Weight Watchers International, Inc. (NYSE:WTW) may be about to face a major acquisition, if rumors are correct.
Sources close to the matter claim that one of the nation’s top dieting programs will soon be bought out by Invus Group Ltd. The firm has a majority stake on Weight Watchers, and such a move could help the company expand.
The program has been getting a lot of positive press lately, including news of a woman who said she lost 65 pounds using the diet. U.S. News recently unveiled its ranking of the best diets for 2017 in eight categories, and Weight Watchers continued to be close to the top of the list, coming out on top in three of these.
Now, all of social media is buzzing over the possibility that the company will soon be owned by its majority shareholders. The deal would reportedly be worth $14 or $15 per company share.
Weight Watchers recently released projections of fiscal 2017, which are slated to be around $1.11 per share, below the $1.15 per share that the company previously projected. For its fourth quarter of the year, it will earn about 21 cents per share.
On a consensus basis, Weight Watchers has an average rating of a “Hold” with a price target of $15.46. The stock has a market cap of $763.31 million with a price to earnings ratio of 17.92.
WTW shares soared 4.7% Friday afternoon.
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