Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

NutriSystem CEO Dawn Zier Just Got This Letter From Activist Clinton Group

NutriSystem CEO Dawn Zier: Clinton Group recently upgraded its position in NutriSystem Inc. (NASDAQ:NTRI), currently owning 5.2% of the company, which is equivalent to some 1.5 million shares, versus the previously owned amount of 1.4 million shares, a filing with the SEC revealed. At the same time, the shareholder sent a letter to NutriSystem’s CEO, expressing their positive attitude towards company’s activity and some ideas to boost shareholder value.

NutriSystem Inc. (NASDAQ:NTRI)

NutriSystem is a company specialized in the production of weight management systems. According to the letter sent by Clinton to the company’s CEO Dawn M. Zier, the investor considers that the company can reach the $106 million EBITDA by 2016, which was the average amount during the 2006-2010 period. The adjusted EBITDA of NutriSystem last year totalled $27.3 million.

“With the free cash generated over the next two years (which Citigroup Research estimates at $25 million after dividend payments), plus the existing cash on the balance sheet ($35 million), this implies a stock price in the mid $30s by Fall 2015. Such a stock price would be approximately equal to the average price from 2006 to 2010 and significantly below the stock’s pre-recession peak of $75. For today’s owners, a mid $30s price by the Fall of 2015 implies an annualized return of over 50%.,” the letter also said.

Aside from Clinton Group, Renaissance Technologies, managed by Jim Simons, disclosed ownership of almost 2.1 million shares of NutriSystem. Coatue Management, managed by Philippe Laffont, and Chuck Royce’s Royce & Associates, held 634,900 shares and 355,800 shares respectively.

Here’s the full letter:

EX-99, NutriSystem, Inc.-Clinton Group by alexoleinic

Recommended Reading:

Following Icahn Into Nuance Could Reward Investors

Phil Frohlich, Prescott Group Now Own 10% of PharmAthene

Hedge Fund News: Carl Icahn, Bill Ackman & Man Group’s Sell Ratings

Disclosure: none

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!