Groupon (GRPN) Stock Price Down 11.1% Following Weak Earnings

Shares of Groupon Inc (NASDAQ:GRPN) traded down 11.1% during mid-day trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $3.31 and last traded at $3.52. 28,784,488 shares changed hands during mid-day trading, an increase of 325% from the average session volume of 6,765,453 shares. The stock had previously closed at $3.96.

The coupon company reported $0.08 earnings per share for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.02). Groupon had a negative net margin of 0.35% and a positive return on equity of 11.15%. The company had revenue of $799.93 million for the quarter, compared to the consensus estimate of $782.54 million. During the same quarter in the previous year, the business earned $0.07 EPS. The company’s quarterly revenue was down 8.4% compared to the same quarter last year.

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A number of equities research analysts recently weighed in on the stock. BidaskClub upgraded shares of Groupon from a “sell” rating to a “hold” rating in a report on Wednesday, January 2nd. ValuEngine upgraded shares of Groupon from a “sell” rating to a “hold” rating in a report on Tuesday, January 15th. Zacks Investment Research raised shares of Groupon from a “hold” rating to a “buy” rating and set a $3.50 target price on the stock in a research report on Wednesday, January 2nd. Goldman Sachs Group assumed coverage on shares of Groupon in a research report on Monday, February 4th. They set a “neutral” rating and a $3.50 target price on the stock. Finally, B. Riley cut their target price on shares of Groupon from $6.30 to $5.60 and set a “buy” rating on the stock in a research report on Thursday, November 8th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and two have assigned a buy rating to the company. Groupon has a consensus rating of “Hold” and a consensus price target of $4.61.

In other Groupon news, Director Eric P. Lefkofsky sold 1,500,000 shares of the firm’s stock in a transaction dated Thursday, December 6th. The shares were sold at an average price of $3.04, for a total transaction of $4,560,000.00. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 16.90% of the company’s stock.

Several institutional investors have recently modified their holdings of the company. Vanguard Group Inc. grew its position in shares of Groupon by 8.0% in the 3rd quarter. Vanguard Group Inc. now owns 39,015,392 shares of the coupon company’s stock worth $147,088,000 after buying an additional 2,895,875 shares during the last quarter. Vanguard Group Inc grew its position in shares of Groupon by 8.0% in the 3rd quarter. Vanguard Group Inc now owns 39,015,392 shares of the coupon company’s stock worth $147,088,000 after buying an additional 2,895,875 shares during the last quarter. BlackRock Inc. grew its position in shares of Groupon by 3.0% in the 4th quarter. BlackRock Inc. now owns 30,525,983 shares of the coupon company’s stock worth $97,683,000 after buying an additional 899,030 shares during the last quarter. First Trust Advisors LP grew its position in shares of Groupon by 23.8% in the 3rd quarter. First Trust Advisors LP now owns 23,581,289 shares of the coupon company’s stock worth $88,901,000 after buying an additional 4,530,364 shares during the last quarter. Finally, TIAA CREF Investment Management LLC grew its position in shares of Groupon by 19.5% in the 3rd quarter. TIAA CREF Investment Management LLC now owns 11,461,128 shares of the coupon company’s stock worth $43,208,000 after buying an additional 1,871,669 shares during the last quarter. 66.96% of the stock is currently owned by hedge funds and other institutional investors.

The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.98 and a current ratio of 0.98. The stock has a market capitalization of $1.98 billion, a PE ratio of -117.33, a P/E/G ratio of 8.31 and a beta of 1.37.

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About Groupon (NASDAQ:GRPN)

Groupon, Inc operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount in North America and internationally. The company provides deals in various categories, including events and activities, beauty and spa, health and fitness, food and drink, home and garden, and automotive; and deals on various product lines, such as electronics, sporting goods, jewelries, toys, household items, and apparel, as well as provides discounted and market rates for hotel, airfare, and package deals.

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