Weight Watchers stock jumps after CEO buys 63,000 shares

Shares of Weight Watchers are up on news that its CEO bought up 63,000 shares of the stock.

Video Transcript

RACHELLE AKUFFO: So my pick is Weight Watchers International, ticker WW. Now the stock of the weight loss service company was actually jumping today. You see there it's up more than 16 and 1/2% there. And that's thanks to its CEO's buying activity. Now, according to a Form 4 filing with the SEC, Sima Sistani bought more than 63,000 shares at an average price of $3.91. Director Christopher Sobecki also bought more than 100,000 shares at about $4.91.

Now, insider buying is usually a sign that they expect the stock to rise, but the stock could really use some help. It's down more than 70% here today. You have a number of new signups that have slowed down. The company is also still trying to get a lot of debt off of its balance sheets. You also have, of course, growing competition in the digital health space from rival tech firms.

Now, Weight Watchers is in the midst of executing a turnaround by streamlining some product lines and trimming less profitable segments of its business. But with a recent miss on revenue and earnings per share, plus weaker full year guidance for 2022 in its latest earnings, that seems to be an uphill battle, Seana.

SEANA SMITH: Yeah, it certainly does, although we are heading into probably a very strong period here for WW, for Weight Watchers. We know a lot of people tend to sign up for their products shortly after the new year. So we could see a pop, I think, over the next couple of months. The big question, though, like you just alluded to, with so much competition out there, whether or not that is going to stick and whether or not they're able to hang on to those new subscribers. That, of course, has been a huge issue for the company in the past.