Shares of Vitamin Shoppe Inc (NYSE:VSI) have moved up considerably in after hours trading today after the company announced that they will initiate an accelerated share repurchase program. The company is offering $125 million in convertible notes and will use the proceeds to buy back common stock. Vitamin Shoppe Inc (NYSE:VSI) shares are up $4.50 or 14.75% in after hours trading.
“We will continue to return value to our shareholders through our share repurchase programs. Over the past month we have repurchased $6 million of our common stock and plan to continue to purchase shares going forward. Consistent with our stated goal to finalize our long-term strategic plan and communicate it in early 2016, we will continue to review further opportunities to increase return of capital to shareholders over time,” concluded Mr. Watts.
The stock increased 0.43% or $0.13 during the last trading session, hitting $30.5. About 167,295 shares traded hands. VSI has declined 27.51% since April 29, 2015 and is downtrending. It has underperformed the S&P500 by 27.31%.
From a total of 3 analysts covering Vitamin Shoppe (NYSE:VSI) stock, 0 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 0 of the ratings are positive. The highest target price is $41 while the lowest target price is $31. The mean of all analyst targets is $35.33 which is 15.84% above today’s ($30.5) stock price. Vitamin Shoppe was the topic of 6 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. Robert W. Baird downgraded shares on November 17 to a “Neutral” rating. Zacks upgraded VSI stock in a recent report from August 8 to a “Sell” rating.
Vitamin Shoppe, Inc. is a multi-channel specialty retailer and contract maker of vitamins, minerals, herbs, specialty supplements, sports nutrition and other health and wellness products (VMS). The company has a market cap of $883.81 million. The Firm operates through three divisions: retail, which includes Vitamin Shoppe, Super Supplements and Vitapath retail store formats; direct, which consists of its e-commerce and catalog formats, and manufacturing, which consists of the Nutri-Force manufacturing operations. It has 15.41 P/E ratio.