Grocery Outlet (NASDAQ:GO) Price Target Lowered to $7.00 at DA Davidson

Grocery Outlet (NASDAQ:GO) had its price target dropped by DA Davidson from $11.00 to $7.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a “neutral” rating on the stock. DA Davidson’s target price indicates a potential upside of 10.76% from the stock’s current price.

Other equities research analysts have also issued research reports about the company. The Goldman Sachs Group dropped 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. Bank of America decreased their price objective on Grocery Outlet from $19.00 to $16.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. TD Cowen restated a “hold” rating on shares of Grocery Outlet in a research report on Thursday. Wells Fargo & Company cut their target price on Grocery Outlet from $10.50 to $7.00 and set an “equal weight” rating for the company in a research note on Thursday. Finally, Zacks Research downgraded shares of Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 14th. One investment analyst has rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Grocery Outlet has an average rating of “Reduce” and a consensus target price of $10.68.

Grocery Outlet Price Performance

Shares of GO traded down $2.47 during trading hours on Thursday, reaching $6.32. 14,453,331 shares of the company’s stock traded hands, compared to its average volume of 2,667,967. The firm’s 50 day simple moving average is $9.79 and its 200-day simple moving average is $12.74. The stock has a market cap of $620.24 million, a PE ratio of -126.40, a price-to-earnings-growth ratio of 1.80 and a beta of 0.50. 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 12 month low of $6.20 and a 12 month high of $19.41.

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

Institutional Investors Weigh In On Grocery Outlet

A number of large investors have recently made changes to their positions in GO. T. Rowe Price Investment Management Inc. grew its position in Grocery Outlet by 54.0% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 15,763,945 shares of the company’s stock valued at $159,216,000 after purchasing an additional 5,528,722 shares during the last quarter. Millennium Management LLC increased its position in shares of Grocery Outlet by 3,558.0% during the third quarter. Millennium Management LLC now owns 1,825,407 shares of the company’s stock valued at $29,298,000 after acquiring an additional 1,775,505 shares in the last quarter. UBS Group AG lifted its position in Grocery Outlet by 87.6% in the 4th quarter. UBS Group AG now owns 2,726,299 shares of the company’s stock valued at $27,536,000 after acquiring an additional 1,272,859 shares in the last quarter. Boston Partners increased its holdings in shares of Grocery Outlet by 219.7% in the 3rd quarter. Boston Partners now owns 1,462,633 shares of the company’s stock worth $23,475,000 after purchasing an additional 1,005,126 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of Grocery Outlet by 106.5% during the fourth quarter. Invesco Ltd. now owns 1,914,410 shares of the company’s stock valued at $19,336,000 after purchasing an additional 987,367 shares in the last quarter. 99.87% of the stock is currently owned by institutional investors.

Key Grocery Outlet News

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

• Positive Sentiment: The company announced a business optimization plan and engaged Gordon Brothers to market retail leasehold opportunities — a sign management is taking active steps to monetize underperforming locations and improve cash flow. Gordon Brothers Retained
• Positive Sentiment: Operating cash flow improved year-over-year (reported cash from operations rose), which can help liquidity while the company executes its optimization plan. QuiverQuant Cash Flow
• Neutral Sentiment: Top‑line growth: revenue was up ~10.7% y/y to $1.22B for Q4, but it narrowly missed Street revenue expectations — a mixed signal for demand. MarketBeat Q4 Summary
• Neutral Sentiment: Management hosted an earnings call and released slides/transcript outlining the quarter and the optimization plan; listeners should review management’s remediation timeline and cost savings targets. Earnings Call Transcript
• Negative Sentiment: Earnings and guidance miss: Q4 EPS was $0.19 vs. consensus $0.21 and FY‑2026 EPS guidance was cut to $0.45–$0.55 (well below the ~$0.77 consensus), which drove the immediate negative reaction. Zacks: Earnings Miss
• Negative Sentiment: Comparable-store sales weakened and management signaled increased promotions to drive traffic, which pressures margins and suggests the company is losing some “value perception” versus competitors. Seeking Alpha: Value Perception
• Negative Sentiment: Analyst reaction: multiple firms cut targets and ratings (Wells Fargo, Morgan Stanley, Jefferies, Telsey) and several analysts revised forecasts lower after the Q4 print, increasing selling pressure. Benzinga: Analyst Cuts
• Negative Sentiment: Severity of the reaction: third‑party data noted a large operating loss and a sharp net‑loss swing in 2025 (presentation/data require verification), and institutional selling was visible in recent filings — both increase near‑term downside risk. QuiverQuant: Loss & Selling

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.