Investor Dumps $10.9 Million in Grocery Outlet Stock as Shares Continue Multi-Year Downtrend

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Connecticut-based Stadium Capital Management reduced its involvement successful Grocery Outlet Holding Corp by 877,860 shares successful the 3rd quarter—representing a nett presumption alteration of astir $10.9 million.
The transaction represented an 11.7% alteration comparative to the fund’s wide 13F assets nether management.
The determination besides marked a afloat exit for the fund, which reported holding nary shares of Grocery Outlet astatine quarter-end.
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On November 14, Stadium Capital Management disclosed a implicit exit from Grocery Outlet Holding Corp. (NASDAQ:GO), reducing its presumption by 877,860 shares successful an estimated $10.9 cardinal change.

According to a U.S. Securities and Exchange Commission (SEC) filing published November 14, Stadium Capital Management sold retired of Grocery Outlet Holding during the 3rd quarter. The money had antecedently reported holding 877,860 shares successful the anterior play and present reports a zero-share position. The estimated transaction value, based connected quarterly mean prices, was $10.9 million.

The implicit exit brings the presumption from 10% of the fund’s AUM arsenic of the erstwhile 4th to zero arsenic of September 30.

Top holdings aft the filing:

NYSE:BLDR: $22.2 cardinal (23.7% of AUM)
NYSE:BC: $19.5 cardinal (20.8% of AUM)
NASDAQ:SNBR: $18.4 cardinal (19.6% of AUM)
NYSE:NSP: $13 cardinal (13.9% of AUM)
NYSE:LCII: $8.9 cardinal (9.6% of AUM)

As of Friday's marketplace close, shares of Grocery Outlet Holding Corp. were priced astatine $11.13, down 48% implicit the past twelvemonth and good underperforming the S&P 500, which is up 14% successful the aforesaid period.

Metric

Value

Revenue (TTM)	$4.6 billion
Net Income (TTM)	($4.4 million)
Market Capitalization	$1.1 billion
Price (as of marketplace adjacent Friday)	$11.13

Grocery Outlet Holding Corp. operates a ample web of independently tally discount market stores crossed the United States, leveraging a flexible sourcing strategy to present value-priced products. The company’s concern exemplary centers connected procuring surplus and closeout goods, which supports its competitory pricing and appeals to cost-conscious consumers. This attack enables Grocery Outlet to support a differentiated presumption successful the market retail sector, focusing connected affordability and assortment for its people market.

A implicit exit from a apical holding often signals that an investor's assurance successful the turnaround timeline has meaningfully shifted—and Grocery Outlet’s uneven post-IPO trajectory helps explicate why. Shares stay astir 50% little implicit the past twelvemonth and much than 75% beneath their peak. The retailer’s latest 4th showed humble top-line maturation but continued bottom-line strain: Net income roseate 5.4% to $1.2 billion, yet nett income fell by much than fractional to $11.6 cardinal and adjusted EBITDA slipped to $66.7 million, oregon 5.7% of sales.

Stadium Capital’s afloat divestiture—previously a 10% portfolio position—reduces vulnerability to a concern inactive navigating a ample restructuring plan, softer comparable-store sales, and higher SG&A. Management is leaning connected a refresh programme to reinvigorate growth, with aboriginal pilots showing encouraging results, but a wide rollout brings execution hazard arsenic outgo pressures stay elevated.

For semipermanent investors, the reset whitethorn yet make an accidental if the operational rebuild delivers—but near-term visibility remains limited.

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