Zacks Investment Research cut shares of GNC (NYSE:GNC) from a hold rating to a sell rating in a report published on Friday morning.
According to Zacks, “GNC Holdings exited the fourth quarter of 2017 on a mixed note, with revenues missing the Zacks Consensus Estimate and earnings beating the same. Significant decline in revenues due to softness in manufacturing/wholesale segment raises concern. Tough competition and changing consumer preferences continue to pose challenges. GNC Holdings has been trading below the broader industry over the past year. However, the year-over-year increase in adjusted earnings is encouraging. Also, the expansion in gross and adjusted operating margin is encouraging. During the fourth quarter, management witnessed positive response for its New GNC Plan. The company has also been witnessing improvement in transactions and e-commerce business, which buoys optimism. The recently-announced strategic partnership and China joint venture agreement with Hayao is another positive development.”
A number of other analysts also recently issued reports on GNC. Barclays dropped their price objective on shares of GNC from $9.00 to $6.00 and set an underweight rating for the company in a report on Friday, October 27th. ValuEngine raised shares of GNC from a buy rating to a strong-buy rating in a report on Friday, December 1st. Finally, JPMorgan Chase & Co. dropped their price objective on shares of GNC from $7.00 to $6.00 and set a neutral rating for the company in a report on Wednesday, February 14th. Five analysts have rated the stock with a sell rating, four have given a hold rating and two have assigned a buy rating to the company. The company has a consensus rating of Hold and an average target price of $7.77.
GNC (NYSE:GNC) opened at $4.36 on Friday. The company has a quick ratio of 0.70, a current ratio of 2.44 and a debt-to-equity ratio of -55.95. GNC has a fifty-two week low of $3.13 and a fifty-two week high of $10.95. The company has a market cap of $364.35, a price-to-earnings ratio of -2.08 and a beta of 0.89.
GNC (NYSE:GNC) last announced its quarterly earnings results on Tuesday, February 13th. The specialty retailer reported $0.25 EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.25. GNC had a negative net margin of 6.07% and a negative return on equity of 191.92%. The firm had revenue of $557.74 million during the quarter, compared to the consensus estimate of $568.80 million. During the same period last year, the firm earned $0.07 EPS. The business’s quarterly revenue was down 2.1% compared to the same quarter last year. equities research analysts anticipate that GNC will post 0.88 earnings per share for the current year.
Several hedge funds and other institutional investors have recently bought and sold shares of GNC. Koch Industries Inc. bought a new stake in shares of GNC during the 4th quarter worth $104,000. Quantitative Systematic Strategies LLC bought a new stake in GNC in the third quarter worth $109,000. WFG Advisors LP lifted its stake in GNC by 13.1% in the second quarter. WFG Advisors LP now owns 14,773 shares of the specialty retailer’s stock worth $125,000 after purchasing an additional 1,715 shares during the last quarter. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp bought a new stake in GNC in the fourth quarter worth $126,000. Finally, Macquarie Group Ltd. bought a new stake in GNC in the fourth quarter worth $126,000. 61.07% of the stock is owned by institutional investors.
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GNC Holdings, Inc is a specialty retailer of health, wellness and performance products, which include protein, performance supplements, weight management supplements, vitamins, herbs and greens, wellness supplements, health and beauty, food and drink and other general merchandise. The Company’s operations consist of purchasing raw materials, formulating and manufacturing products and selling the finished products.
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