SCHEDULE: Morgan Stanley Reduces Grove Collaborative Stake

Morgan Stanley and its subsidiary Morgan Stanley Smith Barney LLC have filed a Schedule 13G, indicating they are no longer beneficial owners of more than five percent of Grove Collaborative Holdings, Inc.'s Class A Common Stock.

Summary

• Morgan Stanley and Morgan Stanley Smith Barney LLC have filed an amendment to their Schedule 13G filing concerning Grove Collaborative Holdings, Inc.
• The filing indicates that both entities have ceased to be beneficial owners of more than five percent of the Class A Common Stock of Grove Collaborative Holdings, Inc.
• As of the filing date, Morgan Stanley and Morgan Stanley Smith Barney LLC collectively beneficially owned 1,843,701 shares, representing 4.3% of the class of securities.
• This represents a decrease in their ownership stake below the 5% threshold that requires specific reporting under Schedule 13G.
• The filing is dated November 13, 2026, with the event requiring the filing occurring on September 30, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as having a negative sentiment due to the reporting entities ceasing to be beneficial owners of more than five percent of the class of securities, indicating a reduction in their stake.

Negatives

• Morgan Stanley and Morgan Stanley Smith Barney LLC are no longer beneficial owners of more than five percent of Grove Collaborative Holdings, Inc.'s Class A Common Stock.
• This indicates a significant reduction in their investment or holdings in the company.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from Grove Collaborative Holdings, Inc. It solely reports a change in beneficial ownership by Morgan Stanley and its subsidiary.

Management Comments

• "As of the date hereof, Morgan Stanley has ceased to be the beneficial owner of more than five percent of the class of securities."
• "As of the date hereof, Morgan Stanley Smith Barney LLC has ceased to be the beneficial owner of more than five percent of the class of securities."
• "This filing reflects the securities beneficially owned, or that may be deemed to be beneficially owned, by certain operating units (collectively, the 'MS Reporting Units') of Morgan Stanley and its subsidiaries and affiliates (collectively, 'MS'). This filing does not reflect securities, if any, beneficially owned by any operating units of MS whose ownership of securities is disaggregated from that of the MS Reporting Units in accordance with the Release."

Industry Context

StockSavvy.ai notes that a Schedule 13G filing typically indicates passive investment. The reduction in stake by Morgan Stanley and its subsidiary below the 5% threshold suggests a shift in their investment strategy or a reallocation of capital, which is common in the financial services industry as firms adjust their portfolios.

Stakeholder Impact

• Shareholders: May perceive this reduction in stake by a significant financial institution as a signal, potentially impacting investor sentiment and share price, though the passive nature of 13G filings suggests it's not necessarily a negative commentary on the company's fundamentals.
• Creditors: The change in ownership by a major financial entity is unlikely to have a direct impact on the company's creditworthiness unless it signals broader market concerns.
• Employees: No direct impact is indicated by this filing.
• Suppliers/Customers: No direct impact is indicated by this filing.

Next Steps

• Morgan Stanley and Morgan Stanley Smith Barney LLC will continue to report any changes in beneficial ownership as required by SEC regulations.
• Grove Collaborative Holdings, Inc. may see adjustments in its shareholder base due to this change in significant ownership.

Key Dates

Recommendation

The filing indicates a reduction in stake by Morgan Stanley and its subsidiary below the 5% threshold, which is a negative signal regarding their current conviction in the stock. However, as this is a Schedule 13G filing, it pertains to passive investment, and the reduction doesn't necessarily imply a fundamental negative view of Grove Collaborative Holdings, Inc. The remaining 4.3% ownership still represents a notable position. Therefore, a 'hold' recommendation is appropriate, advising investors to monitor further developments and the company's performance.

Keywords

Grove Collaborative Holdings, Schedule 13G, Beneficial Ownership, Morgan Stanley, Class A Common Stock, Ownership Stake