OneSpaWorld (NASDAQ:OSW) Shares Gap Down - Should You Sell?

Key Points

• OneSpaWorld shares fell at the open, dropping from a prior close of $23.62 to $22.96 before trading around $23.03.
• Analysts remain broadly positive: the stock carries an average “Buy” rating and a consensus price target of $30.60, with recent targets raised as high as $35.
• The company exceeded quarterly expectations, reporting $0.29 in EPS and $261.25 million in revenue, while revenue grew 8.5% year over year. OneSpaWorld also pays a $0.05 quarterly dividend, though insiders have sold 60,000 shares over the past 90 days.

OneSpaWorld Holdings Limited (NASDAQ:OSW - Get Free Report) shares gapped down prior to trading on Tuesday. The stock had previously closed at $23.62, but opened at $22.96. OneSpaWorld shares last traded at $23.0320, with a volume of 19,414 shares trading hands.

Analyst Ratings Changes

A number of analysts have recently weighed in on OSW shares. Stifel Nicolaus raised their price objective on OneSpaWorld from $28.00 to $32.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Weiss Ratings reiterated a "buy (b)" rating on shares of OneSpaWorld in a research note on Friday, July 31st. Truist Financial boosted their target price on shares of OneSpaWorld from $28.00 to $29.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Finally, Jefferies Financial Group lifted their price objective on shares of OneSpaWorld from $31.00 to $35.00 and gave the stock a "buy" rating in a research note on Thursday, June 18th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, OneSpaWorld currently has an average rating of "Buy" and an average price target of $30.60.

OneSpaWorld Price Performance

The company has a quick ratio of 1.93, a current ratio of 2.91 and a debt-to-equity ratio of 0.14. The stock's 50 day moving average price is $24.33 and its two-hundred day moving average price is $24.69. The stock has a market cap of $2.36 billion, a price-to-earnings ratio of 29.42 and a beta of 0.90.

OneSpaWorld (NASDAQ:OSW - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.29 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.01. The company had revenue of $261.25 million for the quarter, compared to the consensus estimate of $260.93 million. OneSpaWorld had a return on equity of 18.36% and a net margin of 8.02%.The firm's revenue for the quarter was up 8.5% compared to the same quarter last year. During the same period last year, the firm earned $0.19 EPS. Equities research analysts forecast that OneSpaWorld Holdings Limited will post 1.05 EPS for the current fiscal year.

OneSpaWorld Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 2nd. Stockholders of record on Wednesday, August 19th were issued a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend was Wednesday, August 19th. OneSpaWorld's payout ratio is 25.32%.

Insider Activity

In related news, Director Andrew Heyer sold 25,219 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $26.42, for a total transaction of $666,285.98. Following the sale, the director directly owned 306,926 shares of the company's stock, valued at approximately $8,108,984.92. This represents a 7.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. In the last ninety days, insiders have sold 60,000 shares of company stock valued at $1,583,927. Insiders own 3.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Diversified Trust Co raised its stake in OneSpaWorld by 4.2% during the 1st quarter. Diversified Trust Co now owns 21,027 shares of the company's stock valued at $483,000 after acquiring an additional 850 shares during the last quarter. Sheets Smith Wealth Management lifted its stake in shares of OneSpaWorld by 3.4% in the 2nd quarter. Sheets Smith Wealth Management now owns 36,018 shares of the company's stock worth $1,017,000 after acquiring an additional 1,172 shares during the period. Rockefeller Capital Management L.P. boosted its holdings in shares of OneSpaWorld by 111.1% in the fourth quarter. Rockefeller Capital Management L.P. now owns 2,364 shares of the company's stock valued at $49,000 after acquiring an additional 1,244 shares in the last quarter. Global Retirement Partners LLC purchased a new stake in shares of OneSpaWorld in the second quarter valued at about $38,000. Finally, Keybank National Association OH increased its stake in shares of OneSpaWorld by 6.3% during the first quarter. Keybank National Association OH now owns 24,455 shares of the company's stock worth $561,000 after acquiring an additional 1,456 shares during the period. Hedge funds and other institutional investors own 95.98% of the company's stock.

About OneSpaWorld

OneSpaWorld Holdings Limited is a global provider of health, wellness and beauty services. The company operates spas, salons, fitness centers and wellness facilities, offering services such as massages, facials, hair and nail treatments, fitness programs, thermal experiences and related personal-care services.

OneSpaWorld primarily delivers these services onboard cruise ships and at destination resorts. Its operations serve travelers in major cruise and leisure markets around the world, including North America, Europe, the Caribbean, Asia-Pacific and other international destinations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.