Groupon (NASDAQ:GRPN) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “Groupon operates a website that offers daily discount deals. The company is benefiting from its new offering Groupon+. Management noted that integration with Mastercard is complete, which will positively drive top-line growth. Additionally, the company’s partnership with Grubhub and ongoing brand awareness programs are anticipated to boost revenues. The company’s policy of launching new products on a regular basis is a positive. Its strategy of offering special deals prior to important events, like Thanksgiving, enhances popularity. Moreover, streamlining activities are anticipated to improve gross margin. However, reduced international footprint will continue to hurt top-line growth at least in the near term. Moreover, intensifying competition is a significant headwind. Notably, shares of the company has underperformed the industry over the past one year.”
Several other equities research analysts have also weighed in on the stock. TheStreet upgraded shares of Groupon from a “d” rating to a “c-” rating in a report on Thursday, November 2nd. Citigroup increased their target price on shares of Groupon from $5.00 to $5.50 and gave the stock a “neutral” rating in a report on Thursday, November 2nd. Vetr lowered shares of Groupon from a “strong-buy” rating to a “strong sell” rating and set a $3.68 target price on the stock. in a report on Thursday, November 2nd. Piper Jaffray Companies reiterated a “buy” rating and issued a $6.25 target price on shares of Groupon in a report on Monday, November 20th. Finally, B. Riley increased their target price on shares of Groupon from $5.50 to $6.30 and gave the stock a “buy” rating in a report on Wednesday, October 18th. Six analysts have rated the stock with a sell rating, nine have issued a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $5.02.
Shares of Groupon (NASDAQ:GRPN) traded down $0.04 during midday trading on Tuesday, reaching $5.11. 2,395,929 shares of the company traded hands, compared to its average volume of 9,060,949. Groupon has a fifty-two week low of $2.90 and a fifty-two week high of $5.99. The firm has a market capitalization of $2,820.00, a price-to-earnings ratio of -34.07, a P/E/G ratio of 27.58 and a beta of 1.57. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.86 and a quick ratio of 0.86.
Groupon (NASDAQ:GRPN) last posted its earnings results on Wednesday, November 1st. The coupon company reported $0.01 earnings per share for the quarter. The company had revenue of $634.46 million for the quarter, compared to analyst estimates of $642.62 million. Groupon had a negative net margin of 2.97% and a negative return on equity of 1.47%. The business’s revenue for the quarter was down 7.6% compared to the same quarter last year. During the same period last year, the business posted ($0.01) earnings per share. equities research analysts anticipate that Groupon will post -0.02 earnings per share for the current fiscal year.
In related news, Director Eric P. Lefkofsky sold 1,500,000 shares of the firm’s stock in a transaction on Thursday, December 7th. The shares were sold at an average price of $5.77, for a total value of $8,655,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Brian Stevens sold 20,000 shares of the firm’s stock in a transaction on Friday, November 24th. The shares were sold at an average price of $5.71, for a total transaction of $114,200.00. Following the completion of the transaction, the chief accounting officer now directly owns 222,354 shares of the company’s stock, valued at approximately $1,269,641.34. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,545,000 shares of company stock worth $8,901,450. 23.40% of the stock is currently owned by company insiders.
Institutional investors have recently added to or reduced their stakes in the stock. New York State Teachers Retirement System bought a new position in Groupon in the third quarter valued at $122,000. Aperio Group LLC grew its position in Groupon by 4.6% in the second quarter. Aperio Group LLC now owns 28,844 shares of the coupon company’s stock valued at $111,000 after purchasing an additional 1,268 shares in the last quarter. Ameritas Investment Partners Inc. bought a new position in Groupon in the second quarter valued at $116,000. Prudential Financial Inc. grew its position in Groupon by 157.7% in the second quarter. Prudential Financial Inc. now owns 31,713 shares of the coupon company’s stock valued at $122,000 after purchasing an additional 19,408 shares in the last quarter. Finally, ProShare Advisors LLC bought a new position in Groupon in the second quarter valued at $122,000. 60.01% of the stock is owned by institutional investors and hedge funds.
Groupon Company Profile
Groupon, Inc operates online local commerce marketplaces around the world that connect merchants to consumers by offering goods and services at a discount. The Company operates through three segments: North America, which represents the United States and Canada; EMEA, which consists of Europe, and the Middle East and Africa, and the remainder of its international operations (Rest of World).
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