It’s been quite a rollercoaster ride for shareholders of Weight Watchers International, Inc. (NYSE:WTW) over the last couple of months. After it was announced that Oprah Winfrey had taken a sizeable stake in the company shares skyrocketted, only to fall over 35% in the weeks to follow.
Now it appears as if a new spark has ignited a flame under Weight Watchers International, Inc. (NYSE:WTW) shares as Oprah WInfrey has begun to appear in new commercials for the company. While many investors had expected such an outcome to Winfrey’s tie-in with the company, the market is reacting quite strongly over the last two trading days. Shares are up nearly 20% from their lows yesterday and buyers seem to continue to stream in. With a PE ratio just north of 25, and the stock trading at about 1-year’s revenue, their may be even more room for shares to climb going into 2016, especially if Winfrey’s presence attracts new customers.The stock is up 12.55% or $2.43 following the news, hitting $21.8 per share. About 351,551 shares traded hands. WTW has risen 230.55% since May 27, 2015 and is uptrending. It has outperformed the S&P500 by 232.81%.
From a total of 4 analysts covering Weight Watchers International (NYSE:WTW) stock, 1 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 25% of the ratings are positive. The highest target price is $35 while the lowest target price is $6. The mean of all analyst targets is $15.07 which is -30.87% below today’s ($21.8) stock price. Weight Watchers International was the topic of 10 analyst reports since August 8, 2015 according to the firm StockzIntelligence Inc. Craig Hallum maintained shares on December 7 with a “Buy” rating. Morgan Stanley upgraded WTW stock in a recent report from August 19 to a “Equal Weight” rating. Finally, Zacks upgraded the stock to a “Hold” rating in a report they issued on an August 8.
The institutional sentiment increased to 1.19 in Q2 2015. It’s up 0.45, from 0.74 in 2015Q2. The ratio is positive, as 26 funds sold all their Weight Watchers International, Inc. shares they owned while 26 reduced their positions. 23 funds bought stakes while 39 increased their total positions. Institutions now own 53.36 million shares which is 0.69% more than the previous share count of 53.00 million in 2015Q2.
Ah Equity Partners Iii L.L.C. holds 30.43% of its total portfolio in Weight Watchers International, Inc., equating to 2,186 shares. Artal Group S.A. owns 29.44 million shares representing 4.2% of their total US portfolio. Moreover, Pomelo Capital Llc has 2.13% of their total portfolio invested in the company, equating to 806,100 shares. The Louisiana-based Diversified Investment Strategies Llc has a total of 0.68% of their portfolio invested in the stock. Permit Capital Llc, a Pennsylvania-based fund reported 104,400 shares owned.
Weight Watchers International, Inc. is a well-known provider of weight management services. The company has a market cap of $1.30 billion. The firm operates globally through a network of Company-owned and franchise operations. It has 25.67 P/E ratio. The Firm provides Services and Products including: Weight Management Plans, Clinical Efficacy, and Meetings.