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Eric J. Lindberg Jr., a director at Grocery Outlet Holding Corp. (NASDAQ:GO), recently sold a portion of his shares in the company. The $1.66 billion market cap retailer, currently trading at a P/E ratio of 32.9x, has shown mixed signals with management actively buying back shares while this insider sale occurs. According to InvestingPro data, the stock has gained 10.19% year-to-date. According to a filing with the Securities and Exchange Commission, Lindberg sold 29,536 shares of common stock at a price of $16.88 per share, totaling approximately $498,567. Following this transaction, Lindberg holds 119,874 shares directly. Additionally, he maintains indirect ownership of shares through various trusts and family members, including 1,976,670 shares held by the Lindberg Family Revocable Trust and 401,500 shares by the Lindberg Irrevocable Trust. The sale was made to cover tax obligations related to the vesting of Restricted Stock Units (RSUs) from his previous role as Interim President and CEO. With a healthy current ratio of 1.46 and trading at an EV/EBITDA of 16.1x, the company maintains strong liquidity despite its significant debt burden. For comprehensive insider trading analysis and 7 additional key insights about GO, visit InvestingPro.
In other recent news, Grocery Outlet Holding Corp has been the subject of several analyst updates. Jefferies maintained their Hold rating for the company, setting a price target of $14, and expressed a positive outlook on the recent appointment of Jason Potter as President and CEO. The firm anticipates that Potter’s industry knowledge will contribute to enhancing Grocery Outlet’s long-term profitability.
Meanwhile, Craig-Hallum lowered its price target for Grocery Outlet to $17 from $20, following the company’s third-quarter update and CEO transition. The company’s guidance for the fourth quarter indicated weaker same-store sales and a downward revision in adjusted EBITDA due to ongoing difficulties arising from a systems transition.
DA Davidson also maintained a Neutral rating on Grocery Outlet’s stock, reducing its price target to $17 from $18, following the company’s third-quarter results and revised 2024 outlook. The firm emphasized the need for the company to demonstrate a return to its previous levels of operational excellence before a more positive rating could be considered.
Lastly, TD Cowen moved its rating for Grocery Outlet from Buy to Hold, revising its price target downward to $16 from $25. The firm’s updated stance reflects a cautious optimism tempered by recent performance concerns and a conservative outlook for the near future. These are among the recent developments for Grocery Outlet.
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