JOHN BACHMAN Takes a Bullish Stance: Acquires $159K In Grocery Outlet Holding Stock

A significant insider buy by JOHN BACHMAN, Director at Grocery Outlet Holding GO, was executed on March 5, and reported in the recent SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, BACHMAN increased their investment in Grocery Outlet Holding by purchasing 14,000 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $159,040.

Tracking the Thursday's morning session, Grocery Outlet Holding shares are trading at $11.35, showing a down of 1.04%.

Get to Know Grocery Outlet Holding Better

Grocery Outlet Holding Corp is a grocery store operator in the United States. It is a retailer of quality, name-brand consumables and fresh products sold through a network of independently operated stores. The stores are run by Entrepreneurial independent operators which create a neighborhood feel through personalized customer service and a localized product offering.

A Deep Dive into Grocery Outlet Holding's Financials

Revenue Growth: Grocery Outlet Holding's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 10.91%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 29.5%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): With an EPS below industry norms, Grocery Outlet Holding exhibits below-average bottom-line performance with a current EPS of 0.02.

Debt Management: Grocery Outlet Holding's debt-to-equity ratio is below the industry average. With a ratio of 1.38, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 28.68 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.26 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 14.09 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Exploring the Significance of Insider Trading

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

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

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

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