Grocery Outlet (NASDAQ:GO) Downgraded by Telsey Advisory Group to Market Perform

Telsey Advisory Group lowered shares of Grocery Outlet (NASDAQ:GO) from an outperform rating to a market perform rating in a research note issued to investors on Thursday morning, MarketBeat reports. Telsey Advisory Group currently has $9.00 price objective on the stock, down from their previous price objective of $15.00.

Several other research analysts have also commented on the company. DA Davidson reissued a “neutral” rating and issued a $15.00 price target on shares of Grocery Outlet in a research report on Thursday, December 4th. Zacks Research downgraded shares of Grocery Outlet from a “strong-buy” rating to a “hold” rating in a report on Friday, November 14th. UBS Group restated a “neutral” rating and issued a $11.50 price target on shares of Grocery Outlet in a report on Thursday, December 18th. Weiss Ratings reiterated a “sell (d)” rating on shares of Grocery Outlet in a research note on Thursday, January 22nd. Finally, TD Cowen decreased their target price on shares of Grocery Outlet from $18.00 to $16.00 and set a “hold” rating for the company in a research report on Wednesday, November 5th. One analyst has rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Reduce” and an average target price of $10.68.

Grocery Outlet Price Performance

Shares of GO opened at $6.34 on Thursday. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.25 and a current ratio of 1.30. The company has a 50 day moving average price of $9.72 and a 200-day moving average price of $12.70. Grocery Outlet has a fifty-two week low of $6.20 and a fifty-two week high of $19.41. The stock has a market capitalization of $622.19 million, a PE ratio of -2.77, a PEG ratio of 1.79 and a beta of 0.50.

Grocery Outlet (NASDAQ:GO) last issued its quarterly earnings data 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 business had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.23 billion. Grocery Outlet had a negative net margin of 4.80% and a positive return on equity of 5.67%. The business’s quarterly revenue was up 10.7% compared to the same quarter last year. During the same period in the previous year, the business earned $0.15 earnings per share. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Equities analysts predict that Grocery Outlet will post 0.63 earnings per share for the current fiscal year.

Institutional Trading of Grocery Outlet

A number of institutional investors have recently bought and sold shares of the stock. Aster Capital Management DIFC Ltd increased its stake in Grocery Outlet by 1,030.4% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company’s stock valued at $26,000 after purchasing an additional 2,308 shares in the last quarter. Bayforest Capital Ltd acquired a new stake in shares of Grocery Outlet during the third quarter worth $29,000. Hantz Financial Services Inc. grew its holdings in shares of Grocery Outlet by 591.5% during the third quarter. Hantz Financial Services Inc. now owns 2,033 shares of the company’s stock valued at $33,000 after buying an additional 1,739 shares during the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of Grocery Outlet during the fourth quarter valued at $35,000. Finally, PNC Financial Services Group Inc. increased its position in shares of Grocery Outlet by 32.3% in the 2nd quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company’s stock valued at $37,000 after acquiring an additional 719 shares during the period. 99.87% of the stock is currently owned by institutional investors and hedge funds.

Grocery Outlet News Summary

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

• Positive Sentiment: Operational cash metrics improved year‑over‑year (operating cash flow and cash balance rose), which gives some near‑term liquidity cushion. QuiverQuant Q4 summary
• Positive Sentiment: Grocery Outlet retained Gordon Brothers to market leasehold opportunities as part of its portfolio optimization — a potential source of proceeds and faster footprint rationalization. Gordon Brothers press release
• Neutral Sentiment: Top-line still grew: total revenue was up ~10.7% YoY to about $1.22B and gross profit increased, but same‑store comps weakened — a mixed operational picture. Earnings release
• Negative Sentiment: Q4 results missed estimates (EPS $0.19 vs. $0.21 expected; revenue slightly below consensus) and management reported meaningful operating losses driven by non‑cash impairment and restructuring charges. Zacks earnings coverage
• Negative Sentiment: Large non‑cash charges: management disclosed ~ $113.8M impairment of long‑lived assets, $149.0M goodwill impairment and $45.9M restructuring charges, producing an operating loss and a big swing to net loss — a major driver of investor selling. Earnings release
• Negative Sentiment: FY‑2026 guidance was lowered well below Street expectations (EPS guidance of $0.45–$0.55 vs. ~ $0.77 consensus), signaling a slower recovery and pressuring valuation. Guidance slide deck
• Negative Sentiment: Management announced closure of 36 stores tied to the fiscal‑2025 net loss, increasing near‑term execution and comps risk. The Shelby Report
• Negative Sentiment: Multiple analysts cut price targets and downgraded the stock after the report (Morgan Stanley, Wells Fargo, DA Davidson, Jefferies, Telsey and others), removing buy conviction. Benzinga analyst roundup
• Negative Sentiment: Shareholder investigations were announced by law firms (Ademi LLP and Holzer & Holzer), citing potential misstatements about financials and disclosures — a legal overhang that raises uncertainty. Ademi LLP alert Holzer & Holzer alert
• Negative Sentiment: Institutional selling and at‑least one recent insider sale were flagged in filings/third‑party data, adding to downward pressure amid the negative news flow. QuiverQuant institutional data

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.