GNC Holdings Inc. (GNC) Rating Increased to Hold at Zacks Investment Research
GNC Holdings Inc. (NYSE:GNC) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Wednesday.
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 have also recently weighed in on GNC. Morgan Stanley reissued an “equal weight” rating and set a $26.00 price target (down previously from $28.00) on shares of GNC Holdings in a research report on Wednesday, June 22nd. Piper Jaffray Cos. reaffirmed an “overweight” rating and issued a $38.00 target price on shares of GNC Holdings in a research report on Saturday, June 25th. Deutsche Bank AG dropped their target price on shares of GNC Holdings from $26.00 to $22.00 and set a “hold” rating for the company in a research report on Friday, July 29th. Jefferies Group dropped their target price on shares of GNC Holdings from $27.00 to $20.00 and set a “hold” rating for the company in a research report on Friday, July 29th. Finally, JPMorgan Chase & Co. reaffirmed a “hold” rating and issued a $25.00 target price on shares of GNC Holdings in a research report on Friday, July 29th. One research analyst has rated the stock with a sell rating, thirteen have given a hold rating and three have assigned a buy rating to the stock. GNC Holdings presently has an average rating of “Hold” and an average target price of $27.45.
GNC Holdings (NYSE:GNC) opened at 19.87 on Wednesday. GNC Holdings has a 12-month low of $18.92 and a 12-month high of $43.09. The company’s 50-day moving average is $20.31 and its 200 day moving average is $25.31. The stock has a market capitalization of $1.36 billion, a PE ratio of 7.44 and a beta of 1.03.
GNC Holdings (NYSE:GNC) last announced its quarterly earnings results on Thursday, July 28th. The company reported $0.79 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.78 by $0.01. The business earned $689.60 million during the quarter, compared to analysts’ expectations of $670.65 million. GNC Holdings had a net margin of 7.73% and a return on equity of 50.48%. The firm’s revenue for the quarter was down 2.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.79 EPS. On average, equities research analysts expect that GNC Holdings will post $2.75 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 30th. Shareholders of record on Friday, September 16th will be paid a dividend of $0.20 per share. The ex-dividend date is Wednesday, September 14th. This represents a $0.80 dividend on an annualized basis and a yield of 4.03%. GNC Holdings’s dividend payout ratio is currently 29.52%.
A number of hedge funds have recently added to or reduced their stakes in the stock. Geode Capital Management LLC raised its stake in shares of GNC Holdings by 14.3% in the first quarter. Geode Capital Management LLC now owns 1,055,517 shares of the company’s stock worth $33,512,000 after buying an additional 132,002 shares in the last quarter. HealthInvest Partners AB raised its stake in shares of GNC Holdings by 16.2% in the second quarter. HealthInvest Partners AB now owns 681,955 shares of the company’s stock worth $16,565,000 after buying an additional 95,000 shares in the last quarter. Teachers Advisors Inc. raised its stake in shares of GNC Holdings by 7.3% in the first quarter. Teachers Advisors Inc. now owns 125,585 shares of the company’s stock worth $3,987,000 after buying an additional 8,527 shares in the last quarter. Jacobs Levy Equity Management Inc. bought a new stake in shares of GNC Holdings during the first quarter worth approximately $440,000. Finally, Prudential Financial Inc. raised its stake in shares of GNC Holdings by 176.8% in the first quarter. Prudential Financial Inc. now owns 2,076,460 shares of the company’s stock worth $65,928,000 after buying an additional 1,326,320 shares in the last quarter. Institutional investors and hedge funds own 95.92% of the company’s stock.
About GNC Holdings
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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