Short Interest For Groupon Inc Down 14.1% In March

0
Short Interest For Groupon Inc Down 14.1% In March
By GrouponRUS (Own work) [<a href="http://creativecommons.org/licenses/by-sa/4.0">CC BY-SA 4.0</a>], <a href="https://commons.wikimedia.org/wiki/File%3AG_logo_groupon_green_on_white.jpg">via Wikimedia Commons</a>

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.

Abacab Fund Sees Mispricing In Options As Black-Scholes Has Become “Inadequate”

Abacab Asset Management's flagship investment fund, the Abacab Fund, had a "very strong" 2020, returning 25.9% net, that's according to a copy of the firm's year-end letter to investors, which ValueWalk has been able to review. Commenting on the investment environment last year, the fund manager noted that, due to the accelerated adoption of many Read More


“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%.

No posts to display