Groupon Under Pressure For Second Trading Day In A Row
Since being downgraded by Goldman Sachs on December 2 from Buy to Neutral and having its price target lowered to 11, Groupon Inc (NASDAQ: GRPN) shares have rallied from 8.40 to 12.19 as of last Thursday. However, since failing to close above 12, the issue has lost six percent in the last two trading sessions.
Interestingly, if one was playing the contrarian role on that day, they may have been able to purchase the issue at its lowest level since the August 7 low (8.51), as GRPN reached 8.40. The following day, GRPN clawed back into the 9 handle and after three consecutive closes at 9.09, shares were off to the races.
Perhaps the 162% increase from its 2012 year-end close (4.86) to its September high (12.76) and the subsequent pullback prompted the downgrade.
Now with GRPN returning to the Goldman Sachs price target of 11, investors still holding on to the issue may want to pay close attention to the current action to determine if the issue will be able to match its 2013 performance in 2014.
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