GNC Holdings Inc. (GNC) Upgraded at Zacks Investment Research
According to Zacks, “GNC Holdings ended second-quarter 2016 on a disappointing note as its revenue figure failed to meet the Zacks Consensus Estimate. Although earnings surpassed the same, it was on the back of considerably lower number of weighted average common shares outstanding and not due to any strong fundamental on the company’s part. Apart from domestic market, GNC Holdings’ operating results in overseas was equally unsatisfactory. Foreign currency also played spoilsport, particularly in Mexico. That said, it is worth mentioning that management still believes that international markets hold a tremendous potential for GNC Holdings and is thus engaged in capitalizing its opportunities in there. However, the temporary suspension of 2016 outlook is quite discouraging as it points to no major improvement in GNC Holdings’ operation, at least in the near term. “
Several other equities research analysts also recently issued reports on GNC. Morgan Stanley restated an equal weight rating and issued a $26.00 price target (down from $28.00) on shares of GNC Holdings in a report on Wednesday, June 22nd. Piper Jaffray Cos. restated an overweight rating and issued a $38.00 price target on shares of GNC Holdings in a report on Saturday, June 25th. Deutsche Bank AG lowered their price target on GNC Holdings from $26.00 to $22.00 and set a hold rating for the company in a report on Friday, July 29th. Jefferies Group lowered their price target on GNC Holdings from $27.00 to $20.00 and set a hold rating for the company in a report on Friday, July 29th. Finally, JPMorgan Chase & Co. restated a hold rating and issued a $25.00 price target on shares of GNC Holdings in a report on Friday, July 29th. One research analyst has rated the stock with a sell rating, thirteen have issued a hold rating and three have assigned a buy rating to the company. The company has a consensus rating of Hold and a consensus target price of $27.45.
Shares of GNC Holdings (NYSE:GNC) opened at 20.42 on Wednesday. The company has a 50-day moving average price of $20.35 and a 200 day moving average price of $25.25. GNC Holdings has a 12-month low of $18.92 and a 12-month high of $43.09. The firm has a market capitalization of $1.40 billion, a price-to-earnings ratio of 7.65 and a beta of 0.91.
GNC Holdings (NYSE:GNC) last released its quarterly earnings data on Thursday, July 28th. The company reported $0.79 EPS for the quarter, beating analysts’ consensus estimates of $0.78 by $0.01. The business earned $689.60 million during the quarter, compared to the consensus estimate of $670.65 million. GNC Holdings had a return on equity of 50.48% and a net margin of 7.73%. The firm’s revenue was down 2.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.79 earnings per share. Equities research analysts expect that GNC Holdings will post $2.75 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Friday, September 16th were given a $0.20 dividend. The ex-dividend date of this dividend was Wednesday, September 14th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.92%. GNC Holdings’s payout ratio is 29.52%.
Hedge funds have recently added to or reduced their stakes in the stock. Walthausen & Co. LLC boosted its stake in GNC Holdings by 49.2% in the second quarter. Walthausen & Co. LLC now owns 260,174 shares of the company’s stock worth $6,320,000 after buying an additional 85,800 shares during the last quarter. Legal & General Group Plc boosted its stake in GNC Holdings by 73.5% in the second quarter. Legal & General Group Plc now owns 38,112 shares of the company’s stock worth $919,000 after buying an additional 16,143 shares during the last quarter. Metropolitan Life Insurance Co. NY boosted its stake in GNC Holdings by 789.9% in the second quarter. Metropolitan Life Insurance Co. NY now owns 49,523 shares of the company’s stock worth $1,203,000 after buying an additional 43,958 shares during the last quarter. Highbridge Capital Management LLC acquired a new stake in GNC Holdings during the second quarter worth about $3,898,000. Finally, Jane Street Group LLC boosted its stake in GNC Holdings by 553.9% in the second quarter. Jane Street Group LLC now owns 43,123 shares of the company’s stock worth $1,047,000 after buying an additional 52,623 shares during the last quarter. 95.92% of the stock is owned by institutional investors.
GNC Holdings Company Profile
GNC Holdings, Inc is a specialty retailer of health, wellness and performance products, including vitamins, minerals and herbal supplement products (VMHS), sports nutrition products and diet products. The Company operates in three segments: Retail, Franchising and Manufacturing/Wholesale. The Retail segment includes sales of products to customers at its company-owned stores in the United States, Canada, Puerto Rico and Ireland and through its Websites, GNC.com and LuckyVitamin.com.
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