GrubHub Inc (GRUB) Announces $100 Million Share Buyback Along with $200 Million Credit Facility

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It’s been a big day for GrubHub Inc (NYSE:GRUB) as the company has not only announced preliminary fourth quarter results that were better than expected, but also other news.

First off, the company said that they expect to report revenue for the fourth quarter at the higher end of their $98-100 million guidance, which would likely beat the $99.26 million that analysts had been expecting. Additionally GrubHub’s (NYSE:GRUB) adjusted earnings are likely to be above their guidance of $23-$25 million, the company said in a statement earlier today.

In other news, GrubHub Inc (NYSE:GRUB) will be initiating a $100 million stock repurchase agreement, likely spurred on by a new $200 million credit facility that the company has secured. Shares of GrubHub started the day in the green, but have since sold off considerably as the market weighs the news. The stock is down 2.76% or $0.53 following the news, hitting $18.64 per share. About 5.92M shares traded hands or 170.32% up from the average. GRUB has declined 44.87% since June 18, 2015 and is downtrending. It has underperformed the S&P500 by 36.00%.

From a total of 7 analysts covering Grubhub Inc (NYSE:GRUB) stock, 4 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 57% of the ratings are positive. The highest target price is $50 while the lowest target price is $25. The mean of all analyst targets is $31.90 which is 71.14% above today’s ($18.64) stock price. Grubhub Inc was the topic of 17 analyst reports since July 27, 2015 according to the firm StockzIntelligence Inc. Mizuho initiated shares on December 3 with a “Buy” rating. Brean Capital maintained shares with a”Buy” rating and a $29 target share price in their report from an October 28. Northland Capital maintained GRUB stock in a recent report from October 28 with a “Outperform” rating. Susquehanna initiated the rating on August 10. Susquehanna has a “Positive” rating and a $44 price target on shares. Finally, Susquehanna downgraded the stock to a “Neutral” rating in a report they issued on an October 28.

GrubHub Inc. is an online and mobile platform for restaurant pick-up and delivery orders. The company has a market cap of $1.59 billion. The Firm connects more than 30,000 local restaurants with diners in more than 800 cities across the United States. It has 42.28 P/E ratio. The Company’s target market is primarily composed of independent restaurants.

#focuskw=’GrubHub Inc (NYSE:GRUB)’##metadesc=’It’s been a big day for GrubHub Inc (NYSE:GRUB) as the company has not only announced preliminary fourth quarter results that were better than expected, but also other news.First off, the company said that they expect to report revenue for the fourth quarter at the higher end of their $98-100 million guidance, which would likely beat the $99.26 million that analysts had been expecting. Additionally GrubHub’s (NYSE:GRUB) adjusted earnings are likely to be above their guidance of $23-$25 million, the company said in a statement earlier today.In other news, GrubHub Inc (NYSE:GRUB) will be initiating a $100 million stock repurchase agreement, likely spurred on by a new $200 million credit facility that the company has secured. Shares of GrubHub started the day in the green, but have since sold off considerably as the market weighs the news. ‘##metarobot=’index’##newskw=’Zafgen Inc positive news,Zafgen Inc – (NASDAQ:ZFGN),NASDAQ:ZFGN Analyst rating analysis,Stock Analysis,Outlook and potential,ZFGN Price change and trend,ZFGN stock update’##sitemap=’include’##skipsocial##stockticker=’NYSE:GRUB’#

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