Groupon shares concluded Friday’s trading session with modest gains, fluctuating between $22.52 and $22.66. This positive movement suggests potential stabilization following a period of weaker weekly performance.
Significant Price Target Revisions Fuel Momentum
Market analysts have demonstrated renewed confidence in the deal platform operator through substantial upward revisions. Roth Capital elevated its price objective from $33 to $47, while Northland Securities increased its target from $39 to $44. The collective consensus price target now stands at $29.80.
Further reinforcing this optimistic outlook, the Zacks Consensus Estimate for Groupon’s full-year earnings per share has been revised upward by a remarkable 31.1% over the past month, now projecting $0.80. This overwhelming analyst endorsement has earned Groupon the prestigious Zacks Rank #1 (Strong Buy) designation.
Strong Quarterly Performance Underpins Confidence
The company’s recent quarterly report, released on August 6, substantially exceeded market expectations. Rather than reporting an anticipated loss of $0.02 per share, Groupon announced a profit of $0.46 per share. Revenue performance also surpassed forecasts, with actual figures reaching $125.70 million compared to the projected $122.46 million.
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Institutional Investment Signals Growing Interest
Adding to the positive indicators, Range Financial Group LLC established a significant position during the second quarter, investing $1.26 million to acquire 37,764 Groupon shares. Such institutional accumulation typically reflects well-researched conviction in a company’s prospects.
From a technical analysis perspective, the equity generated a buy signal from a bottom formation on Wednesday. Friday’s trading session provided additional confirmation for bullish investors through increased trading volume accompanied by price appreciation.
Despite these encouraging developments, moving averages continue to indicate potential resistance levels. The stock’s weekly performance through September 19 remained subdued, showing a decline of 1.36%.
Market participants now await Groupon’s next earnings announcement scheduled for November 11. Current analyst consensus maintains a “Moderate Buy” recommendation with the $29.80 average price target suggesting substantial potential upside from current trading levels.
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