Grocery Outlet (NASDAQ:GO) Price Target Cut to $7.00 by Analysts at DA Davidson

Grocery Outlet (NASDAQ:GO) had its price target reduced by DA Davidson from $11.00 to $7.00 in a research report sent to investors on Thursday morning,Benzinga reports. DA Davidson currently has a neutral rating on the stock.

Other analysts have also issued reports about the company. TD Cowen reiterated a “hold” rating on shares of Grocery Outlet in a report on Thursday. Bank of America decreased their price objective on shares of Grocery Outlet from $19.00 to $16.00 and set a “neutral” rating for the company in a report on Wednesday, November 5th. The Goldman Sachs Group dropped their price target on Grocery Outlet from $12.00 to $9.00 and set a “sell” rating on the stock in a research report on Thursday, February 19th. Jefferies Financial Group reiterated a “hold” rating and issued a $7.00 target price (down from $18.00) on shares of Grocery Outlet in a research note on Thursday. Finally, Telsey Advisory Group cut Grocery Outlet from an “outperform” rating to a “market perform” rating and lowered their price objective for the company from $15.00 to $9.00 in a research report on Thursday. One equities research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Grocery Outlet currently has a consensus rating of “Reduce” and a consensus target price of $10.68.

Grocery Outlet Trading Down 27.9%

NASDAQ:GO opened at $6.34 on Thursday. Grocery Outlet has a 12-month low of $6.20 and a 12-month high of $19.41. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.30 and a quick ratio of 0.25. The business has a 50 day simple moving average of $9.72 and a 200 day simple moving average of $12.70. The firm has a market capitalization of $622.19 million, a P/E ratio of -2.77, a P/E/G ratio of 1.79 and a beta of 0.50.

Grocery Outlet (NASDAQ:GO) last released its earnings results on Wednesday, March 4th. The company reported $0.19 earnings per share for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.02). The firm had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.23 billion. Grocery Outlet had a positive return on equity of 5.67% and a negative net margin of 4.80%.The business’s revenue for the quarter was up 10.7% on a year-over-year basis. During the same quarter last year, the company earned $0.15 earnings per share. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Equities research analysts predict that Grocery Outlet will post 0.63 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in GO. Bayforest Capital Ltd acquired a new position in shares of Grocery Outlet during the third quarter worth approximately $29,000. Hantz Financial Services Inc. grew its position in shares of Grocery Outlet by 591.5% during the 3rd quarter. Hantz Financial Services Inc. now owns 2,033 shares of the company’s stock worth $33,000 after buying an additional 1,739 shares during the period. Aster Capital Management DIFC Ltd boosted its stake in Grocery Outlet by 1,030.4% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company’s stock valued at $26,000 after acquiring an additional 2,308 shares during the last quarter. PNC Financial Services Group Inc. raised its position in shares of Grocery Outlet by 32.3% during 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 last quarter. Finally, Kestra Advisory Services LLC acquired a new stake in shares of Grocery Outlet during the fourth quarter worth $35,000. Institutional investors and hedge funds own 99.87% of the company’s stock.

Key Stories Impacting Grocery Outlet

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.