Retail
NutriSystem Shareholders Lost More Weight Than Their Clients (NTRI)
Published:
Last Updated:
NutriSystem, Inc. (NASDAQ:NTRI) has lowered expectations for its preliminary financial results for its third quarter. The company simultaneously announced that it authorized a $100 million increase to its existing stock repurchase program and it has entered into a $200 million credit facility. But the damage is done:
Shares were down 1.4% today in regular trading to close at $47.57, toward the low end of the $40.82 to $76.20 trading range over the last year. Shares have just gapped down after reopening and are currently trading around $38.00. If this holds, these prices are new 52-week lows. At some point someone may look at this as a value stock, but not today.
If you watch CNBC or watch other television you’ll notice that its advertising has been much more sporadic than steady compared to prior months. Maybe this buyback add-on will help stabilize the stock. This was probably somewhat assumed by many major brokerages. Lehman downgraded this stock back in July, but a boutique called Broadpoint apparently just upgraded this on Monday.
Jon C. Ogg
October 3, 2007
Jon Ogg produces the 24/7 Wall St. SPECIAL SITUATION INVESTING NEWSLETTER; he does not own securities in the companies he covers.
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.