Grocery outlet director Carey Jaros buys $57,000 in common stock

Carey F. Jaros, a director at Grocery Outlet Holding Corp. (NASDAQ:GO), recently acquired 5,000 shares of the company’s common stock, according to a filing with the Securities and Exchange Commission. The shares were purchased at a price of $11.40 each, totaling $57,000, near the stock’s 52-week low of $10.26. The purchase comes as the stock has declined about 56% over the past year, with InvestingPro data showing the shares trading below their Fair Value. Following this transaction, Jaros holds 25,374 shares in the company. The acquisition reflects Jaros’s continued investment in the retail grocery chain, which operates stores across the United States. With a market capitalization of $1.13 billion and revenue growth of 10% in the last twelve months, the company maintains strong fundamentals despite recent stock performance. InvestingPro analysis reveals 12 additional investment insights and key metrics available for subscribers, including detailed valuation analysis and growth prospects.

In other recent news, Grocery Outlet Holding Corp reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.15, which fell short of the anticipated $0.17. Despite this, the company exceeded revenue expectations, achieving $1.1 billion compared to a forecast of $1.09 billion. Analysts from Craig-Hallum, Telsey Advisory Group, and DA Davidson have adjusted their price targets for Grocery Outlet, reflecting ongoing concerns about profitability and operational challenges. Craig-Hallum lowered its target to $13.50, citing a mix of positive sales performance but ongoing system issues affecting profitability. Telsey Advisory Group reduced its target to $16.00, noting that while sales were strong, earnings did not meet expectations due to a lower-than-expected adjusted EBITDA margin. DA Davidson set a new target of $15.00, highlighting the company’s strategic decision to slow down expansion to address operational inefficiencies.

The company is actively working on a restructuring plan, which includes store closures and workforce reductions, expected to impact profitability in the short term. Grocery Outlet’s management is focused on resolving system conversion issues that have led to increased shrinkage and negatively affected profit margins. Despite these challenges, the company reported a 2.9% increase in comparable store sales and a 3% rise in transaction counts. Looking ahead, Grocery Outlet anticipates a comparable store sales growth of 2-3% for the full year 2025, with total net sales projected to reach between $4.7 billion and $4.8 billion.

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