Groupon (NASDAQ:GRPN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.

According to Zacks, “Groupon operates a website that offers daily discount deals. Due to company’s operating model it has to continue spending on generating awareness about its offerings which ensures recurring expenditure weighing down profitability. Moreover, revenue growth has slowed down in the last couple of years. Reduced international footprint will continue to hurt top-line growth at least in the near term. Moreover, intensifying competition is a significant headwind. Shares of the company have also underperformed the industry over the past three months. However, the company’s partnership with Grubhub and ongoing brand awareness programs are anticipated to boost revenues. Moreover, the company’s policy of launching new products on a regular basis is a positive.”

A number of other research firms have also recently commented on GRPN. Vetr cut shares of Groupon from a “buy” rating to a “hold” rating and set a $6.09 target price on the stock. in a research report on Monday, December 11th. Piper Jaffray Companies reiterated an “overweight” rating and set a $6.25 price target on shares of Groupon in a research report on Tuesday, December 12th. DA Davidson reissued a “buy” rating on shares of Groupon in a research report on Thursday, November 30th. TheStreet raised shares of Groupon from a “d” rating to a “c-” rating in a research report on Thursday, November 2nd. Finally, BidaskClub cut shares of Groupon from a “buy” rating to a “hold” rating in a research report on Friday, December 15th. Six equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus price target of $5.06.

Groupon (NASDAQ GRPN) opened at $5.20 on Monday. Groupon has a 12-month low of $2.90 and a 12-month high of $5.99. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.86 and a current ratio of 0.86. The company has a market cap of $2,900.00, a price-to-earnings ratio of -34.67, a PEG ratio of 26.42 and a beta of 1.47.

In related news, Director Eric P. Lefkofsky sold 1,500,000 shares of Groupon stock in a transaction on Thursday, December 7th. The shares were sold at an average price of $5.77, for a total value of $8,655,000.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Brian Stevens sold 20,000 shares of Groupon stock in a transaction on Friday, November 24th. The stock was sold at an average price of $5.71, for a total transaction of $114,200.00. Following the completion of the sale, the chief accounting officer now owns 222,354 shares of the company’s stock, valued at approximately $1,269,641.34. The disclosure for this sale can be found here. 23.40% of the stock is currently owned by insiders.

Large investors have recently modified their holdings of the stock. Nationwide Fund Advisors bought a new stake in shares of Groupon in the second quarter worth $1,093,000. Westpac Banking Corp bought a new stake in shares of Groupon in the third quarter worth $877,000. Engineers Gate Manager LP bought a new stake in Groupon during the fourth quarter valued at $1,518,000. Global X MANAGEMENT CO LLC increased its stake in Groupon by 16.2% during the third quarter. Global X MANAGEMENT CO LLC now owns 559,862 shares of the coupon company’s stock valued at $2,911,000 after purchasing an additional 78,027 shares during the last quarter. Finally, Macquarie Group Ltd. bought a new stake in Groupon during the third quarter valued at $579,000. Institutional investors and hedge funds own 59.81% of the company’s stock.

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Groupon Company Profile

Groupon, Inc operates online local commerce marketplaces around the world that connect merchants to consumers by offering goods and services at a discount. The Company operates through three segments: North America, which represents the United States and Canada; EMEA, which consists of Europe, and the Middle East and Africa, and the remainder of its international operations (Rest of World).

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