What Insider Buying Is Signaling In Weight Watchers International, Inc. (WTW)?

Thanks to a 7.09 sell/buy ratio, Weight Watchers International, Inc. (NASDAQ:WTW) insider selling over the last three months picked up more than buying did. When insiders sell more shares of their company stock, it’s generally for one reason only: With inside knowledge of their company’s prospects, they expect the stock price to decline soon. WTW recorded 8 sales on the open market in the last three months. They sold nearly 84,955 shares while purchases amounted to 11,983 shares that period. Looking even further back to 12 months, corporate insiders offloaded 17,783,906 shares when buyers snapped up 386,510 shares. The 12-month’s totals signify about a 46.01-to-1 sell/buy ratio.

Pollier-Bousquet Corinne parted with a total of 2.02 thousand shares of Weight Watchers International, Inc. (WTW) at average share price of $51.26. This insider trade in the company took place on 11/29/2018. The total for the sales was set at $103.49 thousand. After this transaction, the President, International account balance stood at 26.18 thousand shares. The stock lost -35.04 percent since that insider sale. On 11/06/2018, Grossman Mindy F, President and CEO, purchased 7 thousand shares at a price per share of $50.1. This added 350.7 thousand shares to the insider’s fortune and the stock saw a -33.53 percent retreat in value since the news became public. This transaction left 48.53 thousand shares in the President and CEO account.

On 08/31/2018, Director Amouyal Philippe performed a sale transaction worth $566.93 thousand. This sale at $75.59 each has eliminated 7.5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -55.95 percent decrease since the transaction was reported. The insider now is left with 46.77 thousand shares remaining in the account. Colosi Michael F, who performs the General Counsel and Secretary job, sold 23.48 thousand shares for $1.77 million. The disposal occurred on 08/30/2018 was priced at $75.36 per share. The share price plunged -55.81 percent since the reporting date. Colosi Michael F now left with a stake of 12.41 thousand WTW stock worth $413.12 thousand after the insider selling.

The 12-month median price target for Weight Watchers International, Inc. (WTW) assigned by the analysts stands at $70, which represents a return potential of 110.21 percent when compared to the closing price of the stock of $33.3 on Friday, January 11. The lowest price target for the stock is $37 — slightly more than 11.11 percent from WTW’s current share price. The stock will probably climb 147.75 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $137-month high price target. This represents a whopping 311.41 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 29.14 on daily chart, which may remain a cause for comfort. If the price breaks below $30.71 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $34.17 mark may result into a pull-back move towards $35.05 level. The stock is currently hovering around the first support level of $32. Below this, the next support is placed in the zone of $30.71. Till the time, the WTW stock trades above this level, bulls have nothing to fear.

Shares of Weight Watchers International, Inc. (WTW) are trading at a P/E ratio of 20.37 times earnings reported for the past 12 months. The industry WTW operates in has an average P/E of 31.58. Its P/E ratio went as low as 9.01X and as high as 40.81 over the 5-year span. Further, it is sporting a 1.57 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.74. 56.4 percent is the gross profit margin for Weight Watchers International, Inc. and operating margin sits at 23.2 percent. Along with this, the net profit margin is 16.2 percent.

On 11th of January, Weight Watchers International, Inc. (NASDAQ:WTW) shares ended lower after a volatile session. The shares dropped -1.78 points or -5.07 percent at $33.3 with a heavy trade volume of 8.202 million shares. After opening the session at $32.9, the shares went as high as $33.75 and as low as $31.58, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.34 billion and now has 70.41 million shares outstanding. Weight Watchers International, Inc. (WTW) stock has lost -32.29 percent of market value in 21 trading days.

WTW stock has a trailing 3-year beta of 2.79, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.41 a share in the trailing twelve months. The stock’s value has fallen -13.62 percent year to date (YTD) against a decline of -41.47 percent in 12 month’s time. The company’s shares still trade -68.5 percent away from its 1-year high of $105.73 and -4.26 percent down from 52-week low of $34.78. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.