How Do Analysts View Groupon?



Groupon’s price movement

Groupon (GRPN) has a market cap of ~$1.7 billion. It rose by 4.4% to close at $3.11 per share on June 28, 2016. The stock’s weekly, monthly, and trailing 12-month (or TTM) price movements were -7.2%, -12.4%, and -38.5%, respectively, on the same day.

Groupon is trading 6.1% below its 20-day moving average, 12.7% below its 50-day moving average, and 18% below its 100-day moving average.

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Related ETF and peers

The First Trust Dow Jones Internet ETF (FDN) invests 1.1% of its holdings in Groupon. The market caps of Groupon’s competitors are as follows:

  • Live Nation (LYV): $4.4 billion
  • Nordstrom (JWN): $6.3 billion
  • eBay (EBAY): $26 billion

Stock trading at a discount to analyst estimates

Groupon’s (GRPN) stock has fallen by more than 85% since its IPO (initial public offering) in 2011. This year has been volatile as well for the stock. In February 2016, Alibaba (BABA) announced a 5.6% stake in Groupon, which drove the latter’s stock up by 29%.

In April 2016, Groupon announced that it expected to receive an investment of $250 million from private investment company Atairos. Atairos focuses on growth-oriented businesses and is backed by Comcast (CMCSA).

Comcast’s president and CEO, Neil Smit, stated, “The potential in combining Groupon’s local expertise with Comcast’s vast subscriber and advertiser network is something we look forward to closely exploring together.”

Of the 19 analysts covering Groupon, four have “buy” recommendations, three have “sell” recommendations, and 14 have “hold” recommendations. The analysts’ stock price target for the company is $4.33, with a median target estimate of $4.05. Groupon is trading at a discount of 29% to its median target.


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