Grocery Outlet (NASDAQ:GO) Shares Gap Up on Insider Buying Activity

Shares of Grocery Outlet Holding Corp. (NASDAQ:GO) gapped up prior to trading on Tuesday after an insider bought additional shares in the company. The stock had previously closed at $9.36, but opened at $9.67. Grocery Outlet shares last traded at $9.3960, with a volume of 336,541 shares trading hands.

Specifically, insider Paul Blaine Miller acquired 10,000 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The shares were bought at an average cost of $9.37 per share, with a total value of $93,700.00. Following the completion of the acquisition, the insider directly owned 59,171 shares in the company, valued at $554,432.27. This represents a 20.34% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on GO. Jefferies Financial Group reaffirmed a “hold” rating and set a $7.00 target price (down from $18.00) on shares of Grocery Outlet in a research report on Thursday, March 5th. Craig Hallum lowered Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research report on Thursday, March 5th. Telsey Advisory Group cut Grocery Outlet from an “outperform” rating to a “market perform” rating and decreased their price objective for the stock from $15.00 to $9.00 in a research note on Thursday, March 5th. DA Davidson lifted their target price on Grocery Outlet from $7.00 to $9.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. Finally, Weiss Ratings upgraded shares of Grocery Outlet from a “sell (d-)” rating to a “sell (d)” rating in a report on Friday, June 5th. Eleven research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $10.32.

Grocery Outlet Stock Performance

The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.27 and a current ratio of 1.28. The stock has a market cap of $932.82 million, a PE ratio of -2.43, a price-to-earnings-growth ratio of 14.33 and a beta of 0.67. The firm has a fifty day moving average price of $8.21 and a 200 day moving average price of $8.75.

Grocery Outlet (NASDAQ:GO) last announced its earnings results on Wednesday, May 13th. The company reported $0.05 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.03. Grocery Outlet had a positive return on equity of 5.69% and a negative net margin of 8.08%.The firm had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.15 billion. During the same period in the previous year, the business earned $0.13 EPS. The firm’s revenue for the quarter was up 3.6% on a year-over-year basis. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Research analysts forecast that Grocery Outlet Holding Corp. will post 0.38 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Grocery Outlet

Several hedge funds have recently modified their holdings of the stock. Militia Capital Management LLC purchased a new position in shares of Grocery Outlet in the 1st quarter valued at approximately $590,000. Bank of America Corp DE grew its position 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 worth $7,639,000 after purchasing an additional 258,292 shares during the last quarter. Amundi increased its stake in Grocery Outlet by 19.9% during the 1st quarter. Amundi now owns 15,371 shares of the company’s stock valued at $108,000 after purchasing an additional 2,556 shares in the last quarter. California State Teachers Retirement System increased its stake in Grocery Outlet by 74.6% during the 1st quarter. California State Teachers Retirement System now owns 157,688 shares of the company’s stock valued at $1,112,000 after purchasing an additional 67,379 shares in the last quarter. Finally, Quantinno Capital Management LP raised its holdings in shares of Grocery Outlet by 217.0% in the first quarter. Quantinno Capital Management LP now owns 429,869 shares of the company’s stock worth $3,031,000 after buying an additional 294,280 shares during the last quarter. Institutional investors and hedge funds 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.