Views of Wall Street’s Leading Experts on Groupon Inc.

Groupon Inc. (NASDAQ: GRPN) stock jumped 4.62% on Tuesday to $8.60 against a previous-day closing price of $8.22. With 1.14 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.11 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $8.80 whereas the lowest price it dropped to was $8.13. The 52-week range on GRPN shows that it touched its highest point at $31.15 and its lowest point at $6.22 during that stretch. It currently has a 1-year price target of $9.38. Beta for the stock currently stands at 1.87.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GRPN was up-trending over the past week, with a rise of 3.24%, but this was up by 18.95% over a month. Three-month performance surged to 25.36% while six-month performance fell -17.94%. The stock lost -59.83% in the past year, while it has gained 0.23% so far this year. A look at the trailing 12-month EPS for GRPN yields -5.26 with Next year EPS estimates of 0.63. For the next quarter, that number is -0.40. This implies an EPS growth rate of 135.10% for this year and 130.60% for next year. EPS is expected to grow by 8.48% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 20.80%.

Float and Shares Shorts:

At present, 30.31 million GRPN shares are outstanding with a float of 19.17 million shares on hand for trading. On Oct 13, 2022, short shares totaled 6.13 million, which was 20.26% higher than short shares on Sep 14, 2022. In addition to Mr. Kedar Deshpande as the firm’s CEO & Director, Mr. Eric P. Lefkofsky serves as its Co-Founder & Independent Director.


Institutional Ownership:

Through their ownership of 65.73% of GRPN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 62.79% of GRPN, in contrast to 42.98% held by mutual funds. Shares owned by individuals account for 14.42%. As the largest shareholder in GRPN with 9.84% of the stake, RPD Fund Management LLC holds 2,995,720 shares worth 2,995,720. A second-largest stockholder of GRPN, Prentice Capital Management LP, holds 1,506,560 shares, controlling over 4.95% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in GRPN, holding 1,488,315 shares or 4.89% stake. With a 2.30% stake in GRPN, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 698,916 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 1.68% of GRPN stock, is the second-largest Mutual Fund holder. It holds 511,507 shares valued at 4.39 million. Schwab Fundamental US Small Compa holds 1.00% of the stake in GRPN, owning 305,128 shares worth 2.62 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GRPN since 5 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GRPN analysts setting a high price target of $15.00 and a low target of $6.00, the average target price over the next 12 months is $9.38. Based on these targets, GRPN could surge 74.42% to reach the target high and fall by -30.23% to reach the target low. Reaching the average price target will result in a growth of 9.07% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. GRPN will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of -$1.94 being high and -$2.46 being low. For GRPN, this leads to a yearly average estimate of -$2.19. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Groupon Inc. surprised analysts by -$0.28 when it reported -$0.68 EPS against a consensus estimate of -$0.40. The surprise factor in the prior quarter was $0.10. Based on analyst estimates, the high estimate for the next quarter is -$0.13 and the low estimate is -$0.48. The average estimate for the next quarter is thus -$0.33.

Summary of Insider Activity:

Insiders traded GRPN stock several times over the past three months with 7 Buys and 9 Sells. In these transactions, 93,383 shares were bought while 5,149,860 shares were sold. The number of buy transactions has increased to 69 while that of sell transactions has risen to 33 over the past year. The total number of shares bought during that period was 3,446,590 while 5,895,853 shares were sold.

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