Groupon shares witnessed a significant decline in short interest for the month of March. Short interest as of March 31 totaled nearly 59.3 million shares, which was a decline of 14.1% from the March 13 total of about 69 million shares. Presently, around 12.6% of the shares of the stock are sold short.
Is Groupon undervalued?
In a recent research report, Piper Jaffray analyst Gene Munster stated that the company is undervalued and should be worth $6 billion. Munster stated that Groupon has many significantly undervalued assets which it could sell in the coming years. As per the analyst, the company could raise $730 million by selling its stake in South Korea-based Ticket Monster. Groupon could utilize the cash to fund its transition from a daily deals site into an e-commerce platform, stated the analyst.
“What is safe to say is that Groupon has several stealth assets that are generally under-appreciated by investors as far as overall value,” the analyst told Bloomberg.
Analysts take on Groupon
In recent weeks, many analysts have released their verdicts on Groupon. In a research note on March 30, analysts at Vetr raised their rating on the stock from Hold to Buy and assigned a price target of $8.71. Separately in a research note issued on March 25, Wunderlich analysts raised their rating on the company from Hold to Buy and also upgraded the price target from $6 to $10. Analysts at TheStreet, in a research note on March 19, raised their rating on Groupon from Sell to Hold. Finally, Deutsche Bank analysts reiterated their Buy rating on the stock with a price target of $8.50. Presently, Groupon has a consensus rating of Buy and a consensus price target of $9.03.
In separate news, Groupon CEO Eric P. Lefkofsky sold 454,166 shares of the company in an open market transaction on April 14. Lefkofsky sold the shares at an average price of $7.28, totaling about $3.3 million, according to a filing with the SEC.
Groupon has a 52-week low of $5.18 and a 52-week high of $8.43. On Thursday, Groupon shares closed up 0.96% at $7.35, while year to date, the stock is down by almost 11%.