Grocery Outlet (NASDAQ:GO) Price Target Lowered to $7.00 at Wells Fargo & Company

Grocery Outlet (NASDAQ:GO) had its price target cut by Wells Fargo & Company from $10.50 to $7.00 in a report issued on Thursday morning,Benzinga reports. They currently have an equal weight rating on the stock.

GO has been the subject of several other research reports. TD Cowen reissued a “hold” rating on shares of Grocery Outlet in a research note on Thursday. UBS Group reissued a “neutral” rating and set a $11.50 target price on shares of Grocery Outlet in a research report on Thursday, December 18th. Morgan Stanley dropped their price target on shares of Grocery Outlet from $11.00 to $7.00 and set an “equal weight” rating on the stock in a research 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 research report on Wednesday, November 5th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Grocery Outlet in a research note on Thursday, January 22nd. One investment analyst has rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Grocery Outlet has an average rating of “Reduce” and a consensus price target of $10.68.

Grocery Outlet Trading Down 27.9%

GO opened at $6.34 on Thursday. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.30 and a quick ratio of 0.25. Grocery Outlet has a fifty-two week low of $6.20 and a fifty-two week high of $19.41. The company’s 50 day moving average price is $9.72 and its two-hundred day moving average price is $12.70. The firm has a market capitalization of $622.19 million, a price-to-earnings 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 results on Wednesday, March 4th. The company reported $0.19 EPS for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.02). The business had revenue of $1.22 billion for 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%.Grocery Outlet’s revenue for the quarter was up 10.7% on a year-over-year basis. During the same quarter last year, the firm posted $0.15 EPS. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. As a group, research analysts predict that Grocery Outlet will post 0.63 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. T. Rowe Price Investment Management Inc. grew its holdings in Grocery Outlet by 54.0% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 15,763,945 shares of the company’s stock worth $159,216,000 after purchasing an additional 5,528,722 shares during the period. Vanguard Group Inc. boosted its position in shares of 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 purchasing an additional 213,325 shares in the last quarter. Mackenzie Financial Corp boosted its position in shares of Grocery Outlet by 0.5% during the 4th quarter. Mackenzie Financial Corp now owns 4,709,721 shares of the company’s stock worth $47,757,000 after purchasing an additional 22,418 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Grocery Outlet by 5.0% in the 3rd quarter. Dimensional Fund Advisors LP now owns 4,619,851 shares of the company’s stock valued at $74,149,000 after buying an additional 221,693 shares during the period. Finally, Marshall Wace LLP increased its position in Grocery Outlet by 0.5% in the 3rd quarter. Marshall Wace LLP now owns 4,577,371 shares of the company’s stock valued at $73,467,000 after buying an additional 20,819 shares in the last quarter. 99.87% of the stock is owned by institutional investors.

Grocery Outlet News Roundup

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.