OneSpaWorld (NASDAQ:OSW) Shares Gap Up After Strong Earnings

Key Points

• OneSpaWorld exceeded quarterly expectations, reporting EPS of $0.34 versus the $0.31 consensus and revenue of $276.53 million versus $272.34 million. Revenue increased 7% year over year.
• The strong results drove the stock to gap up 11.3%, opening at $26.63 after closing at $24.95. Shares later traded around $27.46.
• Analysts remain broadly optimistic, with five Buy ratings and one Hold, producing a “Moderate Buy” consensus and an average price target of $31.25; institutional investors own 95.98% of the shares.

OneSpaWorld Holdings Limited (NASDAQ:OSW - Get Free Report) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $24.95, but opened at $26.63. OneSpaWorld shares last traded at $27.4630, with a volume of 157,599 shares trading hands.

The company reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.03. The company had revenue of $276.53 million during the quarter, compared to the consensus estimate of $272.34 million. OneSpaWorld's quarterly revenue was up 7.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.29 EPS.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on OSW shares. Weiss Ratings restated a "buy (b)" rating on shares of OneSpaWorld in a report on Friday, July 31st. Stifel Nicolaus boosted their target price on shares of OneSpaWorld from $28.00 to $32.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Finally, Truist Financial increased their price target on shares of OneSpaWorld from $28.00 to $29.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Five analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, OneSpaWorld presently has a consensus rating of "Moderate Buy" and an average target price of $31.25.

Insiders Place Their Bets

In related news, Director Andrew Heyer sold 4,781 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $26.07, for a total value of $124,640.67. Following the completion of the transaction, the director owned 302,145 shares of the company's stock, valued at $7,876,920.15. This represents a 1.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders have sold a total of 60,000 shares of company stock worth $1,583,927 in the last 90 days. 3.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Park Avenue Securities LLC raised its stake in shares of OneSpaWorld by 5.3% in the third quarter. Park Avenue Securities LLC now owns 11,357 shares of the company's stock worth $255,000 after acquiring an additional 567 shares during the last quarter. Signaturefd LLC increased its holdings in shares of OneSpaWorld by 87.2% in the third quarter. Signaturefd LLC now owns 1,247 shares of the company's stock valued at $28,000 after purchasing an additional 581 shares in the last quarter. Thor Investment Management Inc. OH ADV raised its position in OneSpaWorld by 1.2% in the 3rd quarter. Thor Investment Management Inc. OH ADV now owns 77,126 shares of the company's stock worth $1,735,000 after purchasing an additional 892 shares during the last quarter. Sheets Smith Wealth Management raised its position in 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 purchasing an additional 1,172 shares during the last quarter. Finally, Pinnacle Wealth Planning Services Inc. raised its position in OneSpaWorld by 80.2% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,774 shares of the company's stock worth $62,000 after purchasing an additional 1,235 shares during the last quarter. Institutional investors own 95.98% of the company's stock.

OneSpaWorld Trading Up 11.3%

The stock has a market cap of $2.82 billion, a price-to-earnings ratio of 34.98 and a beta of 0.90. The firm has a fifty day simple moving average of $23.60 and a 200-day simple moving average of $23.76.

About OneSpaWorld

OneSpaWorld Holdings Limited NASDAQ: OSW provides health, wellness and beauty services primarily aboard cruise ships and at destination resorts. The company operates and manages spas, salons, fitness centers and wellness facilities for cruise lines and resort operators, serving travelers in international markets.

Its services include massages and other spa treatments, facials, skincare, hair and beauty services, fitness and wellness programs, medi-spa treatments, acupuncture and related health services.

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.