Massive Insiders Selling Prompts Deutsche Bank to Downgrade GNC to Hold, Shares Tank
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Price: $45.97 +0.97%
Rating Summary:
12 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 17 | New: 13
Rating Summary:
12 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 17 | New: 13
Trade GNC Now!
The story of GNC (NYSE: GNC) looks pretty good on the surface. Year-to-date shares have are higher by 25 percent due to strong execution and favorable earnings. However, recently a few of the positive catalysts that have supported the stock have vanished, and worse, CEO Joe Fortunato is selling massive amounts of stock. This is a red flag, according to analysts Deutsche Bank.
Massive insider selling by the CEO is “tough to stomach”, said analyst Shane Higgins. He is also concerned about the company’s ability to continue to drive outsized comps.
“All told, we continue to have a great deal of respect for the management team in Pittsburgh and the tremendous success in driving the business. However, given the current dynamics, we are moving to the sidelines for now,” he said.
Shares of GNC are lower by close to 5 percent today.
Deutsche Bank now has a Hold rating on GNC (NYSE: GNC) with a $42 price target.
For an analyst ratings summary and ratings history on GNC Corp. click here. For more ratings news on GNC Corp. click here.
Shares of GNC Corp. closed at $37.20 yesterday, with a 52 week range of $19.52-$42.70.
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Massive insider selling by the CEO is “tough to stomach”, said analyst Shane Higgins. He is also concerned about the company’s ability to continue to drive outsized comps.
“All told, we continue to have a great deal of respect for the management team in Pittsburgh and the tremendous success in driving the business. However, given the current dynamics, we are moving to the sidelines for now,” he said.
Shares of GNC are lower by close to 5 percent today.
Deutsche Bank now has a Hold rating on GNC (NYSE: GNC) with a $42 price target.
For an analyst ratings summary and ratings history on GNC Corp. click here. For more ratings news on GNC Corp. click here.
Shares of GNC Corp. closed at $37.20 yesterday, with a 52 week range of $19.52-$42.70.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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