Digging Up the Facts on GNC Holdings, Inc. (GNC)

GNC Holdings, Inc. (GNC) is an interesting player in the Services space, with a focus on Drug Stores. The stock has been active on the tape, currently trading at $7.03, up from yesterday’s close by 0.43%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Does this stock stack up well when compared to its peers in the industry space? Let’s take a look. GNC Holdings, Inc. (GNC) currently trades with a market capitalization of $480.15 Million. That value represents a market adjusting for revenues that have been falling by -9.41 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For GNC, the company currently has $34.46 Million of cash on the books, which is offset by $12.56 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $148.62 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.33 on a per share basis this quarter. Perhaps, that suggests something about why 1.40% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, GNC Holdings, Inc. recorded a 52-week high of $34.76. It is now trading 27.73% off that level. The stock is trading $8.30 its 50-day moving average by 1.27%. The stock carved out a 52-week low down at $6.87.

In recent action, GNC Holdings, Inc. (GNC) has made a move of -17.97% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 91.05, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 37.62% with $67.95 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of GNC.

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