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Is Grocery Outlet Stock Losing Its Sheen?

Story Highlights

Investors could learn a lot about a company from the buying and selling activities of its top officials. It would be interesting to study the recent selling activities by some of Grocery Outlet’s insiders.

Grocery Outlet Holding Corp. (NASDAQ: GO) has recently witnessed multiple selling transactions by some of its top officials. The most recent transaction was made by the company’s Director, Read S. MacGregor Jr.

MacGregor Jr. holds a 10% stake in Grocery Outlet, a retailer of fresh products, consumables, and other items. The $3.7-billion company is headquartered in Emeryville, CA. Exiting the first quarter of Fiscal 2022 (ended April 2, 2022), the company had a total of 418 retail stores.

A snapshot of the transaction made by MacGregor Jr. is provided below.

Date: June 2, 2022
Nature of Transaction: Informative Sell
Number of Shares: Approximately 0.25 million shares
Amount: $9.51 million
Price Movement since Stake Buying: 0.5% ↓

Besides the stake sold by MacGregor Jr., multiple other activities by corporate insiders have been recorded by TipRanks in the past two weeks.

TipRanks’ Insider Activity tool shows that the insider confidence signal is currently Very Negative for GO. In the last three months, insiders have sold GO shares worth $20.2 million.

Stock Rating

Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on five Buys and three Holds. GO’s average price target of $35.35 suggests 6.97% downside potential from current levels.

Conclusion

The selling transactions by Grocery Outlet’s top officials could mean heightened risks from a highly leveraged balance sheet, rising costs and expenses, resources used for investments, and rising interest rates in the quarters ahead.

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