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Oprah Winfrey's handbag has become much scarce over the last eight months – about $ 560 million – with JP Morgan adding on Tuesday in turn turning a blind eye to WW, the company formerly called Weight Watchers International Inc. .
Stock of the welfare society and weight management
WTW, -3.42%
down 3.0% in active afternoon trading. It reduced its previous losses by 10.5% to 27.10 dollars in 20 days of intraday trading.
The stock has now lost 71.5% since the June 20, 2018 record of $ 103.09.
Oprah is WW's second-largest shareholder, holding 5,724,344 shares, or about 11% of the outstanding shares, according to its latest filing with the Securities and Exchange Commission.
At the close of the records, the value of Oprah's interest was approximately $ 776 million. At current prices, it would only represent $ 221 million.
FactSet, MarketWatch
But before investors shed a tear at the media mogul, her participation is still worth about $ 170 million more than when she bought it. And that does not include the more than $ 126 million it earned when it sold a share of shares in early March 2018.
J.P. Morgan's analyst Christina Braithwaite reduced WW to a rare underweight, just one month after the company moved from being overweight to neutral. Braithwaite also reduced its stock price target to $ 25, about 15% below the current level of $ 37.
According to Braithwaite, his research suggests that daily active users of the WW app continue to contract during the "most important time of year". Since the demotion of January 11, which was based on "a low registration period for New Year's resolution," Braithwaite said that trends in daily active users have worsened, that the criticisms of applications are became more and more negative and competitors Noom and Diet Doctor continued to gain traffic shares.
WW is expected to release its financial results for the fourth quarter after the market closes Feb. 26.
On October 18, 2015, Oprah acquired beneficial ownership of 9,875,571 shares through the purchase of 6,362,103 common shares at $ 6.79 and through the issuance of 3 513,468 call options. additional shares, also at $ 6.79.
Do not miss: Oprah offers Weight Watchers investors their best day.
How did Oprah make and lose money on WW
Between March 2, 2018 and March 6, 2018, Oprah sold 2,359,702 common shares at an average price of $ 60.48. Of this total, 1,405,387 shares were purchased for the first time through exercise of options at an exercise price of $ 6.97. The company also disclosed that Oprah was awarded an additional 8,180 shares between October 18, 2015 and January 2, 2018 as compensation for its services as a director.
Excluding the shares received as compensation, Oprah made approximately $ 126.25 million of its investment, but did not pocket the entire amount. It had transferred 361,000 shares to the Oprah Winfrey Charitable Foundation before the sale of the shares.
As of May 15, 2018, Oprah has announced that it holds the effective ownership of 7,524,244 shares of Weight Watchers, of which 5,416,263 common shares and options to purchase 2,108,081 shares at the price of $ 15,000. exercise of $ 6.79. On April 2, 295 shares were awarded as compensation for services rendered.
At the record close of $ 103.09, this investment was worth $ 775.68 million. At current prices, it is $ 221.07 million, about $ 554.61 million less than eight months ago. But excluding shares awarded as compensation, the shares it still holds are worth $ 169.74 million more than when it was acquired.
See related: Weight Watchers action breaks record after J.P. Morgan's "overweight" bullish call.
On September 24, 2018, Weight Watchers had declared that he was changing his name and becoming WW. Since then, the stock has sold 58%, while the S & P 500 index
SPX, + 0.32%
lost 5.0%.
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