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Kenneth Alterman, a director at Grocery Outlet Holding Corp. (NASDAQ:GO), recently acquired 25,000 shares of the company’s common stock. The purchase, valued at approximately $297,000, was executed at a weighted average price of $11.88 per share. Following this transaction, Alterman holds a total of 64,592 shares through the Alterman Revocable Trust. This acquisition underscores Alterman’s continued investment in the Emeryville, California-based retail grocery chain, which has seen its stock decline nearly 25% in the past week and 55% over the last year.According to InvestingPro analysis, GO currently appears undervalued, with technical indicators suggesting oversold conditions. The company maintains strong liquidity with a current ratio of 1.44, though it operates with significant debt. InvestingPro subscribers have access to 12 additional key insights about GO, including detailed insider trading analysis and comprehensive valuation metrics.
In other recent news, Grocery Outlet Holding Corp reported its fourth-quarter 2024 earnings, revealing revenue of $1.1 billion, which exceeded expectations. However, the company posted earnings per share (EPS) of $0.15, missing the forecasted $0.17. Analysts from Craig-Hallum, Telsey Advisory Group, and DA Davidson have all adjusted their price targets for the company, citing concerns over profitability and ongoing system issues. Craig-Hallum lowered its target to $13.50, Telsey to $16.00, and DA Davidson to $15.00, while maintaining their respective ratings.
The company’s comparable store sales increased by 2.9%, surpassing some analyst forecasts, yet the gross margin fell by 70 basis points due to higher-than-expected shrinkage and system integration challenges. Grocery Outlet has announced a restructuring plan involving store closures and workforce reductions, which is expected to impact profitability in the short term. Despite these challenges, the company remains focused on improving its operational efficiency and inventory management systems.
Grocery Outlet’s leadership has emphasized the importance of these strategic changes to enhance long-term returns and unit economics. The company also plans to open 33 to 35 new stores in 2025, while addressing operational challenges that have affected recent performance. As the company navigates these developments, analysts and investors will closely monitor the impact on Grocery Outlet’s financial health and growth trajectory.
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