Wall Street Zen Downgrades OneSpaWorld (NASDAQ:OSW) to Hold

Key Points

• OneSpaWorld (NASDAQ: OSW) has been downgraded from a "buy" rating to a "hold" rating by Wall Street Zen, despite a consensus rating of "buy" and a price target of $22.67 from other brokerages.
• The company reported a quarterly earnings per share of $0.25, exceeding analysts' expectations, with revenue of $240.73 million, marking a 7% increase year-over-year.
• Insider trading activity has increased, with directors selling significant shares recently, leading to a noted decrease in their ownership percentage of the stock.

Wall Street Zen cut shares of OneSpaWorld (NASDAQ:OSW - Free Report) from a buy rating to a hold rating in a report published on Saturday morning.

Several other equities research analysts have also issued reports on the stock. Stifel Nicolaus lifted their price objective on shares of OneSpaWorld from $23.00 to $25.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. TD Securities dropped their price objective on shares of OneSpaWorld from $24.00 to $22.00 and set a "buy" rating on the stock in a report on Thursday, May 1st. Cowen reissued a "buy" rating on shares of OneSpaWorld in a research note on Thursday, May 1st. Truist Financial upped their target price on shares of OneSpaWorld from $19.00 to $21.00 and gave the company a "buy" rating in a research note on Monday, June 9th. Finally, William Blair restated an "outperform" rating on shares of OneSpaWorld in a research report on Wednesday, July 23rd. Five investment analysts have rated the stock with a Buy rating, According to MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $22.67.

OneSpaWorld Stock Performance

Shares of OSW traded down $0.23 during mid-day trading on Friday, reaching $22.71. 102,508 shares of the company's stock traded hands, compared to its average volume of 766,514. The business's 50-day moving average price is $21.51 and its 200-day moving average price is $19.47. The stock has a market capitalization of $2.33 billion, a P/E ratio of 33.39 and a beta of 1.38. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.19 and a current ratio of 1.88. OneSpaWorld has a 12 month low of $14.21 and a 12 month high of $23.28.

OneSpaWorld (NASDAQ:OSW - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.01. The business had revenue of $240.73 million for the quarter, compared to analyst estimates of $238.28 million. OneSpaWorld had a net margin of 7.74% and a return on equity of 15.93%. The business's revenue for the quarter was up 7.0% on a year-over-year basis. During the same quarter last year, the business earned $0.20 earnings per share. OneSpaWorld has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Equities analysts predict that OneSpaWorld will post 0.9 earnings per share for the current year.

OneSpaWorld Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Wednesday, August 20th will be paid a $0.04 dividend. This represents a $0.16 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Wednesday, August 20th. OneSpaWorld's dividend payout ratio is 23.53%.

Insider Activity

In other OneSpaWorld news, Director Andrew R. Heyer sold 31,289 shares of the company's stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $21.59, for a total transaction of $675,529.51. Following the sale, the director owned 332,145 shares in the company, valued at $7,171,010.55. This represents a 8.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Glenn Fusfield sold 22,192 shares of the firm's stock in a transaction that occurred on Tuesday, August 26th. The shares were sold at an average price of $22.40, for a total value of $497,100.80. Following the completion of the sale, the director directly owned 94,494 shares of the company's stock, valued at $2,116,665.60. This represents a 19.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 214,129 shares of company stock worth $4,701,156. 3.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. American Century Companies Inc. increased its holdings in OneSpaWorld by 566.4% in the first quarter. American Century Companies Inc. now owns 1,448,268 shares of the company's stock valued at $24,316,000 after buying an additional 1,230,931 shares during the last quarter. Amalgamated Bank raised its stake in OneSpaWorld by 22.2% during the 1st quarter. Amalgamated Bank now owns 3,479 shares of the company's stock valued at $58,000 after purchasing an additional 631 shares during the period. Bessemer Group Inc. increased its stake in shares of OneSpaWorld by 41,840.0% in the first quarter. Bessemer Group Inc. now owns 16,776 shares of the company's stock worth $282,000 after acquiring an additional 16,736 shares during the last quarter. Deutsche Bank AG increased its position in OneSpaWorld by 48.3% during the fourth quarter. Deutsche Bank AG now owns 88,588 shares of the company's stock worth $1,763,000 after buying an additional 28,857 shares during the last quarter. Finally, Bank of America Corp DE boosted its holdings in OneSpaWorld by 4.0% during the fourth quarter. Bank of America Corp DE now owns 473,223 shares of the company's stock valued at $9,417,000 after acquiring an additional 18,207 shares during the period. Institutional investors and hedge funds own 95.98% of the company's stock.

About OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services.