Grocery Outlet (NASDAQ:GO) Shares Down 4.7% – Should You Sell?

Grocery Outlet Holding Corp. (NASDAQ:GO) shares fell 4.7% during trading on Thursday . The stock traded as low as $11.65 and last traded at $11.64. 717,381 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 3,121,413 shares. The stock had previously closed at $12.21.

Key Grocery Outlet News

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.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on GO shares. Weiss Ratings upgraded Grocery Outlet from a “sell (d-)” rating to a “sell (d)” rating in a research note on Thursday, August 13th. Telsey Advisory Group restated a “market perform” rating on shares of Grocery Outlet in a report on Thursday, August 13th. Roth Capital reaffirmed a “neutral” rating and issued a $10.00 price objective on shares of Grocery Outlet in a research report on Thursday, August 13th. DA Davidson boosted their price objective on shares of Grocery Outlet from $9.00 to $12.00 and gave the stock a “neutral” rating in a research note on Thursday, August 13th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $9.00 target price on shares of Grocery Outlet in a research report on Thursday, August 13th. Twelve analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $10.59.

Grocery Outlet Stock Up 4.0%

The company has a 50-day moving average of $10.15 and a 200-day moving average of $8.79. The company has a market capitalization of $1.21 billion, a price-to-earnings ratio of -3.14, a price-to-earnings-growth ratio of 8.13 and a beta of 0.65. The company has a current ratio of 1.29, a quick ratio of 0.30 and a debt-to-equity ratio of 0.60.

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

Insider Activity at Grocery Outlet

In related news, insider Paul Blaine Miller bought 10,000 shares of the stock in a transaction that occurred on Thursday, June 18th. The stock was bought at an average cost of $9.37 per share, for a total transaction of $93,700.00. Following the purchase, the insider directly owned 59,171 shares of the company’s stock, valued at approximately $554,432.27. This trade represents a 20.34% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Over the last ninety days, insiders have purchased 23,000 shares of company stock valued at $228,400. Company insiders own 5.60% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in GO. UBS Group AG grew its holdings in shares of Grocery Outlet by 87.6% during the fourth quarter. UBS Group AG now owns 2,726,299 shares of the company’s stock valued at $27,536,000 after buying an additional 1,272,859 shares during the last quarter. Vanguard Group Inc. lifted its position in Grocery Outlet by 1.9% during the 4th quarter. Vanguard Group Inc. now owns 11,255,936 shares of the company’s stock worth $113,685,000 after acquiring an additional 213,325 shares during the period. CenterBook Partners LP grew its stake in Grocery Outlet by 262.2% during the 4th quarter. CenterBook Partners LP now owns 645,159 shares of the company’s stock valued at $6,516,000 after purchasing an additional 467,019 shares during the last quarter. Bank of America Corp DE grew its stake in Grocery Outlet by 31.3% during the 1st quarter. Bank of America Corp DE now owns 1,083,541 shares of the company’s stock valued at $7,639,000 after purchasing an additional 258,292 shares during the last quarter. Finally, Clearbridge Investments LLC grew its stake in Grocery Outlet by 6.6% during the 4th quarter. Clearbridge Investments LLC now owns 2,816,721 shares of the company’s stock valued at $28,449,000 after purchasing an additional 173,308 shares during the last quarter. Hedge funds and other institutional investors own 99.87% of the company’s stock.

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.