GNC (NYSE:GNC) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “GNC Holdings' has been trading below the broader industry over the past year. Underperformance over the past few quarters can be attributed to lower sales at the company’s U.S. & Canada and manufacturing/wholesale segments. Also, the decline in gross and adjusted operating margin is a concern. On a positive note, during the third quarter, management witnessed favorable response for its One New GNC Plan. New consumer enrollment under the myGNC Rewards Program exceeded the company’s initial full-year projection. The company has also been witnessing improvement in transactions and e-commerce business, which buoys optimism.”
Other analysts have also issued reports about the company. ValuEngine lowered GNC from a “strong-buy” rating to a “buy” rating in a research report on Thursday, December 21st. Barclays lowered their price objective on GNC from $9.00 to $6.00 and set an “underweight” rating for the company in a research report on Friday, October 27th. Four research analysts have rated the stock with a sell rating, four have assigned a hold rating and two have issued a buy rating to the stock. The stock presently has an average rating of “Hold” and an average target price of $8.12.
GNC (NYSE:GNC) last released its quarterly earnings results on Thursday, October 26th. The specialty retailer reported $0.32 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.33 by ($0.01). GNC had a negative net margin of 15.11% and a negative return on equity of 133.37%. The business had revenue of $609.47 million during the quarter, compared to the consensus estimate of $614.08 million. During the same period in the prior year, the firm earned $0.59 earnings per share. The business’s quarterly revenue was down 2.9% compared to the same quarter last year. equities analysts predict that GNC will post 1.28 EPS for the current fiscal year.
In other news, EVP Tim Mantel acquired 20,000 shares of the stock in a transaction that occurred on Friday, November 10th. The stock was purchased at an average cost of $5.80 per share, for a total transaction of $116,000.00. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.85% of the stock is owned by company insiders.
Hedge funds have recently made changes to their positions in the stock. California Public Employees Retirement System increased its position in GNC by 20.7% in the second quarter. California Public Employees Retirement System now owns 491,700 shares of the specialty retailer’s stock worth $4,145,000 after purchasing an additional 84,300 shares during the period. Maverick Capital Ltd. acquired a new position in shares of GNC during the 2nd quarter worth about $2,797,000. Schwab Charles Investment Management Inc. grew its position in shares of GNC by 17.1% during the 3rd quarter. Schwab Charles Investment Management Inc. now owns 532,155 shares of the specialty retailer’s stock worth $4,705,000 after buying an additional 77,764 shares during the period. State Street Corp grew its position in shares of GNC by 5.3% during the 2nd quarter. State Street Corp now owns 2,369,707 shares of the specialty retailer’s stock worth $19,971,000 after buying an additional 118,390 shares during the period. Finally, Northern Trust Corp grew its position in shares of GNC by 4.6% during the 2nd quarter. Northern Trust Corp now owns 891,636 shares of the specialty retailer’s stock worth $7,517,000 after buying an additional 39,378 shares during the period. Hedge funds and other institutional investors own 61.51% of the company’s stock.
GNC Company Profile
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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