targets: multiple firms trimmed estimates and downgraded the stock following the results and weak guidance, increasing near‑term downside risk from reduced sell‑side support. These Analysts Slash Their Forecasts On Grocery Outlet Following Downbeat Q4 Results
• Negative Sentiment: Street commentary is skeptical about a near‑term turnaround: independent analysis highlights weakening comparable-store trends, heavier promotions and margin pressure, suggesting restoring value perception will be challenging. Grocery Outlet: No Turnaround In Sight

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.