GrubHub (NYSE:GRUB) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report issued on Wednesday.
According to Zacks, “Grubhub’s fourth-quarter 2018 results were negatively impacted by higher marketing expenses due to planned expansion into new delivery markets. As these markets will take some time to generate volumes, higher upfront costs will hurt profitability. The company expects to continue expansion in 2019, but at a slower rate. Moreover, intensifying competition from the likes of UberEats doesn’t bode well. However, Grubhub is well poised on the back of an efficient delivery network and new quality-focused restaurant partners. The company is expected to benefit from an increase in active diner base due to product improvements, better restaurant selection and expansion into new markets. Shares have outperformed the industry in the past year.”
Several other research analysts have also issued reports on the stock. Stifel Nicolaus raised shares of GrubHub from a “hold” rating to a “buy” rating and reduced their target price for the company from $140.00 to $125.00 in a research note on Friday, October 26th. TheStreet lowered shares of GrubHub from a “b” rating to a “c+” rating in a research note on Monday, October 29th. Goldman Sachs Group raised shares of GrubHub from a “buy” rating to a “conviction-buy” rating in a research note on Friday, October 26th. Roth Capital reduced their target price on shares of GrubHub from $130.00 to $110.00 and set a “neutral” rating on the stock in a research note on Friday, October 26th. Finally, Credit Suisse Group raised shares of GrubHub from a “neutral” rating to an “outperform” rating and raised their target price for the company from $125.00 to $130.00 in a research note on Monday, January 28th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average price target of $119.82.
NYSE:GRUB traded down $0.13 during mid-day trading on Wednesday, reaching $82.34. 378,965 shares of the company were exchanged, compared to its average volume of 3,834,967. GrubHub has a 12 month low of $66.62 and a 12 month high of $149.35. The company has a quick ratio of 2.31, a current ratio of 2.31 and a debt-to-equity ratio of 0.20. The firm has a market cap of $7.48 billion, a P/E ratio of 66.94, a P/E/G ratio of 4.41 and a beta of 1.27.
GrubHub (NYSE:GRUB) last issued its quarterly earnings data on Thursday, February 7th. The information services provider reported $0.19 EPS for the quarter, topping analysts’ consensus estimates of $0.16 by $0.03. GrubHub had a net margin of 7.79% and a return on equity of 8.43%. The firm had revenue of $287.72 million for the quarter, compared to analyst estimates of $290.43 million. During the same quarter in the prior year, the firm earned $0.37 EPS. The company’s revenue was up 40.3% on a year-over-year basis. As a group, equities analysts predict that GrubHub will post 0.84 earnings per share for the current fiscal year.
In related news, CTO Maria Belousova sold 2,752 shares of GrubHub stock in a transaction that occurred on Wednesday, January 2nd. The shares were sold at an average price of $74.72, for a total transaction of $205,629.44. Following the transaction, the chief technology officer now owns 857 shares of the company’s stock, valued at approximately $64,035.04. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have sold a total of 9,801 shares of company stock worth $773,267 in the last three months. 1.59% of the stock is owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in GRUB. Pelham Capital Ltd. raised its holdings in shares of GrubHub by 17.1% in the fourth quarter. Pelham Capital Ltd. now owns 2,277,607 shares of the information services provider’s stock valued at $174,943,000 after purchasing an additional 332,443 shares during the last quarter. Man Group plc boosted its position in shares of GrubHub by 67.2% in the third quarter. Man Group plc now owns 9,020 shares of the information services provider’s stock valued at $1,250,000 after acquiring an additional 3,624 shares during the period. Stevens Capital Management LP boosted its position in shares of GrubHub by 60.7% in the third quarter. Stevens Capital Management LP now owns 18,717 shares of the information services provider’s stock valued at $2,595,000 after acquiring an additional 7,073 shares during the period. Three Peaks Capital Management LLC bought a new stake in shares of GrubHub in the third quarter valued at about $2,529,000. Finally, Robeco Institutional Asset Management B.V. bought a new stake in shares of GrubHub in the third quarter valued at about $270,000. 92.63% of the stock is currently owned by institutional investors and hedge funds.
GrubHub Inc, together with its subsidiaries, provides an online and mobile platform for restaurant pick-up and delivery orders in the United States. The company connects approximately 80,000 local restaurants with diners in approximately 1,600 cities. It offers Grubhub, Seamless, and Eat24 mobile applications and mobile Websites for iPhone, Android, iPad, Apple Watch, and Apple TV devices; and operates Grubhub, Seamless, and Eat24 Websites through grubhub.com, seamless.com, and eat24.com.
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