Weight Watchers Stock Soars High, Again!
On Tuesday, the stock of Weight Watcher International Incorporation shoot higher around +31.11% for 2 consecutive straight sessions, a day following the weight management services company told that Oprah Winfrey took a 10% stake. The stock increases for up to 32% in morning trade with 36.8 million shares volume, which was almost 12x the whole-day average over the last 30 days based from FactSet.
Now, it’s on track to set its 3rd biggest percentage ever gain in its record, a day after it has produce its highest gain ever. The stock was more than doubled on Monday, rocketing to 105%, on volume of over 75 times the whole-day average. B.Riley and Co analysts Linda Bolton who actually doesn’t cover Weight Watchers made a note to clients – “We couldn’t think of a bigger-time weight-loss spokesperson than Oprah Winfrey as she will set the Weight Watchers name on great exposures.”
Now, the shares are having 170% run up in two sessions plus it almost become quintupled ever since it has close at $3.78 on July 9 record low.
The stock went up to 117% after the news that Oprah just made a huge bet on the company. However, provided of the degree of the rally, this might go beyond the “Oprah Effect.”
There’s a rumor that the stock is having a short squeeze. This happened when short-sellers who gain from a dropping price – are pushed to cover their shorts, a method in which the short-sellers to madly purchase the stock.
On last Monday’s press release, Winfrey said that the weight-loss assistance company united with its board and bought a newly supplied stock showing a 10% outstanding stake of shares. Also, she purchased options to get an added 5% of completely diluted shares.
“Weight Watchers has provided me the necessary starting tools to make the lasting change that not only me but to many people who are struggling to realize the weight we’ve been longing to achieve,” she said. “I trust this program a lot so that I decided to invest in the company and be an associate in its evolution.”
According to Ray Debbane the chairman of Weight Watchers – “Oprah and Weight Watchers make a very strong combination.” “Oprah is seen as somewhat a force of nature who has a different level of connection with people as she doesn’t only render help but serves as an instrument to inspire to others. This partnership will hasten our revolution and significantly expand our capability to impact a lot of people across the world.”