Digging Up the Facts on Weight Watchers International, Inc. (WTW)

Weight Watchers International, Inc. (WTW) is an interesting player in the Services space, with a focus on Personal Services. The stock has been active on the tape, currently trading at $71.35, up from yesterday’s close by 3.60%. 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

Weight Watchers International, Inc. (WTW) currently trades with a market capitalization of $4.92 Billion. That value represents a market adjusting for revenues that have been growing by 24.06 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $241.32 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.86 on a per share basis this quarter. Perhaps, that suggests something about why 10.35% 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, Weight Watchers International, Inc. recorded a 52-week high of $77.19. It is now trading 5.84% off that level. The stock is trading $65.84 its 50-day moving average by -5.51%. The stock carved out a 52-week low down at $22.67.

In recent action, Weight Watchers International, Inc. (WTW) has made a move of +12.86% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 12.84, and it’s gotten there by action that has been more 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 17.22% with $32.09 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of WTW.

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