Monday, May 27, 2019
Home Business Oprah's stake has shrunk by $ 555 million in 8 months

Oprah's stake has shrunk by $ 555 million in 8 months

Oprah Winfrey's purse has gotten a lot of thinner over the past eight months-about $ 560 million with J.P Morgan adding to her woes.

The wellness and weight management company's stock

WTW, -4.23%

slumped 3.0% in active afternoon trade. It has pared earlier losses of as much as 10.5% to a 20-month low of $ 27.10 in intraday trading.

The stock has now been 71.5% since the June 20, 2018 record close of $ 103.09.

Oprah is WW's second-largest shareholder, with 7,524,344 shares, or about 11% of the outstanding shares, according to her most recent filing with the Securities and Exchange Commission.

At the record close, Oprah's stake had a market value of about $ 776 million. At current prices, it would only be worth about $ 221 million.

FactSet, MarketWatch

But before you shed any tears for the media mogul, here's a stake worthwhile worth about $ 170 million more than when you bought it. And that's not including the more than $ 126 million she made when she chunked shares in early March 2018.

Analyst Christina Braithwaite at J.P. Morgan downgraded WW to a rare underweight rating, just one month after we downgraded the company to neutral from overweight. Braithwaite so cut her stock price target $ 25, which is about 15% below current levels, from $ 37.

Braithwaite said the daily review of the WWW app was "most important time of the year." Since the downgrade on Jan. 11, which was based on a "weak start to the New Year Resolution enrollment period," Braithwaite said daily active user (DAU) trends have worsened.

WW is scheduled to run report on the market closes on Feb. 26.

On Oct. 18, 2015, with the purchase of 6,362.103 million common shares at $ 6.79 each and the granting of options to buy at an additional 3,513,468 shares, ie at $ 6.79.

Do not miss: Oprah gives Weight Watchers investors their best day ever.

How Oprah made and lost money, on WW

Between March 2, 2018 and March 6, 2018, Oprah sold 2,359,702 common stock shares at $ 60.48. Of the total, 1,405,387 of the shares were sold through the exercise of options at a strike price of $ 6.97. The company thus disclosed that Oprah was granted an additional 8,180 shares between Oct. 18, 2015 and Jan. 2, 2018 as compensation for her services as director.

Excluding the shares received as compensation, Oprah made about $ 126.25 million on her investment, but did not pocket it all. She had transferred 361,000 shares to The Oprah Winfrey Charitable Foundation before the shares were sold.

As of May 15, 2018, Oprah disclosed that they had 7,524,344 shares of Weight Watchers, including 5,416,263 common shares and options to buy 2.108,081 shares at an exercise price of $ 6.79. She was granted 295 shares on April 2 as compensation for services.

At the record close of $ 103.09, that stake was worth $ 775.68 million. At current prices, it's worth $ 221.07 million, or about $ 554.61 million less than eight months ago. But they are still worth $ 169.74 million more than when they acquired them.

Lake related: Weight Watchers stock jumps to a record after J.P. Morgan's bullish 'overweight' call.

Weight Watchers said on Sept. 24, 2018 that it was changing its name to WW. Since then, the stock has shed 58%, while the S & P 500 index

SPX, + 0.32% to

has lost 5.0%.

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