Director At Grocery Outlet Holding Buys $1.03M of Stock

Erik Ragatz, Director at Grocery Outlet Holding GO, reported an insider buy on March 26, according to a new SEC filing.

What Happened: In a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, it was disclosed that Ragatz bought 36,500 shares of Grocery Outlet Holding, amounting to a total of $1,031,015.

During Wednesday's morning session, Grocery Outlet Holding shares up by 3.05%, currently priced at $28.71.

All You Need to Know About Grocery Outlet Holding

Grocery Outlet Holding Corp is a grocery store operator in the United States. Its flexible buying model allows them to offer quality, name-brand opportunistic products at prices generally 40% to 70% below those of conventional retailers. The stores are run by Entrepreneurial independent operators which create a neighborhood feel through personalized customer service and a localized product offering.

Grocery Outlet Holding: A Financial Overview

Revenue Growth: Grocery Outlet Holding's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 6.34%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.

Insights into Profitability:

• Gross Margin: With a high gross margin of 30.19%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Grocery Outlet Holding's EPS is below the industry average. The company faced challenges with a current EPS of 0.14. This suggests a potential decline in earnings.

Debt Management: Grocery Outlet Holding's debt-to-equity ratio is below the industry average. With a ratio of 1.14, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 35.27 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.71 is above industry norms, reflecting an elevated valuation for Grocery Outlet Holding's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Grocery Outlet Holding's EV/EBITDA ratio of 18.81 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Insider Activity Matters in Finance

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Grocery Outlet Holding's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.