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In a recent transaction, Erik D. Ragatz, a director at Grocery Outlet Holding Corp. (NASDAQ:GO), acquired 165,000 shares of the company’s common stock, valued at approximately $2.02 million. The shares were purchased at a price of $12.25 each on February 28, 2025. The purchase comes as the $1.1 billion market cap company trades near its 52-week low of $10.26, having declined 55% over the past year. According to InvestingPro analysis, the stock appears undervalued at its current price of $11.33.
Following this acquisition, Ragatz’s total direct and indirect holdings include 201,500 shares held by a trust, 37,789 shares held directly, 539,785 shares through a limited partnership, 5,200 shares by his spouse, and 38,000 shares in a 401(k) plan. Track insider transactions and access comprehensive analysis with InvestingPro, which offers detailed insider trading patterns and 12 additional key insights about GO.
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 analyst expectation of $0.17. Despite the EPS miss, the company exceeded revenue forecasts, achieving $1.1 billion against the anticipated $1.09 billion. Analysts from Craig-Hallum, Telsey Advisory Group, and DA Davidson have all lowered their price targets for Grocery Outlet, citing concerns over profitability and ongoing system issues that have impacted gross margins. Craig-Hallum reduced their target to $13.50, maintaining a Hold rating, while Telsey adjusted their target to $16.00 with a Market Perform rating, and DA Davidson set a new target of $15.00, keeping a Neutral rating.
Grocery Outlet’s comparable store sales increased by 2.9%, surpassing some forecasts, but profitability was negatively affected by higher-than-expected shrinkage due to system conversion issues. The company also announced a restructuring plan, which includes store closures and lease exits, aimed at improving long-term returns, though it is expected to impact short-term profitability. The management has expressed confidence that these initiatives will enhance unit economics once fully implemented. Despite the challenges, the company plans to open 33 to 35 net new stores in 2025, focusing on existing and adjacent markets to improve sales productivity. Analysts have noted that while Grocery Outlet’s top-line performance remains strong, operational challenges and strategic shifts are likely to influence its financial outlook in the near term.
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