Greg Taxin, Clinton Group Up Stake in NutriSystem Inc. (NTRI) & Send Another Letter to the CEO

Greg Taxin, the manager of Clinton Group, is bullish on NutriSystem Inc. (NASDAQ:NTRI) and according to a recently amended filing with the Securities and Exchange Commission, Mr. Taxin has increased his fund’s stake in the company to 1.73 million shares from 1.70, which account for approximately 6.0% of the total amount of shares outstanding. Clinton Group has also disclosed a letter sent to the management of NutriSystem, in which the investor clarifies and further elaborates on his earlier proposal for the company to maintain the current dividend and to buy back some of its stock.

NutriSystem Inc. (NASDAQ:NTRI)

According to the letter, Mr. Taxin advises NutriSystem to maintain their current yearly dividend of $0.7 per share and, should cash flow allow it, to increase it. Taxin also suggests that the company borrows $80 million to repurchase 4.4 million shares, a move which would decrease the total number of shares outstanding to 24.3 million. He also argues that such actions will bear no negative impact on the financial situation of the firm and would only increase its value over time.

The full letter can be found here:

Clinton Group Letter to NutriSystem

Israel Englander is also bullish on NutriSystem Inc. (NASDAQ:NTRI), having increased his fund’s stake by 1210% during the previous quarter. Millennium Management currently holds approximately 313,500 shares valued at $5.15 million. Jim Simons, the manager of Renaissance Technologies, is also keeping an eye on this stock, having increased his fund’s holding by only 1% during the 2013 fourth quarter. Still, Renaissance holds a significant stake: over 2 million shares reportedly worth $32.9 million.

NutriSystem Inc. (NASDAQ:NTRI), a provider of weight loss programs to clients in the United States, has a market cap of $448 million and its annual dividend of $0.7 yields approximately 4.5%. The stock is traded at a trailing Price to Earnings (P/E) ratio of 62.xx, which is inline with the industry average. The forward P/E ratio of 21.44 is a sign that market participants expect the company to improve its earnings potential. NutriSystem reported $69.8 million in revenues and earnings per share of $0.04 for the three months ending December 31, 2013. Analysts expect it to perform even better in the current quarter and predict revenues of $121 million. Earnings are expected to be negative, though – a loss of $0.02 per share is predicted.

Disclosure: none.

Recommended reading:

Clinton Group Inches Down Stake in NutriSystem Inc. (NTRI); Advises Company To Buy Back Stock

Clinton Group Comments The Wet Seal, Inc. (WTSL)’s Performance; Edges Down the Stake

Clinton Group Sells Some More ValueVision Media Inc (VVTV) Shares

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!