Capstone Holding Corp. lowers convertible note conversion price to $1.00
Eric J. Lindberg Jr., a director at Grocery Outlet Holding Corp. (NASDAQ:GO), recently sold 6,051 shares of the company’s common stock. The shares were sold at a price of $11.34 each, totaling approximately $68,618. This transaction was carried out to satisfy Lindberg’s tax withholding obligations upon the vesting of previously granted restricted stock units (RSUs). The sale comes as the stock trades near $11.53, down over 56% in the past year, with InvestingPro analysis indicating the stock is currently slightly undervalued.
Following the sale, Lindberg retains direct ownership of 193,451 shares. Additionally, he holds indirect ownership of shares through various trusts and family members. The Lindberg Family Revocable Trust holds 1,976,670 shares, the Lindberg Irrevocable Trust holds 401,500 shares, and smaller amounts are held by his child and spouse. With a market capitalization of $1.13 billion and a current ratio of 1.44, InvestingPro data shows the company maintains healthy liquidity despite recent market challenges. Discover more insights and 11 additional ProTips with an InvestingPro subscription.
In other recent news, Grocery Outlet Holding Corp reported its fourth-quarter 2024 earnings, revealing a slight miss on earnings per share (EPS) compared to analyst expectations. The company posted an EPS of $0.15, falling short of the forecasted $0.17, although revenue surpassed expectations, reaching $1.1 billion against a forecasted $1.09 billion. Analysts from Craig-Hallum, Telsey Advisory Group, and DA Davidson have all recently adjusted their price targets for Grocery Outlet, reflecting concerns over profitability despite strong sales figures. Craig-Hallum reduced its target to $13.50, Telsey lowered it to $16.00, and DA Davidson set a target of $15.00, each citing ongoing system issues and shrinkage affecting margins.
Grocery Outlet’s comparable store sales increased by 2.9%, exceeding some forecasts, but profitability was impacted by higher shrinkage due to system conversion issues. The company is implementing a restructuring plan aimed at optimizing unit growth and streamlining the supply chain, which includes store closures and workforce reductions. This plan is expected to affect profitability negatively in the short term, particularly in the first half of 2025.
Grocery Outlet’s management anticipates that these initiatives will enhance long-term returns once fully implemented. Despite the challenges, the company continues to focus on resolving system issues and improving inventory management. Analyst firms like Craig-Hallum and Telsey Advisory Group have maintained their Hold and Market Perform ratings, respectively, reflecting the mixed outlook on Grocery Outlet’s near-term financial performance.
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