GrubHub Inc. (GRUB) Insider Trading Is Uncovering Many Things

If you can handle volatility, GrubHub Inc. (NYSE:GRUB) is the stock to watch now. The stock closed higher on 12 February. The shares accumulated 1.49 points or 1.91 percent at $79.57 with a heavy trade volume of 3.877 million shares. After opening the session at $79.2, the shares went as high as $81.8 and as low as $78.39, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $7.2 billion and now has 90.49 million shares outstanding. GrubHub Inc. (GRUB) stock has gained 1.31 percent of market value in 21 trading days.

GRUB stock has a trailing 3-year beta of 1.27, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.13 a share in the trailing twelve months. The stock’s value has surged 3.59 percent year to date (YTD) against a decline of -6.98 percent in 12 month’s time. The company’s shares still trade -46.72 percent away from its 1-year high of $149.35 and 19.44 percent up from 52-week low of $66.62. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

GrubHub Inc. (GRUB) will probably climb 44.46 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $140 price as 12-month high target. This represents a whopping 75.95 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $108, which represents a return potential of 35.73 percent when compared to the closing price of the stock of $79.57 on Tuesday, February 12. The lowest price target for the stock is $68 — slightly more than -14.54 percent from GRUB’s current share price.

History has shown that shares in GrubHub Inc. have gone up on 11 different earnings reaction days and are predicted to add 0.11 percent when the company reports upcoming earnings. Investors will get their next glimpse of GRUB’s Q1 earnings on May 06. Analysts are forecasting revenue to climb 41.8 percent to $291M in the fiscal first quarter, while earnings are seen soaring by nearly -24.32 percent to $0.28 per share. It earned $0.45 per share, better than the $0.41, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $288M, worse than the $291M analysts expected. Earnings are estimated to increase by 28.7 percent this year, 42.51 percent next year and continue to increase by 24.74 percent annually for the next 5 years.

Let’s take a look at some insider activity at GrubHub Inc. (NYSE:GRUB) and see the pattern. The earliest insider trade took place on 02/05/2019. Belousova Maria parted with a total of 3.57 thousand shares of company at average share price of $80.41. The total for the sales was set at $287.22 thousand. After this transaction, the Chief Technology Officer account balance stood at 2.12 thousand shares. The stock lost -2.9 percent since that insider sale. On 02/01/2019, Rice Linda Johnson, Director, sold 0.18 thousand shares at a price per share of $80.09. This removed 14.42 thousand shares from the insider’s fortune and the stock saw a -2.51 percent retreat in value since the news became public. This transaction left 0.19 thousand shares in the Director account.

On 01/03/2019, Chief Technology Officer Belousova Maria performed a sale transaction worth $260.7 thousand. This sale at $74.55 each has eliminated 3.5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 4.74 percent increase since the transaction was reported. The insider now is left with 0 thousand shares remaining in the account. Rice Linda Johnson, who performs the Director job, sold 0.18 thousand shares for $13.45 thousand. The disposal occurred on 01/02/2019 was priced at $74.72 per share. The share price soared 4.5 percent since the reporting date. Rice Linda Johnson now left with a stake of 0.19 thousand GRUB stock worth $14.8 thousand after the insider selling.

The stock is currently hovering around the first support level of $78.04. Below this, the next support is placed in the zone of $76.51. Till the time, the GRUB stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 49.06 on daily chart, which may remain a cause for concern. If the price breaks below $76.51 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $81.45 mark may result into a pull-back move towards $83.33 level.

Shares of GrubHub Inc. (GRUB) are trading at a P/E ratio of 91.52 times earnings reported for the past 12 months. The industry GRUB operates in has an average P/E of 32.03. Its P/E ratio went as low as 54.47X and as high as 123.93 over the 5-year span.Further, it is sporting a 7.79 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8522.76.