Groupon (NASDAQ:GRPN) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Thursday.
According to Zacks, “Groupon reported mixed fourth-quarter results. Revenues also declined on a year over year basis. The company has been trying to reduce dependence on goods deals and is shifting focus toward local services market. This is because local services market is a high margin business while goods deals bring in high revenues but smaller margins. The transition is hurting the company’s revenues as reflected in fourth-quarter results. Reduced international footprint will continue to hurt top-line growth at least in the near term. Moreover, intensifying competition is a significant headwind. However, the company’s partnership with Grubhub and ParkWhiz along with ongoing brand awareness programs is anticipated to boost revenues. Further, the company’s policy of launching new products on a regular basis is a positive. With a proper mix of products along with accelerating consumer activities, we anticipate growth going forward.”
Several other brokerages have also commented on GRPN. Vetr lowered Groupon from a “buy” rating to a “hold” rating and set a $6.09 target price on the stock. in a research report on Monday, December 11th. Piper Jaffray Companies reiterated an “overweight” rating and set a $6.25 price target on shares of Groupon in a report on Tuesday, December 12th. DA Davidson reiterated a “buy” rating on shares of Groupon in a report on Thursday, November 30th. TheStreet upgraded Groupon from a “d” rating to a “c-” rating in a report on Thursday, November 2nd. Finally, BidaskClub lowered Groupon from a “buy” rating to a “hold” rating in a report on Friday, December 15th. Six research analysts have rated the stock with a sell rating, nine have given a hold rating, six have given a buy rating and one has given a strong buy rating to the company’s stock. Groupon currently has an average rating of “Hold” and an average target price of $5.08.
Shares of Groupon (GRPN) opened at $4.29 on Thursday. Groupon has a 52-week low of $2.90 and a 52-week high of $5.99. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.95 and a current ratio of 0.95. The company has a market capitalization of $2,403.36, a PE ratio of 214.61, a P/E/G ratio of 24.26 and a beta of 1.47.
Groupon (NASDAQ:GRPN) last announced its earnings results on Wednesday, February 14th. The coupon company reported $0.07 EPS for the quarter, missing the consensus estimate of $0.09 by ($0.02). Groupon had a net margin of 0.49% and a return on equity of 0.22%. The business had revenue of $873.17 million for the quarter, compared to the consensus estimate of $853.13 million. During the same quarter in the previous year, the company earned $0.07 EPS. The firm’s revenue for the quarter was down 3.5% on a year-over-year basis. research analysts forecast that Groupon will post 0.03 earnings per share for the current year.
In other news, Director Eric P. Lefkofsky sold 1,500,000 shares of the stock in a transaction that occurred on Thursday, December 7th. The stock was sold at an average price of $5.77, for a total value of $8,655,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Brian Stevens sold 20,000 shares of the stock in a transaction that occurred on Friday, November 24th. The stock was sold at an average price of $5.71, for a total value of $114,200.00. Following the completion of the sale, the chief accounting officer now directly owns 222,354 shares of the company’s stock, valued at $1,269,641.34. The disclosure for this sale can be found here. Corporate insiders own 23.40% of the company’s stock.
Institutional investors have recently modified their holdings of the company. Paloma Partners Management Co purchased a new stake in shares of Groupon in the fourth quarter worth approximately $110,000. Ameritas Investment Partners Inc. purchased a new stake in shares of Groupon during the second quarter valued at approximately $116,000. New York State Teachers Retirement System purchased a new stake in shares of Groupon during the third quarter valued at approximately $122,000. US Bancorp DE purchased a new stake in shares of Groupon during the fourth quarter valued at approximately $133,000. Finally, North Star Investment Management Corp. purchased a new stake in shares of Groupon during the fourth quarter valued at approximately $153,000. 57.01% of the stock is owned by hedge funds and other institutional investors.
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Groupon Company Profile
Groupon, Inc operates online local commerce marketplaces around the world that connect merchants to consumers by offering goods and services at a discount. The Company operates through three segments: North America, which represents the United States and Canada; EMEA, which consists of Europe, and the Middle East and Africa, and the remainder of its international operations (Rest of World).
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