Google To Buy Groupon: Shares Fall, Investors Concered ((FULL))

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 32% of Groupon shares, worth about US$67m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

The cloud data warehousing company went public in September 2020, selling 28M shares and raising $3.4B at an initial valuation of $33.3B. While shares began at $120 apiece, they ended the first day trading at more than twice that ($254). At this price point, Snowflake was valued at around $70B, and its investors and shareholders enjoyed massive returns.

Zacks' proprietary data indicates that Groupon, Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the GRPN shares relative to the market in the next few months. In addition, Groupon, Inc. has a VGM Score of F (this is a weighted average of the individual Style Scores which allow you to focus on the stocks that best fit your personal trading style). Valuation metrics show that Groupon, Inc. may be fairly valued. Its Value Score of C indicates it would be a neutral pick for value investors. The financial health and growth prospects of GRPN, demonstrate its potential to perform inline with the market. It currently has a Growth Score of F. Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of D.

Cash Flow per share ($/share) calculates the amount of incoming cash vs. the amount of outgoing cash for a company. Cash flow can be found on the cash flow statement. It's then divided by the number of shares outstanding to determine how much cash is generated per share. It's used by investors as a measure of financial health.

Investors should be mindful of the risks involved with an offer to purchase pre-IPO shares in a company. As with any investment, we encourage investors to research thoroughly both the investment product and the professional offering the product before making any investment decision.

Groupon also hit new lows yesterday. Then came word that Chairman Eric Lefkofsky transferred 18.7 million Groupon shares, valued at $77.6 million, to early investors, consultants and advisers, Bloomberg reported. 2b1af7f3a8