Shares of consumer products retailer Grove Collaborative Holdings (GROV) closed 84.2% higher yesterday after unveiling an expansion of its footprint.
The company is expanding the footprint of its home care brand, Grove Co. It is expanding the omnichannel presence of the brand and has added retailers Kohl’s, Giant Eagle, and Meijer recently.
Furthermore, Grove Co has now increased its presence in Target stores and its online format by over 100%. These moves significantly boost the consumer reach of the brand.
The Co-Founder and CEO of Grove, Stuart Landesberg, commented, “We are excited to bring Grove Co.’s plastic-free home essentials into more stores, and to introduce new consumers to the brand as we continue on our mission to transform the consumer products industry into a positive force for human and environmental good.”
Grove’s special purpose acquisition company (SPAC) transaction with Virgin Group Acquisition was approved by the latter’s shareholders last month, and the new shares started trading on June 17. Shares have seen extreme gyrations since rising to $12 levels and falling to below $4. After yesterday’s price jump, the stock closed at $7.37.
Analyst’s Take on GROV
Telsey Advisory’s Dana Telsey, the only analyst covering the stock, has initiated coverage on Grove with a Buy rating and a price target of $10. This indicates a 35.69% potential upside over yesterday’s 84% jump.
Positive Hedge Fund Actions
Furthermore, our database indicates hedge funds are positive about Grove and have increased holdings in the stock by 556,500 shares in the last quarter.
Closing Note
Such a significant footprint expansion is a key catalyst for a company that had its SPAC transaction only a month ago. While Grove’s share price is seeing extreme gyrations, it would behoove investors to keep an eye on this retailer for more developments to come.
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