Shares of Weight Watchers International, Inc. (NASDAQ:WTW) recorded -2.61% loss during trading session on January 10th, 2019. The script traded as low as $34.78 and last traded at $35.08. 4.23 million shares changed exchanged hands during trading, a drop of -90.64% from the 30-day average session volume of 2.22M shares. The firm had previously closed at $36.02. The company has $71.44M outstanding shares, a price-to-earnings ratio of 14.58, price-to-earnings-growth ratio of 1.67and a beta of 2.90. The company has a RSI of 31.00, ATR of 2.62 and a volatility of 5.22% this week. WTW has a 52 week low price of $35.20 and a 52 week high price of $105.73.
Investors have identified the tech company Weight Watchers International, Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 2.51B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Weight Watchers International, Inc. (WTW) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For WTW, the company has in raw cash 219.77 million on their books with 58.37 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 0 total, with 2.34 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
WTW were able to record 222.59 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 136.72 million. In cash movements, the company had a total of 254.64 million as operating cash flow.
Potential earnings growth for Weight Watchers International, Inc. (WTW)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Weight Watchers International, Inc. recorded a total of 365.77 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.12% coming in sequential stages and their sales for the third quarter reducing by -0.12%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 150.37 million trying to sell their products during the last quarter, with the result yielding a gross income of 215.39 million. This allows shareholders to hold on to 71.44M with the revenue now reading 1050 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.46 cents a share).
Is the stock of WTW attractive?
Having a look at the company’s valuation, the company is expected to record 3.60 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on WTW sounds very interesting.
In related news, President, International Pollier-Bousquet Corinne sold 2,019 shares of the company’s stock in a transaction that recorded on November 29th, 2019. The sale was performed at an average price of 51.26, for a total value of 103,489. As the sale deal closes, the President and CEO Pollier-Bousquet Corinne now bought 7,000 shares of the company’s stock, valued at 350,707. Also, Director Amouyal Philippe sold 7,500 shares of the company’s stock in a deal that was recorded on August 31st, 2019. The shares were sold at an average price of 75.59 per share, with a total market value of 46,769. Following this completion of acquisition, the CFO & Pres., Emerging Markets now holds 131,466 shares of the company’s stock, valued at 9,946,160. In the last 6 months, insiders have changed their ownership in shares of company stock by 8.80%.
4 out of 13 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on Weight Watchers International, Inc. stock. 0 analysts has assigned a Sell rating on the WTW stock. The 12-month mean consensus price target for the company’s shares has been set at $90.92.