Grab (NASDAQ:GRAB) Shares Down 5.8% – Should You Sell?

Grab Holdings Limited (NASDAQ:GRAB) traded down 5.8% on Monday . The company traded as low as $3.73 and last traded at $3.6750. Approximately 13,140,860 shares changed hands during trading, a decline of 74% from the average daily volume of 50,961,258 shares. The stock had previously closed at $3.90.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Zacks Research upgraded shares of Grab from a “strong sell” rating to a “hold” rating in a report on Tuesday, June 2nd. China Renaissance upgraded shares of Grab from a “hold” rating to a “buy” rating and set a $5.00 target price for the company in a research note on Wednesday, May 6th. Mizuho dropped their price target on Grab from $7.00 to $6.00 and set an “outperform” rating on the stock in a research note on Tuesday, May 5th. JPMorgan Chase & Co. lowered their price target on Grab from $5.90 to $5.80 and set an “overweight” rating for the company in a research report on Tuesday, May 5th. Finally, Morgan Stanley reaffirmed an “overweight” rating and set a $6.25 target price on shares of Grab in a report on Tuesday, June 30th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Grab currently has an average rating of “Moderate Buy” and a consensus target price of $6.23.

Grab Stock Performance

The firm has a market capitalization of $16.10 billion, a price-to-earnings ratio of 393.39, a PEG ratio of 1.52 and a beta of 0.87. The firm has a 50 day moving average price of $3.60 and a 200-day moving average price of $4.03. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.67 and a quick ratio of 1.65.

Grab (NASDAQ:GRAB) last issued its earnings results on Tuesday, May 5th. The company reported ($0.01) earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.03). The business had revenue of $955.00 million for the quarter, compared to analyst estimates of $921.71 million. Grab had a return on equity of 5.79% and a net margin of 10.67%. As a group, sell-side analysts expect that Grab Holdings Limited will post 0.1 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Chin Yin Ong sold 48,000 shares of the business’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $3.55, for a total transaction of $170,400.00. Following the sale, the insider owned 3,781,306 shares of the company’s stock, valued at approximately $13,423,636.30. The trade was a 1.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Peter Henry Oey sold 50,000 shares of Grab stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $3.92, for a total value of $196,000.00. Following the transaction, the chief financial officer directly owned 7,050,165 shares of the company’s stock, valued at approximately $27,636,646.80. This represents a 0.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 1,766,093 shares of company stock worth $6,384,921. 3.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Invesco Ltd. grew its holdings in shares of Grab by 24.9% during the 3rd quarter. Invesco Ltd. now owns 79,797,848 shares of the company’s stock worth $480,383,000 after purchasing an additional 15,916,063 shares during the period. Marshall Wace LLP grew its stake in Grab by 49.2% during the fourth quarter. Marshall Wace LLP now owns 72,453,397 shares of the company’s stock worth $361,542,000 after buying an additional 23,891,108 shares during the period. JPMorgan Chase & Co. increased its position in shares of Grab by 1.6% in the fourth quarter. JPMorgan Chase & Co. now owns 56,669,014 shares of the company’s stock worth $282,778,000 after acquiring an additional 878,966 shares in the last quarter. Assenagon Asset Management S.A. increased its position in shares of Grab by 58.0% in the first quarter. Assenagon Asset Management S.A. now owns 54,906,371 shares of the company’s stock worth $200,957,000 after acquiring an additional 20,152,535 shares in the last quarter. Finally, State Street Corp lifted its holdings in shares of Grab by 5.7% during the 4th quarter. State Street Corp now owns 45,938,139 shares of the company’s stock valued at $229,231,000 after acquiring an additional 2,466,572 shares in the last quarter. 55.52% of the stock is owned by hedge funds and other institutional investors.

Grab Company Profile

Grab Holdings Inc is a Singapore-based technology company that operates a consumer-facing “super app” across Southeast Asia offering services spanning ride-hailing, food and package delivery, and digital payments. Its platform connects consumers, drivers, merchants and delivery partners through mobile applications and supports on-demand mobility (taxi and private car), last-mile logistics, and on-demand food delivery under brands such as GrabFood and GrabExpress. The company has also developed a merchant-facing ecosystem that supports ordering, payment acceptance and loyalty functions.

Beyond transportation and delivery, Grab has expanded into financial services through Grab Financial Group, which provides digital payments via GrabPay, consumer lending, insurance distribution and small-business financial solutions.