GrubHub (GRUB) Raised to “Hold” at Zacks Investment Research

GrubHub (NYSE:GRUB) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a report released on Monday, Zacks.com reports.

According to Zacks, “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. Additionally, acquisitions and partnerships are anticipated to help Grubhub rapidly penetrate the market.  The company recently acquired Tapingo — a leading mobile-app for campus food delivery services — and collaborated with Yelp and Groupon, making it the preferred partner for online ordering from restaurants on these platforms. However, Grubhub’s profitability is expected to be hurt by higher marketing expenses due to planned expansion into new delivery markets. Moreover, intensifying competition from the likes of UberEats and DoorDash does not bode well. Shares have also underperformed the industry in the past year.”

GRUB has been the topic of several other reports. Craig Hallum cut their price target on shares of GrubHub from $180.00 to $150.00 and set a “buy” rating on the stock in a report on Tuesday, December 18th. They noted that the move was a valuation call. KeyCorp began coverage on shares of GrubHub in a report on Thursday, December 20th. They set a “sector weight” rating on the stock. ValuEngine upgraded shares of GrubHub from a “hold” rating to a “buy” rating in a report on Wednesday, January 2nd. Needham & Company LLC began coverage on shares of GrubHub in a report on Tuesday, January 8th. They set a “hold” rating on the stock. Finally, Morgan Stanley cut their price target on shares of GrubHub from $106.00 to $101.00 and set an “equal weight” rating on the stock in a report on Tuesday, January 8th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, sixteen have issued a buy rating and one has assigned a strong buy rating to the stock. The stock presently has an average rating of “Buy” and an average target price of $117.09.

Shares of NYSE GRUB opened at $66.31 on Monday. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.63 and a current ratio of 1.63. The stock has a market cap of $5.95 billion, a PE ratio of 53.91, a price-to-earnings-growth ratio of 3.56 and a beta of 1.23. GrubHub has a 12-month low of $64.57 and a 12-month high of $149.35.

GrubHub (NYSE:GRUB) last announced its earnings results on Thursday, February 7th. The information services provider reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.03. The firm had revenue of $287.72 million for the quarter, compared to analysts’ expectations of $290.43 million. GrubHub had a net margin of 7.79% and a return on equity of 8.25%. The business’s revenue was up 40.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.37 EPS. As a group, sell-side analysts expect that GrubHub will post 0.84 EPS for the current year.

In other GrubHub news, CTO Maria Belousova sold 2,753 shares of the company’s stock in a transaction dated Friday, February 1st. The shares were sold at an average price of $80.09, for a total value of $220,487.77. Following the transaction, the chief technology officer now directly owns 857 shares in the company, valued at approximately $68,637.13. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold a total of 4,298 shares of company stock worth $344,320 over the last 90 days. Insiders own 1.59% of the company’s stock.

Hedge funds have recently modified their holdings of the business. First Hawaiian Bank bought a new position in GrubHub in the 1st quarter worth about $30,000. Parallel Advisors LLC grew its stake in GrubHub by 99.1% in the 4th quarter. Parallel Advisors LLC now owns 432 shares of the information services provider’s stock worth $33,000 after acquiring an additional 215 shares in the last quarter. LS Investment Advisors LLC bought a new position in GrubHub in the 4th quarter worth about $64,000. Csenge Advisory Group bought a new position in GrubHub in the 3rd quarter worth about $69,000. Finally, Massey Quick Simon & CO. LLC grew its stake in GrubHub by 20.0% in the 4th quarter. Massey Quick Simon & CO. LLC now owns 1,117 shares of the information services provider’s stock worth $86,000 after acquiring an additional 186 shares in the last quarter.

GrubHub Company Profile

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 105,000 local restaurants with diners with diners in various cities. It offers Grubhub, Seamless, and Eat24 mobile applications and mobile Websites; and operates Websites through grubhub.com, seamless.com, eat24.com, and menupages.com.

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