Technicals Say WW International Inc. (WW) Is Worth Holding

As of Friday close, WW International Inc.’s (NASDAQ:WW) stock was up $0.29, moving up 2.99 percent to $9.98. The average number of shares traded per day over the past five days has been 6,802,960 shares. 3 times new highs have been achieved over the past 5 days, with a -$1.39 fall in that time frame. In the last twenty days, the average volume was 4,180,455, while in the previous 50 days, it was 4,454,634.

Since last month, WW stock rose 2.10%. Shares of the company fell to $8.98 on 09/22/23, the lowest level in the past month. A 52-week high of $12.38 was reached on 09/20/23 after having rallying from a 52-week low of $3.28. Since the beginning of this year, WW’s stock price has risen by 158.68% or $6.13, and marked a new high 18 times. However, the stock has declined by -19.35% since its 52-week high.

WW stock investors should be aware that WW International Inc. (WW) stock had its last reported insider trading activity 135 days ago on May 11. KELLY DENIS F, the Director of the company, purchased of 16,000 shares for $6.86 on May 11. It resulted in a $109,760 investment by the insider. Westend S.A. sold 14,818,300 shares at an average price of $7.15 on May 10. The insider now owns 0 shares following the transaction. On Dec 02, Interim Principal Fin. Officer Stark Heather bought 10,000 shares at $3.85 apiece. The transaction was valued at $38,500.

Valuation Metrics

The latest dividend of $0.1750 per share was paid out, remained unchanged from last year’s $0.1750.

Financial Health

In the three months ended June 29, WW International Inc.’s quick ratio stood at 0.80, while its current ratio was 0.90, showing that the company is not able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 59.60% percent. In the year ended June 29, EBITDA margin amounted to 16.45%, whereas operating margins totaled -32.60%. Based on annual data, WW earned $622.4 million in gross profit and brought in $1.04 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -22.80%. Return on equity (ROE) for the past 12 months was 42.80%.

In WW International Inc.’s quarter-end financial report for June 29, it reported total debt of $1.42 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. WW’s revenue fell -18.91% to $241.51 million during the quarter, while net income inched up to $226.18 million. While analysts expected WW International Inc. to report $0.1 quarterly earnings, the actual figure was -$0.04 per share. During the quarter, the company generated $40.47 million in EBITDA. The liabilities of WW International Inc. were 1.72 billion at the end of its most recent quarter ended June 29, and its total debt was $1.49 billion. The value of shareholders’ equity is $78.97 million.

Technical Picture

This quick technical analysis looks at WW International Inc.’s (WW) price momentum. With a historical volatility rate of 104.30%, the RSI 9-day stood at 41.62% on 22 September.

With respect to its five-day moving average, the current WW International Inc. price is down by -12.18% percent or -$1.39. At present, WW shares trade +7.14% above its 20-day simple moving average and +13.85% percent above its 100-day simple moving average. However, the stock is currently trading approximately +19.58% above its SMA50 and +151.51% above its SMA200.

Stochastic coefficient K was 38.64% and Stochastic coefficient D was 57.51%, while ATR was 1.05. Given the Stochastic reading of 29.56% for the 14-day period, the RSI (14) reading has been calculated as 46.15%. As of today, the MACD Oscillator reading stands at -0.57, while the 14-day reading stands at -0.53.

Analyst Ratings

Morgan Stanley upgraded its rating on WW International Inc. (NASDAQ: WW) to an Overweight in a note to investors on July 26, 2023. The analysts firm previously had an Equal-weight rating on the stock.WW International Inc. (WW) has been rated Overweight by analysts. According to 1 brokerage firm, WW is a sell, and 1 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate WW International Inc. stock as buy, with 3 recommending it as overweight.

With a median target price of $12.50, the current consensus forecast for the stock is $4.00 – $17.00. Based on these forecasts, analysts predict WW International Inc. (WW) will achieve an average price target of $11.40.

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