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Andrea Renee Bortner, Executive Vice President and Chief Human Resources Officer at Grocery Outlet Holding Corp. (NASDAQ:GO), a $1.13 billion market cap company currently trading at $11.53, recently sold shares of the company, according to a filing with the Securities and Exchange Commission. According to InvestingPro analysis, the stock appears undervalued despite falling over 56% in the past year. On March 4, Bortner sold 5,260 shares at a price of $11.34 each, and on March 5, she sold an additional 1,425 shares at $11.32 per share. The total value of these transactions amounted to $75,779. These transactions occurred near the stock’s 52-week low of $10.26, significantly below its high of $29.13. Unlock comprehensive insider trading analysis and 12 additional key insights with InvestingPro.
Following these sales, Bortner holds 37,634 shares directly. Additionally, she indirectly holds 31,167 shares through the Bortner Family Trust, where she serves as a trustee. The initial sale of shares on March 4 was conducted to cover tax obligations related to the vesting of restricted stock units, while the subsequent sale on March 5 was part of a pre-established trading plan under Rule 10b5-1, adopted in June 2024.
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, while revenue surpassed expectations, reaching $1.1 billion against a forecasted $1.09 billion. Analysts at Craig-Hallum, Telsey Advisory Group, and DA Davidson have adjusted their price targets for Grocery Outlet, citing ongoing challenges with profitability and system integration issues. Craig-Hallum reduced its price target to $13.50, Telsey to $16.00, and DA Davidson to $15.00, each maintaining a neutral or hold stance on the stock.
Grocery Outlet’s comparable store sales increased by 2.9%, with transaction growth showing a 3.0% increase. However, profitability was negatively impacted by higher shrinkage due to ongoing issues with systems conversion, leading to a gross margin shortfall. The company is implementing a restructuring plan that includes store closures and workforce reductions, expected to affect profitability in the short term. Despite these challenges, Grocery Outlet is actively working to resolve system issues and improve inventory management.
Looking ahead, Grocery Outlet anticipates full-year 2025 comparable store sales growth between 2-3%, with total net sales projected to reach between $4.7 billion and $4.8 billion. The company expects gross margins to be in the range of 30-30.5% and adjusted EBITDA to fall between $260 million and $270 million. Analysts from Telsey Advisory Group and DA Davidson noted that while the company’s top-line performance has been strong, concerns about operational efficiency and the strategic pivot to address these issues are expected to influence the company’s financial outlook in the near term.
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