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. “
A number of other equities research analysts have also commented on the company. Piper Jaffray Cos. lowered GNC Holdings from an overweight rating to a neutral rating and dropped their target price for the company from $38.00 to $20.00 in a research report on Thursday, July 28th. Vetr lowered GNC Holdings from a buy rating to a hold rating and set a $20.50 target price on the stock. in a research report on Monday, August 15th. Morgan Stanley reiterated an equal weight rating and issued a $26.00 target price (down previously from $28.00) on shares of GNC Holdings in a research report on Wednesday, June 22nd. Barclays PLC initiated coverage on GNC Holdings in a research report on Friday, September 23rd. They issued an equal weight rating and a $21.00 target price on the stock. Finally, JPMorgan Chase & Co. reiterated a hold rating and issued a $25.00 target price on shares of GNC Holdings in a research report on Friday, July 29th. Two analysts have rated the stock with a sell rating, thirteen have issued a hold rating and two have given a buy rating to the company. The stock currently has an average rating of Hold and a consensus target price of $27.37.
GNC Holdings (NYSE:GNC) opened at 20.88 on Wednesday. The stock has a market capitalization of $1.43 billion, a price-to-earnings ratio of 7.82 and a beta of 0.91. GNC Holdings has a 12-month low of $18.92 and a 12-month high of $43.09. The company has a 50 day moving average of $20.39 and a 200-day moving average of $25.13.
GNC Holdings (NYSE:GNC) last issued its earnings results on Thursday, July 28th. The company reported $0.79 EPS for the quarter, beating the Zacks’ consensus estimate of $0.78 by $0.01. The firm had revenue of $689.60 million for the quarter, compared to analyst estimates of $670.65 million. GNC Holdings had a return on equity of 50.48% and a net margin of 7.73%. GNC Holdings’s revenue for the quarter was down 2.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.79 earnings per share. On average, equities research analysts forecast that GNC Holdings will post $2.75 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Friday, September 16th were paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 3.83%. The ex-dividend date was Wednesday, September 14th. GNC Holdings’s payout ratio is 29.52%.
Several hedge funds and other institutional investors have recently made changes to their positions in GNC. Prudential Financial Inc. boosted 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 valued at $65,928,000 after buying an additional 1,326,320 shares during the last quarter. Fuller & Thaler Asset Management Inc. boosted its stake in shares of GNC Holdings by 55.9% in the second quarter. Fuller & Thaler Asset Management Inc. now owns 3,094,679 shares of the company’s stock valued at $75,170,000 after buying an additional 1,109,236 shares during the last quarter. Passport Capital LLC purchased a new stake in shares of GNC Holdings during the second quarter valued at approximately $24,290,000. BlackRock Fund Advisors boosted its stake in shares of GNC Holdings by 132.9% in the second quarter. BlackRock Fund Advisors now owns 1,748,247 shares of the company’s stock valued at $42,465,000 after buying an additional 997,581 shares during the last quarter. Finally, Neuberger Berman Group LLC boosted its stake in shares of GNC Holdings by 54.1% in the second quarter. Neuberger Berman Group LLC now owns 1,650,237 shares of the company’s stock valued at $40,084,000 after buying an additional 579,556 shares during the last quarter. 95.92% of the stock is owned by institutional investors and hedge funds.
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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