GNC Holdings Inc. (NYSE:GNC) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a 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 analysts also recently issued reports on GNC. Morgan Stanley restated an “equal weight” rating and set a $26.00 price objective (down previously from $28.00) on shares of GNC Holdings in a report on Wednesday, June 22nd. Piper Jaffray Cos. restated an “overweight” rating and set a $38.00 price objective on shares of GNC Holdings in a report on Saturday, June 25th. Deutsche Bank AG cut their price objective on shares of GNC Holdings from $26.00 to $22.00 and set a “hold” rating on the stock in a report on Friday, July 29th. Jefferies Group cut their price objective on shares of GNC Holdings from $27.00 to $20.00 and set a “hold” rating on the stock in a report on Friday, July 29th. Finally, JPMorgan Chase & Co. restated a “hold” rating and set a $25.00 price objective on shares of GNC Holdings in a report on Friday, July 29th. One investment analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and three have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $27.45.
Shares of GNC Holdings (NYSE:GNC) opened at 19.87 on Wednesday. The stock’s 50 day moving average is $20.31 and its 200 day moving average is $25.31. GNC Holdings has a 52-week low of $18.92 and a 52-week high of $43.09. The company has a market cap of $1.36 billion, a PE ratio of 7.44 and a beta of 1.03.
GNC Holdings (NYSE:GNC) last posted its quarterly earnings data on Thursday, July 28th. The company reported $0.79 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.78 by $0.01. GNC Holdings had a net margin of 7.73% and a return on equity of 50.48%. The firm had revenue of $689.60 million for the quarter, compared to the consensus estimate of $670.65 million. During the same quarter in the prior year, the company posted $0.79 earnings per share. The company’s revenue for the quarter was down 2.4% compared to the same quarter last year. Equities analysts forecast that GNC Holdings will post $2.75 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, September 30th. Stockholders of record on Friday, September 16th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Wednesday, September 14th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 4.03%. GNC Holdings’s dividend payout ratio (DPR) is 29.52%.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Victory Capital Management Inc. raised its position in shares of GNC Holdings by 17.6% in the second quarter. Victory Capital Management Inc. now owns 7,121 shares of the company’s stock worth $173,000 after buying an additional 1,065 shares during the period. Landscape Capital Management L.L.C. acquired a new position in shares of GNC Holdings during the second quarter worth about $213,000. ProShare Advisors LLC acquired a new position in shares of GNC Holdings during the second quarter worth about $218,000. Oregon Public Employees Retirement Fund acquired a new position in shares of GNC Holdings during the second quarter worth about $237,000. Finally, Menta Capital LLC acquired a new position in shares of GNC Holdings during the first quarter worth about $240,000. Hedge funds and other institutional investors own 95.92% of the company’s stock.
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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